The fiscal problem in Missouri

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Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VI. Tax administration ( Continued)

Collection:: Economics Books

TAX ADMINISTRATION 165 comprises the tax base. The value of the shares is assessed to the individual shareholders, but the tax is paid by the bank. Except to the extent that the bank may be able to increase its real estate deduction by an amount in excess of its book value, the tax is equivalent to a tax on the assets of the bank, other than the real estate, that are not offset by liabilities other than the capital liabilities, including surplus and undivided profits. If the real estate deduction is equiva- lent to the book value, the result is a 1009, assessment of the book value of the stock less the real estate, which is separately raxed. This method of taxing banks is open to objection, aside from the fact that other forms of property are not assessed at full value. The larger the surplus, the larger will be the taxes assessed against the stock of the bank. Also, the larger ‘he value of the real estate, the smaller will be the amount of taxes, for real estate is not ordinarily assessed at full value. The present method of taxation thus furnishes an inducement for a bank to keep its surplus low and its real estate invest- ment relatively high, in order to reduce taxes to a minimum. A surplus of considerable size is most desirable as a buffer for the protection of depositors, while an unusually large real sstate investment is not generally to be desired. It is the 1009, assessment feature, however, that has aroused the most opposition. Bank statements are matters of public information, and the bank has no means by which it can “window-dress” its statement for purposes of taxation. In the face of much lower assessments for other forms of property it can hardly be contended that the 100% assess- ment of bank stock is equitable. In several cases, the bankers have contended for a 75%, assessment as a compromise. Although 75%, is higher than the assessment ratio for prop- erty in general, the bankers probably gauged the situation correctly in proceeding on the assumption that the most that could be hoped for was a moderate reduction of the assess- ment ratio and not an immediate reduction to the average level at which property throughout the state is assessed. In the Boonville National Bank! case, the bank contended that the action of the assessor in assessing bank stock at 1 Boonville National Bank v. Schlotzhauer, 317 Mo. 1298.

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