Hon. Sam G. Reams Opinion No. O-4202
County Attorney
Brooks County Re: Taxation of personal property of
Falfurrias, Texas a State banking corporation.
Dear Sir:
We acknowledge receipt of your request for an opinion
of this department with reference to the above subject.
‘Your request reveals the ‘facts to be that *the
. San
Antonio Loan and Trust Company Is a bankrng .corporatlon, organ-
ized under the laws of the- State of Texas. That they are the
owners of about Pj,OOO acres of land and 1,00$3 head of cattle,
all located In Brooks County, Texas. That the Brooks County
Tax Collector -maintains that the cattle should be taxed in
Brooks County, while the bank contends that they are a part of
-the capital assets and the tax thereon should be paid in Bexar
County, the home .offlce.
These cattle constitute a part of the personal prop-
ert of the banking corporation snd Article 71.65, Revised Civil
Sta f utes, 1925, provides in part as follows:
” . . . 4. All other banks . . . shall render
their lists in the following manner: . . .
“(5) All other property belonging or apper-
taining to. said bank or business Including both
personal property and real estate, shall be listed
as other personal property and real estate.”
Artlcie 7166, Revised Civil Statutes of 1925, provide.sr
nEvery banking corporation . . . shall . . .
render its real estate to the tax assessor at the
time and in the manner requ&red of individuals.
At the time of making .-such-rendition the president
or some other officer of said bank shall file with
said assessor the Worn statement showing the num-
ber and amount of the shares of said bank, the name
and residence of each shareholder, and the number
Hon. Sam G. Reams, page 2 (o-4202)
and amount of shares owned by him. Every share-
hol.der of ‘.said bank, shall, in the city or town
where said bank is located, render at their actual
value to the tax assessor all shares owned by him
In such bank; and In case of his-failure so to do,
the assessor shall assess such unrendered shares
as other uurendered property. Each share in such
bank shall be taxed only for the difference between
Its actual cash value. and .the .proportfonate amount
per stare at which its real estate, Is assessed.
.,. .
Thi purpose of these two provisions if our statutes is
to provide a convenient means of taxing property belonging to a
banking corporation. The bank is first required to f lie a list
oft all proprty and- then .file. a list showing the number and amount
of shares there are 4.n said bank and the names of the .shareholders,
together with the number and amount of the shares owned by each.
The shareholder Is then required to render hi,s shares for taxa-
tion at their actual value, and upon a failure to render the as-
sessor shall render the shares and .place them on the unrendered
rolls. .
‘.
The effe+ of the& stat&es 1s to require the. banking
corpor’atlon to pay t-es on .a11 of its real estate and the- shsre-
hold’ers .to pay the; taxes on the. personal property. Engelke v.
Shlenker, 12 S. W. 9990City of MarshalL v.’ State Bank of Marshall,
127 S.W. 1083. It follows that a State bank is not liable for the
taxes on Its personal -property.*.
You &e thererore advised that- Brook2 County. c¬ ‘re-
quire San Antonio Loan and Trust Company to pay taxes on the 1,000
head of cattle located in,. that county. _ .. _
. .
Trusting that the fo&goihg fully answers your inquiry,
we are
APPROVED DEC.9 1941,. Yours very ‘t&y
/s/ Grover &l&s ATTORNEY GENERAL OF TEXAS
FIRST ASSISTANTATTORNEYGENERAL. By /s/ Richard H. Cocke
Richard H.. Cocke, Assistant
iPPiOvED: OPINIONCiOMMiTTEE
BY: BWB, CHAIRMAN.
RHC:db:wb