United States Supreme Court Cases & Opinions

U.S. Supreme Court

Laurens Fed. S. & L. Assn. v. Tax Commission, 365 U.S. 517 (1961)

Laurens Federal Savings & Loan Assn. v.

South Carolina Tax Commission

No. 126

Argued March 2, 1961

Decided March 20, 1961

365 U.S. 517

Syllabus

Section 13 of the Federal Home Loan Bank Act, which exempts federal home loan banks and their "advances" from state taxation, bars a State from requiring a federal savings and loan association to pay documentary stamp taxes on promissory notes executed by the association in favor of a federal home loan bank to cover loans from the bank to the association. Pp. 365 U. S. 518-524.

(a) The immunity granted to "advances" of a federal home loan bank by § 13 of the Federal Home Loan Bank Act is broad enough to bar state stamp taxes on such a loan. Pittman v. Home Owners' Loan Corp., 308 U. S. 21. Pp. 365 U. S. 519-522.

(b) Section 5(h) of the Home Owners' Loan Act of 1933, which provides that no State shall tax a federal savings and loan association at a higher rate than it taxes other similar local mutual or cooperative thrift and home financing institutions, did not expressly or impliedly repeal § 13 of the Federal Home Loan Bank Act, which exempts "advances" of federal home loan banks from state taxation. Pp. 365 U. S. 522-524.

236 S.C. 2, 112 S.E.2d 716, reversed.

Page 365 U. S. 518