New Orleans v. Citizens’ Bank, 167 U.S. 371 (1897)

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New Orleans v. Citizens’ Bank


No. 108


Argued January 15, 18, 1897
Decided May 24, 1897
167 U.S. 371

APPEAL FROM THE CIRCUIT COURT
FOR THE EASTERN DISTRICT OF LOUISIANA

Syllabus

By the Act of January 30, 1836, the Legislature of Louisiana exempted the capital of the Citizens’ Bank in New Orleans from taxation.

The two judgments of the District Court of New Orleans between the bank and the city, which are set forth in the opinion of this Court, hold that this exemption continued after the expiration of the original charter and during its extension, and as they were made upon identically the same facts and circumstances as those here presented, they are res judicata, conclusive upon the parties, and estop the city from attempting to enforce such taxes.

The exemption of the capital of a corporation from taxation does not necessarily exempt its shareholders from taxation on their shares of stock.

The claim of the bank to nonliability to taxation on property acquired by it under foreclosure of a mortgage is rejected without prejudice to the right of the state and the municipal authorities to claim a license tax, if imposed by law on the bank, and without prejudice to the right of the bank to assert any legal defenses to the payment of such tax.

The case is stated in the opinion.