Democratic Sentinel, Volume 2, Number 9, Rensselaer, Jasper County, 12 April 1878 — SPECIAL DEPOSITS IN BANKS. [ARTICLE]

SPECIAL DEPOSITS IN BANKS.

A QuMtlon m to Thoir Liability to Taxation in Certain •"•Opinion ot the State Auditor. The following correspondence on the subject of taxation of special deposits in banks will be found of public interest: Fowler, Ind., April 4, 1878. Hon. E. Henderson, Auditor of State, Indianapolis, Ind.: Dear Sir —At the last session of the Newton circuit court a judgment was taken against one Edward C. Sumner, of Benton county, on change of venue to Newton county, for the sum of i $175. Said judgment was taken as a j fine imposed on said Sumner for fail- ) ure to list certain money for taxation. ' During tne trial the following facts were developed: That some tim? in September or October, 18G2, the said Sumner placed on special deposit at the National State bank of Lafayett“, Ind., the sum of twenty-one thousand dollars ($21,000) in silver coin; that the said coin remained on deposit as | the property of said Sumner until March 4, 1874, and on last said date the said Sumner sold the said money to one William B Fowler, his (Sumner's) son-in-law; that said Fowler left said money on deposit in said bank up to the time of said trial; that ! neither ;he sai l Sumner nor the said ) Fowler ever listed the said money for taxation while it remained on deposit ) at said bank. The money was not i placed to the credit of either Sumner or Fowler on the books of said bank, j but merely lay in the vaults of the same. Now, what I desire to know is this: ' Can I charge each of said parties with taxes on said amount of money on ; our duplicate for 1877 to an amount i equal to the taxes, penalty and interest on said money for the years it was owred by them? Please send irst.ruc iot s how to proceed in the pr - rn l ses, as it is rather an tinu ual proceeding. and Ddo not like to under- : t»Ke it withaut I am, respectfully yours, Jamks S. Bradley, Auditor Benton county. the decision. Indianapolis, April 8. i Jas. S. Bradley, Esq , Auditor of Ben- I ton County: Dear Sir: Yours us the 4th inst. in ) reference to E. C. t-umner’s failure to : report certain money, etther in posses- i sion or depo:it with banks. Is subject ' to taxation, unless it be greenbacks, and can only escape by perjury. As a | special deposit and not appearing up- I on the bank books, it is money in possesssion and must be reported for ) taxation. If Mr. Sumner sold his mo- ■ ney to Mr. Fowler and it remained on I special deposit, it would be taxable to ) Mr. Fowler, and Sumner would be taxable on Mr, Fowler’s obligation or proceeds of the sale. This money, in my judgment, is liable for taxation each year since it was placed in the bank, and you are legally authorized to place it on the books as delinquent taxes in the aggregate, adding 10 per cent, penalty for each current year’s i taxes, together with 6 per cent, inter- i est compounded annually. Very re- i

spectfully,

E. HENDERSON,

Auditor of State.