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.
TAXATION-STATE TAX ON SHARES OF NATIONAL BANK-PREFERRED SHARES HELD BY RECONSTRUCTION FINANCE CORPORATION,
Mich. L. Rev.
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