TAXATION-STATE TAX ON SHARES OF NATIONAL BANK-PREFERRED SHARES HELD BY RECONSTRUCTION FINANCE CORPORATION

Authors

Abstract

The Reconstruction Finance Corporation owned the entire issue of preferred stock of plaintiff bank The state statute putting a tax on stock of national banks was amended to allow the bank to be taxed directly and pass the tax on to its shareholders. A federal statute permitted states to tax, subject to certain limitations, all shares of national banking associations whose principal place of business was within the state. In a proceeding by the bank for the benefit of the Reconstruction Finance Corporation as well as itself to protest the collection of the tax, it was held that the shares of a national bank owned by the Reconstruction Finance Corporation may be taxed by the state. Baltimore National Bank v. State Tax Commission of Maryland, (U.S. 1936) 56 S. Ct. 417.

Recommended Citation

TAXATION-STATE TAX ON SHARES OF NATIONAL BANK-PREFERRED SHARES HELD BY RECONSTRUCTION FINANCE CORPORATION, 34 Mich. L. Rev. 734 (1936).
Available at: https://repository.law.umich.edu/mlr/vol34/iss5/15