Appeal Tax Court v. Gill

Boavie, J., delivered the opinion of the Court. The appellees in the Appeal Tax Court vs. Gill, et al., Trustees, insist that the bonds of the Baltimore and Ohio Railroad Company, and the Northern Central Railway Company, are exempt from taxation, because they represent the share or part of certain mortgages on the property of the aforesaid railroads, held by the appellees ; and also that the other property assessed consists of stocks and bonds of institutions and corporations, not incorporated under the laws of this State, not doing business in this State and not having a situs in this State, and not having any of their property in this State; and also, that they are incorporated by, and situated within the jurisdiction of other States, and are liable to, and pay their taxes to the same. By the Act of 1876, ch. 260, entitled “An Act for the general valuation and assessment of property, in this State,” “all investments in private securities of every kind, nature and description, belonging to residents of this State, except mortgages upon property in this State, and the mortgage debts respectively secured thereon, and all property of every kind, etc., shall be liable to valuation, assessment, and taxation, except as provided in the next ensuing section of this Act.” It is not alleged, that the bonds for which exemption is claimed, are secured by mortgage, upon property within this State; but, it is admitted, that the mortgages, securing the same, include property both within and without the State. Without inquiring into the reason of the discrimination between mortgages on property within the State, and those on property without, it is sufficient to say, the bonds assessed in this case do not come within the terms of the exemption; and it is an unyielding rule of law, that exemptions "claimed under legislative Acts, should be rigidly construed and established beyond rea ³⁹⁶ sonable doubt. 5 Gill, 237 ; 6 Gill, 292 ; County Commissioners of A. A. Co. vs. A. & E. R. R., 47 Md., 612 .

Since it has been decided by this Court, in Appeal Tax Court vs. Patterson, ante p. 354, that the State