United States Supreme Court Cases & Opinions

U.S. Supreme Court

Hills v. Exchange Bank, 105 U.S. 319 (1881)

Hills v. Exchange Bank

105 U.S. 319

Syllabus

1. Supervisors v. Stanley, supra, p. 105 U. S. 305, cited and approved.

2. A national bank may, on behalf of its stockholders, maintain a suit to enjoin the collection of a tax which has been unlawfully assessed on their shares by the state authorities.

3. Where, under the statute of New York, such stockholder has presented to the proper board of assessors his affidavit, by showing that his personal property subject to taxation, including such shares after deducting therefrom his just debts, is of no value, and they refuse on his demand to reduce the assessment of the shares, an injunction should be awarded to restrain them from collecting the tax.

4. Where, in a suit by the bank, it is entirely clear from the proofs that all affidavits and demands of the other stockholders for a deduction from the assessed value of their respective shares by reason of just debts which they owe would, for purposes of taxation, be disregarded, and the assessors have evinced a fixed purpose to reject every such deduction, this Court, in reversing the case, permits an amendment of the pleadings to allow each stockholder to show the amount of the deduction to which he is entitled.