provisions of this article and in conformity with all laws relating to revenue and taxes and not embraced in this article.

Valuation and Assessment.

1904, art. 81, sec. 2. 1888, art. 81, sec. 2. 1860, art. 81, sec. 2. 1841, ch. 23, sec. 1. 1852, ch. 337, sec. 1. 1874, ch. 483, sec. 2. 1880, ch. 122. 1888, ch. 242. 1890, ch. 491. 1892, ch. 704. 1896, ch. 120. 1896, ch. 143. 1900, ch. 320. 1904, ch. 212.

2. All interests, shares or proportions owned by residents of this State in all ships or other vessels, whether such ships or other vessels be in or out of port, are and shall be valued and assessed for the purpose of State, county and municipal taxation to the respective owners thereof in the county or city in the State in which said owner or owners shall respectively reside, and such respective owners shall pay the taxes thereon. All real properties in this State belonging to any bank incorporated under the laws of this State or of any other State, or belonging to any national bank located in this State, or to any company or corporation incorporated by or under the laws of this State, or of any other State, or under the laws of the United States, or of any territory, or under the laws of the United States relating to the District of Columbia, or belonging to any joint stock company doing business in this State, are

tels held by the company in Maryland (Art. 81, secs. 153-165). This total value of the company was divided by the number of shares outstanding, and each stockholder (not the corporation) was assessed with the value, as thus found, of his shares (Art. 81). Although the tax was assessed against the stockholder, the corporation was made the collector of the tax (Art. 81, sec. 1620), The full State rate was assessed against the shares or shareholders for State purposes, and the rate of the tax for local purposes was the tax or rate prevailing in the various political sub-divisions in which the several stockholders lived (Art. 81).

Bonds, certificates of indebtedness or evidences of debt in whatever form issued by public or private corporations incorporated by the laws of this State and not specially exempt from taxation, were assessed against the owners thereof in the county in which they lived, and were taxed for State purposes at the full State rate of taxation or property generally, and were also taxed for local purposes at a fixed rate of thirty cents for every hundred dollars in value of the securities (Art. 81, sec. 214). This tax, both for State and local purposes, was collected by the local taxing officials (Art. 81, sec. 24).

For

There are special taxes and licenses imposed on domestic corporations. licenses see Article 91, entitled "Licenses." For the special taxes see the subject of "Gross Receipts" or "Gross Rceipts Tax," in this Article.

Foreign corporations doing business in Maryland were subject to taxation in the same manner as is an ordinary individual, plus certain franchises or gross receipt taxes (Art. 81, sec. 97). Thus foreign corporations were assessed and taxed on the real estate in the same manner as were domestic corporations as

and shall be valued and assessed for the purpose of State, county and municipal taxation as the property of such bank, company, corporation or joint stock company, and such bank, company, corporation or joint stock company shall pay such respective taxes thereon. All money belonging to residents of this State which shall be the proceeds of the sale of stocks, bonds or other property disposed of for the purpose of evading and escaping taxation, all shares or interest in any joint stock company, and all shares of stock in any bank incorporated under the laws of this State, or any national bank located in this State, or in any corporation incorporated under the laws of the State shall be valued and assessed for the purpose of State, county and municipal taxation to the owners thereof in the county or city in this State in which said owners may respectively reside; the taxable value of such shares shall be ascertained and determined and the taxes thereon levied and collected as is now or may be hereafter provided by law.

All personal property in which any resident of this State has an equitable interest with the legal title to the same in some

sessed and taxed on the real estate. They were assessed and taxed on their personal property as are individuals assessed and taxed, that is to say, in the same manner as they are assessed and taxed for their real estate. This covers both the tax for local and State purposes, the manner of collecting the tax and the rates of taxation. In addition thereto, they were required to pay a small annual franchise tax (Art. 81, sec. 95.)

No taxes are assessed against foreign corporations other than those above stated, but the stockholders of foreign corporations and the holders of the securities, as bonds issued by them, are subject to taxation (Art. 81, sec. 214). Bonds, certificates of indebtedness or evidences of debt issued by foreign corporations, public or private, and held by residents of Maryland, were assessed and taxed in the hands of residents of this State (Art. 81, sec. 214). The manner of col lecting the tax and the rates of the tax were the same as above outlined as to the taxation of bonds issued by domestic corporations and owned by residents of this State. The shares of stock of foreign corporations held by residents of the State of Maryland were assessed in the same manner and under the same terms and conditions as are the bonds, etc., issued by foreign corporations, and owned by residents of the State of Maryland (Art. 81, sec. 214).

The first and most important change brought about by the Acts of 1914 is that embodied in Chapter 324, as now inserted in this publication as sections 88A to 88F of Article 23. This Act provides that the ordinary business corpora. tion shall be assessed and taxed as a natural person resident in this State is assessed and taxed, except that the company shall, in addition to the taxes payable by a natural person under the same circumstances, pay a small annual franchise tax. The term "ordinary business corpcration" is defined in section 88B, and the amount of the small annual franchise tax is set out in section 88D of the same Article. The amount of the bonus tax payable by a corporation in case of an ordinary business corporation as distinguished from other companies is set out

other person or corporation who is a non-resident shall be valued and assessed for the purposes of State, county and municipal taxation to the equitable owners thereof in the county or city in which he, she or it resides, and such equitable owner or owners shall pay the taxes thereon.

