Baldwin v. County Commissioners

Boyd, J., delivered the opinion of the Court. A bill in equity was filed by the appellant seeking to restrain the collection of certain taxes claimed by the appellees to be due. The appellees having answered, the cause was submitted to the Court below on bill and answer and an agreed statement of facts. Those material to the questions involved in this appeal are that on November 15, 1879, Christopher C. Baldwin was appointed guardian of Columbus C. Baldwin by the Orphans’ Court of Washington County, and he settled a number of accounts in that Court— the last on April 15, 1884, showing a balance in his hands of $49,340.09.

Of that amount $11,700.41 were received by the guardian as his ward’s distributive share from the estate of James Dixon Roman, Jr., which was settled in the Orphans’ Court of Washington County, and $32,285.44 from the estate of Louisa M. Roman, which was also settled in that Court. The record is silent as to the balance, which may have been made up from the income, as it was probably not all used in the support of the ward, but that is immaterial. Christopher C. Baldwin was succeeded by R. W. Baldwin, who settled six accounts, and his administrator on January 19, 1892, settled another, showing a balance of $57,343.50 in his hands. He having died the appellant was appointed guardian in his place on August 21, 1891, and he settled an account September 23, 1892, showing a balance of $60,059.29.

It is admitted that the appellant and his ward both reside in New York, and were residents of that city at the time the returns were made by the Register of Wills, as hereafter referred to, and when the taxes in controversy were levied, and that the ward became twenty-one years of age on January 6, 1893. On the first day of March, in the years 1893 and 1894, the Register of Wills made his returns to the County Commissioners of Washington County, showing that the sum of $44,856.00 was in the hands of this guardian liable to taxation and the levy was made on the first day of June in each of those years. It is also admitted that the property ¹⁵⁶ and estate consists of stocks and bonds of corporations organized and located outside of the State of Maryland of the aggregate value of $44,856.00. The bill was filed February 12, 1895, and on February 15, 1895, the appellant settled another account in the Orphans’ Court showing a balance due his ward of $63,381.56, but still did not settle a final account.

We are thus called upon to determine whether this property is liable to taxation' in Washington County, notwithstanding the non-residence of both guardian and ward. How far the fact that the ward was of age when the returns were made and the taxes levied can affect the question will be considered later. Section 9 of Art. 81 of the Code provides that “ The several Registers of Wills in this State shall annually, on or before the first day of March, return to the County Commissioners, or Appeal Tax Court, a summary account of all property that shall appear by the records of the several Orphans’ Courts to be in the hands of each executor, administrator or guardian, as such; and all such property, if not before assessed, shall then be assessed; and every executor, administrator or guardian shall be liable to pay the taxes levied thereon, and shall be allowed therefor by the Orphans’ Court in his account,” etc. The returns of the Register of Wills of Washington County were made under the provisions of this section and the levies were made by the County Commissioners on the property thus returned. It being practically conceded that the property assessed is of such character as would be liable to taxation if the guar7 dian and ward were residents of Washington County, we will not stop to discuss that question.

It must, of course, be admitted that the situs of property of this kind, for the purpose of taxation, is ordinarily at the domicile of the owner, but the Legislature has the power to fix a different situs, provided of course there be no conflict with some provision in the Constitution. 1 Desty on Taxation, 97; Cooley on Taxation, 373. ¹⁵⁷ We have in this State some statutes which do determine where property shall be deemed to be situate for the purposes of taxation. For example, section 131 of Art. 81 of the Code provides where the stock of certain domestic corporations owned by non-residents shall be deemed to be situate. So, by section 9 of Art. 81, above quoted, the Legislature has fixed the place where personal property in the hands of the guardian shall be taxed. When it requires the Register of Wills to make the returns to the County Commissioners, it means of course that the Register of Wills of each county shall make the returns to the commissioners of his county, and it provides that “ all such property, if not before assessed, shall then be assessed,” and ■“ every executor, administrator or guardian shall be liable to pay the taxes thereon.” It does not say every guardian who is a resident of this State, or every guardian whose ward is a resident of this State, but the language used is at least broad enough to apply to every guardian who has been appointed as such in this State, and includes all property of such guardian — that is, of course, all property of such character as is taxable in this State.

It fixes the situs of the property in the county or city where the guardian was appointed and it matters not where the person who is guardian may reside. The office of guardian, so to speak, is fixed at the county where the appointment is made. If that be not so, then if this ward was a resident of Washington County, his personal property would escape taxation there because his guardian lived in New York. That would seem to be contrary to the manifest object and intention of the section of the Code above quoted.

In the case of Bonaparte v. State et al., 63 Md. 465 , this same section was under consideration, and this Court held that although Mr. Bonaparte, the executor of Mrs. Patterson, lived in Baltimore County, yet he was liable to Baltimore City for taxes on bonds and stocks of his testatrix, because letters testamentary had been granted to him by the Orphans’ Court of Baltimore City. It was there said in ¹⁵⁸ answer to the suggestion of the executor, that because he was a resident of Baltimore County he was taxable there and nowhere else, by reason of the legal title to the intangible property being in him; “ that he held such legal title is true; but he held it in the special character of an officer of the law for the specific and temporary purpose of the administration of the property under the supervision and direction of the Court from which he received letters testamentary. The domicile of the testator when living determines the situs of his personal property of an intangible nature, not permanently located elsewhere, for purposes of taxation, and his place of domicile at the time of his death determines the place of administering his estate. The situs of the personal property, generally speaking, and the residence of the administrator, for the purposes of administration, place them in legal contemplation in the city or county of the Court exercising jurisdiction.

The personal property, therefore, of an intangible nature, not permanently located elsewhere, such as bonds and stocks, must be deemed to remain within the jurisdiction of the Court pending the settlement of the estate, and be there liable to taxation. When distribution has been made, and the fact of its transfer has been communicated to the tax authorities, the administrator’s or executor’s liability to pay the taxes upon it, of course, ceases.” The Court then quoted the section of the Code above referred to. Now, if it be true that the situs for taxation of property in the hands of a resident executor (and of course the same must apply to an administrator or guardian) is where he was appointed and not where he resided, how can it be consistently said in this case that the property cannot be subject to taxation because the guardian resides beyond the State, especially when we remember section 51 of Art. 3 of the Constitution, which says that “ The personal property of residents of this State shall be subject to taxation in the county or-city where the resident bona fide resides for the greater part of the year for which the tax may or shall be levied, and not elsewhere, except goods and chattels per ¹⁵⁹ manently located, which shall be taxed in the city or county where they are so located.” There was much more reason for contending that the executor, Mr. Bonaparte, who was a resident of Baltimore County, could not be taxed in Baltimore City under that constitutional provision, than there is for the contention in this cas, as there is no such provision applicable to non-residents, yet this Court held that in contemplation of law Mr. Bonaparte as executor had his residence where he was appointed executor, and it was not material where he, as an individual, in point of fact lived. In contemplation of our statute, the officer of the law known as the guardian of Columbus C. Baldwin is in Washington County for the purpose of dealing with, accounting for and holding the property of his ward.

The individual holding that office may be domiciled in that county or in New York, but the law does not concern itself about that. There are a number of provisions in our testamentary laws for the appointment and control of guardians by the Orphans’ Courts of this State. They not only provide for the appointment of guardians of resident infants, but by section 203 of Art. 93 of the Code express provision is made for the appointment of guardians of non-resident infants who have no guardians where they reside, but have property in this State. Can it be doubted that such guardians are subject to the same