716 



PENNSYLVANIA. 



State may declare its charter forfeited. All 

 companies doing business in the State, with 

 the exceptions mentioned ahove, are subject 

 to taxation as follows : If dividends have been 

 declared during the year amounting to six per 

 cent, of the par value of the capital stock, or 

 over, the rate will be one half mill upon the 

 capital stock for each one per cent, dividend 

 declared. If no dividend has been declared, 

 or if the dividends amount to less than six per 

 cent, of the capital stock, the tax will be at 

 the rate of three mills upon each dollar of val- 

 uation of the capital stock. If there shall be 

 more than one kind of stock, and on one a 

 dividend of six per cent, or over shall have 

 been declared, and on the other no dividend 

 or a dividend of less than six per cent, shall 

 have been declared, the rate shall be one half 

 mill on the capital stock for each one per cent, 

 dividend declared in the first case, and three 

 mills on each dollar of valuation in the second 

 case. When a company has made a profit and 

 added it to its sinking fund without dividing 

 it among its stockholders, such profit will be 

 taxed accordingly. All limited partnerships 

 engaged in business in the State, no matter 

 where organized, are made subject to the pro- 

 visions of the act. For the purpose of taxa- 

 tion, the interests in limited partnerships are 

 to be deemed capital stock, and any division 

 of the profits among the owners of such inter- 

 ests are to be taxed as dividends. The provi- 

 sions governing limited partnerships, however, 

 are not made to apply to those organized for 

 manufacturing or mercantile purposes. All 

 companies and limited partnerships engaged in 

 the business of transporting freight or passen- 

 gers, and all the telegraph, express, and palace- 

 and sleeping-car companies, incorporated and 

 unincorporated, doing business in the State, 

 are required to pay a tax of eight tenths of 

 one per cent, upon the gross receipts of their 

 business on July 31st and January 31st in each 

 year. Where such companies are engaged in 

 mining, purchasing, and selling coal, the re- 

 ceipts derived from the sale of such coal are 

 not to be taxed, but an account of the coal so 

 dealt in must be kept, and the company must 

 charge itself with the transportation thereof 

 at the same rates which are or would have 

 been charged to other companies or individu- 

 als for transportation of similar freight; and 

 the sums so charged for transportation are to 

 be taxed as a part of the gross receipts. Insur- 

 ance companies excepting those based upon 

 the purely mutual plan are required to make 

 semi-annual reports, sworn to by the proper 

 officers, and showing the amount of premi- 

 ums received during the previous six months, 

 whether in cash notes or other substitute for 

 money, and they shall pay a tax of eight tenths 

 of one per cent, upon the gross amount of such 

 premium. All companies owning and oper- 

 ating coal-lands are required to report every 

 six months the amount of coal mined by them, 

 or by other companies or individuals under a 



lease or other contract from such companies, 

 and also the amount of coal not mined which 

 shall have been purchased by such companies. 

 The act further provides that such coal com- 

 panies shall pay a tax of three cents upon each 

 ton of coal of 2,240 pounds, mined or pur- 

 chased, until July 1, 1880, and one cent upon 

 each ton until July 1, 1881, after which time 

 the tax on coal shall cease. The coal con- 

 sumed by the company producing it is not to 

 be taxed. All private bankers and brokers, 

 unincorporated banking institutions, etc., and 

 all incorporated companies except those liable 

 to a tax on their capital stock or gross receipts, 

 are to make annual statements of their net 

 earnings from all sources. A tax of three per 

 cent, upon such net earnings is to be imposed 

 in addition to the taxes otherwise imposed by 

 the act. All taxes which remain unpaid after 

 the time provided for their payment will bear 

 interest at the rate of twelve per cent, per 

 annum until their settlement. The taxes are 

 made a lien on all the property, real and per- 

 sonal, of the corporations or limited partner- 

 ships taxed, and are to take precedence of nil 

 claims, incumbrances, or liens arising after the 

 passage of the act. No corporation or limited 

 partnership liable to taxation under the act can 

 be dissolved by decree of court until all taxes 

 have been paid and a certificate of that fact 

 filed in the proper court. All foreign corpora- 

 tions, except insurance companies, are required 

 to obtain an annual license from the Auditor- 

 General to have an office in the State, for which 

 they shall pay one fourth of a mill on each dol- 

 lar of capital stock which they are authorized 

 to have. For a failure to pay such tax a pen- 

 alty of fifty per cent, is to be imposed. No 

 license, however, will be required for corpora- 

 tions paying a tax under other provisions of 

 the act, or whose capital stock or a majority 

 thereof is owned or controlled by a corpora- 

 tion of the State which does pay a tax under 

 other provisions of the act.. All mortgages, 

 debts due from solvent debtors, except notes 

 or bills for work or labor done, all obligations 

 given to banks for money loaned and bank- 

 notes, all shares of stock in any bank or sav- 

 ings institution incorporated in the State, all 

 public loans or stocks except those of the State 

 or of the United States, all money loaned or 

 invested on interest in any other State, and 

 all moneyed capital in the hands of individual 

 citizens of the State, are to be taxed for State 

 purposes, at the rate of four mills on every 

 dollar of the value thereof, annually. All mort- 

 gages, judgments, and moneys due on agree- 

 ment to sell real estate are exempted from 

 taxation except for State purposes; and all 

 corporations paying interest on loans taxed for 

 State purposes only shall deduct the tax from 

 such interest, and pay the same into the State 

 Treasury. Where a bank elects to collect an- 

 nually from its stockholders a tax of six tenths 

 of one per cent, of the value of the shares of 

 such bank and pay it over to the State Trea- 



