132 ANNUAL REPORT OF THE Off. Doc. 



TAX ON BANK STOCK.* 



1. National and incorporated State banks and savings' institutions 

 with capital stock, to make report to Auditor General, on or before 

 June 20th each year, on oath of president, cashier or treasurer, set- 

 ting forth number of shares of capital subscribed for or issued and 

 the actual value thereof, ascertained b}' adding together the amount 

 of capital stock paid in, the surplus and undivided profits, and divid- 

 ing this amount by the number of shares. Auditor General to sat- 

 isfy himself of the correctness of such valuation, and to assess a 

 four mill tax on each dollar of the actual value of each share of 

 stock, and to settle and forward each bank a copy of account for 

 tax. Copy of settlement forwarded to bank to be posted, and 

 stockholders notified, and Auditor General to hear any stockholders 

 on the subject of valuation within thirty days after settlement of 

 account. Bank to pay tax within forty days after settlement, from 

 its general fund or collect the same from its shareholders. In case 

 of failure to pay tax, make report or neglect or refusal of otticers 

 to appear before Auditor General, if summoned, he shall, after 

 ascertaining value of shares from best information obtainable, as- 

 sess tax on said shares, add fifty per cent, penalty thereto, and collect 

 the same according to law. Bank responsible for tax in case of 

 neglect or refusal to post copy of settlement giving notice to share- 

 holders. In case bank elects to collect annually from shareholders, 

 the four mill tax on all shares subscribed for or issued, and pay 

 the same into the State Treasury on or before March 1st, the shares 

 and so much of the capital and profits of the bank as are not in- 

 vested in real estate are to be exempt from local taxation, and such 

 bank shall not be required to make any report to the local assessor 

 or county commissioners of its personal property owned in its own 

 right or pay any tax thereon. In lieu of this rate of taxation, banks 

 may elect to collect and pay into the State Treasury, on or before 

 March 1st, a ten mill tax on each dollar of the par value of all its 

 shares subscribed for or issued, and by so doing the shares, and 

 so much of the capital and profits of the bank as are not invested 

 in real estate, shall be exempt from local taxation. 

 Act July 15, 1897, secUon 1, (P. L., page 292). 



BANK EXAMINATIONS. 



1. To bear the expenses of examination by the Banking Depart- 

 ment of the Commonwealth of incorporated State banks, savings' in- 

 stitutions, trust companies, and all corporalions having power of 



♦Shares of National banks located in other States are not taxable In Penn- 

 sylvania. — Tappan vs. Merchants' National Bank, 22 Wall., page 490. 



