ART. 81] STATE TAX COMMISSIONER. 1865

State tax commissioner.

Under the system of corporate taxation prescribed by this section and
sections 151. 153. 163 and 165, the powers and duties of the tax commis-
sioner relate exclusively to making and returning the assessment of the
shares of stock, and he is to make out but one assessment and must certify
that to the comptroller for state taxation and to the county commissioners
and appeal tax court for local taxation. This section referred to in constru-
ing section 163—see notes thereto. Schley v. Lee, 106 Md. 397.

While this section contains no specific directions as to the manner in
which the value of stock is to be ascertained, yet under section 15 of the
Bill of Rights, the commissioner should ascertain the actual value of the
stock; that is, ordinarily, what it will bring at a fair sale in the market. The
"book value" of stock is not in itself a proper criterion. Schley v. Mont-
gomery County, 106 Md. 410. And see American Coal Co. v. Allegany County,
59 Md". 194.

The tax commissioner should not only certify the number and value of the
shares of stock held by residents, but by non-residents also, the latter
being taxable as well as the former. The certificate of the tax commissioner
to the appeal tax court, held defective in form but sufficient in substance.
American Coal Co. v. Allegany County, 59 Md. 192; Baltimore v. Baltimore,
etc., R. R. Co., 57 Md. 35.

As to when the tax commissioner is only a ministerial officer, and his
limited powers, see Baltimore v. Canton Co., 63 Md. 233; Schley v. Lee, 106
Md. 394.

County and municipal taxes.

Municipal taxes upon corporate stock can be levied only upon the valua-
tion thereof by the tax commissioner under this section, the municipality
having no power to Increase or diminish such valuation. Hence, a notice
from the city to the shareholders of an increase in assessment, is nugatory,
the corporation being treated as representing the shareholders. How the
provision of this section relative to the shares being assessed against the
shareholders may be complied with. Clark Distilling Co. v. Cumberland, 95
Md. 471.

This section construed in connection with sections 153 and 159, means that
county and municipal, as well as state, are to be assessed as of January first.
Hence, where corporate stock is held by non-residents on January 1. 1905.
and on February 1, 1905, it is transferred to residents, the stock Is taxable
for 1905 where the corporation has its principal office, and not where the
holders reside. (Section 159 was amended by the act of 1906. ch. 84). Balti-
more City v. Chester River, etc., Co., 103 Md. 404; Union Trust Co. v. Belve-
dere Co., 105 Md. 525.

As to the county and municipal taxation of property owned by railroads,
see sec. 193; see also. sec. 216.

Generally.

Taxes on corporate stock may be recovered in an action at law against the
corporation, and it is (by virtue of the statute), the duty and obligation of
the corporation to pay the taxes without regard to whether dividends are
paid to the stockholders, and although the corporation has become insolvent
and gone into the hands of receivers. Union Trust Co. v. Belvedere Co., 105
Md. 522; Carstairs v. Cochran, 95 Md. 503 (affirmed In 193 U. S. 10); Hull v.
Southern Development Co., 89 Md. 9; Casualty Company's Case, 82 Md. 564;
American Coal Co. v. Allegany County, 59 Md. 190.

The property of a corporation, however, can not be levied on and sold for
taxes. Hull v. Southern Development Co., 89 Md. 9.

Taxes on the stock of a corporation are not due by the corporation but by
the individuals who own the stock, the corporation for the sake of con-
venience being made the agent of the state and county to collect the tax. and
being entitled to charge the same against the stockholder. This section
referred to in declaring invalid the act of 1900. ch. 579, purporting to apply
to Allegany County. Baltimore v. Allegany County, 99 Md. 5; Hull v. South-
ern Development Co.. 89 Md. 9; Crown Cork and Seal Co. v. State, 87 Md.
696; United States Power, etc.. Co. v. State. 79 Md. 69: American Coal Co. v.
Allegany County, 59 Md. 190.