All shares of stock or shares in any bank other than a national bank, or in any company or corporation incorporated by or located in and doing business in any other State or the District of Columbia, or in any territory or foreign country owned by residents of this State, shall be valued and assessed for the purposes of State, county and municipal taxation to the owners thereof in the county or city in which said owners may respectively reside. All bonds made or issued by any State or District of Columbia or territory, or by any corporation whatsoever belonging to the residents of this State, all investments in private securities of every kind and description belonging to the residents of this State, the real property located in this State and the personal property owned by any corporation in

in section 88A of said Article. Taxation upon corporations other than the ordinary business corporations remain the same as heretofore.

The next important change brought about by the Acts of 1914 is that of Chapter 43, codified in this Article as section 4A. This chapter exempts from taxation the bonds, stock, certificates of indebtedness or other obligations issued by the State of Maryland, or by any county, city, municipal corporation or other political sub-division of the State.

Another important change brought about by the Acts of 1914 is found in chapter 214, codified in this Article, as section 411, which makes the State rate of taxation against the resident holder of bonds and other securities issued by any corporation of this State, or any foreign corporation, and against the resident owners of stock of foreign corporations a fixed rate, the same being fifteen cents on every hundred dollars in value, so that no longer does the rate as to these bonds or securities of both foreign and domestic corporations or stock of foreign corporations vary in accordance with the variations in the general tax rate for State purposes.

The final important change in the laws pertaining to taxation of Maryland as passed at the Session of 1914, was that made by Chapter 841, codified in this Article as sections 233 to 246, inclusive. This chapter created the State Tax Commission, and did away with the office of State Tax Commissioner, who, subject to certain powers of the Board of Public Works, had been the general tax officer of the State. The Commission was given, with other additional powers, the powers heretofore exercised by the State Tax Commissioner, and the Chairman of the Board was designated as the one to act, where heretofore the State Tax Commissioner was, in a few instances, personally required to act. All references, therefore, or mention of the State Tax Commissioner, must be construed now to refer to the State Tax Commission.

The old laws pertaining to taxation, except as herein stated, have not been materially changed. For the provisions of the Constitution pertaining to taxation. see Article 15 of the Declaration of Rights.

corporated by this State not having a capital divided into shares, or having shares of capital stock which are wholly or in part exempted from taxation by this State when such real or personal property so owned by said corporation is not protected from taxation by the exemption of said shares of stock from taxation, shall be valued and assessed for the purpose of State, county and municipal taxation to the owners thereof in the county or city in which such owners may respectively reside; all certificates of indebtedness or evidences of debt in whatever form made or issued by any State, territory or by the District of Columbia, or by any public corporation or by any foreign country owned by residents of this State, shall be valued and assessed for State, county and municipal taxation to the owners thereof in the county or city of this State in which such owners may respectively reside.

The property, real and personal, of each and every railroad company in this State working its road by steam power shall be valued and assessed for county and municipal purposes in the same manner as the property of individuals may be valued and assessed under this article. The shares of capital stock of national banks located in this State and of all other corporations incorporated under the laws of this State shall be valued and assessed to the owners thereof residing in the City of Baltimore and in the several counties of this State at the same rate at which the same have been or shall be valued by the State Tax Commission for the year 1896; subsequent valuation of said stock shall be made in the manner now or hereafter provided by law; and it shall be the duty of the State Tax Commissioner to furnish the assessors in the City of Baltimore and of the several counties with a copy of the valuation so made of the shares of capital stock of each of such banks and each and every of such corporations of this State for the year 1896; and the said assessors shall record in a separate book all valuation and assessments of all shares of stock of all corporations incorporated under the laws of this State having a capital stock, whether the same be divided into shares or not, together with the names and residences of persons having an interest therein, the amount of such interest; and upon the completion of the assessment of all the taxable property in any county of this

State or any assessment district of Baltimore City, said book shall be delivered to the State Tax Commissioner for his information and guidance in the discharge of his official duties; and the valuation and assessment of said shares of stock shall not be returned by the said assessors to the board of county commissioners acting as boards of control and review for the several counties, and the boards of control and review of Baltimore City. All bonds and certificates of indebtedness bearing interest, issued by any railroad or other corporation of this State secured by mortgage of property wholly within this State, belonging to residents of this State, shall be subject to valuation, assessment and taxation to the owner or owners thereof, in the same manner as like bonds or certificates of indebtedness bearing interest and secured by mortgage of property partly in this State and partly in some other State or States, are now subject to valuation and assessment under the laws of this State. All other property of every kind, nature and description within this State, except as provided by Section 4, shall be valued and assessed for the purpose of State, county and municipal taxation to the respective owners thereof in the manner prescribed by this article; provided nothing contained in this section or article shall repeal, modify or affect Sections 91-93 relating to the taxation of savings banks, or Sections 218228, both inclusive, relating to the taxation of distilled spirits.*

1904, art. 81, sec. 3. 1888, art. 81, sec. 3. 1882, ch. 460.

3. All certificates of indebtedness or evidences of debts in whatever form made or issued by any State, territory, county, public corporation or foreign country shall be subject to valuation and assessment to the owners thereof in the county or city in which such owners may respectively reside

See the general note to Article 81, on "Revenue and Taxes." Baltimore City vs. Allegany County, 99 Md. 1, and Article 39 of the Constitution, section 51. The term real estate, as used in this section, includes for the purpose of taxation the special franchises as exercised in the public highways by public service companies, the same being considered easements. Consolidated Gas Co. vs. Mayor and City Council of Baltimore, 101 Md. 541; same case, 105 Md. 43; United Railways Co. vs. Baltimore, 111 Md. 264.

† See general note to Article on "Revenue and Taxes," and section 214 of this Article.