State v. Safe Deposit & Trust Co.

Briscoe, J., delivered the opinion of the Court. ⁵⁸² This appeal is taken by the State of Maryland, at the instance of the Comptroller of the Treasury, and involves a construction of certain sections of Article 81 of the Code, and subsequent Acts of the General Assembly of the State. The main question presented by the record, is when do State taxes assessed upon the capital stock of a corporation become due. It will be seen by section 84 of Article 81 of the Code, that the president or other proper officers of banks, and other incorporated institutions and companies chartered by this State or located and doing business therein, shall annually, on the second day of January, pay to the Treasurer of the State the State tax imposed upon the shares of capital stock of said bank or companies for the previous year. As the law then stood, the State tax on the capital stock of a corporation was payable by the express terms of the statute to the Treasurer of the State on or before the second day of January, after their levy.

But by the Act of 1890, chapter 244, it is provided, that if any corporation of this State from which State taxes shall be due and payable on the assessed value of its shares of capital stock shall fail or neglect to pay the same to the Treasurer of the State before the first day of November of the year for which such taxes have been assessed and levied ; such corporation shall for such failure and neglect forfeit and pay to- the State an additional amount of five per centum as penalty or damages, to be added to the State taxes so due and unpaid. And it further makes it the duty of the Comptrollers to add this penalty to the State tax, and to institute suit forthwith for the recovery of both the tax and the penalty, upon the failure of the company to .comply with the terms of the statute. It is obvious, then, looking to the object and purpose of the Act of 1890, chapter 244, that State taxes owing by corporations become due and are in arrear on the first day of November of the year for which they have been assessed and levied, and unless paid before that date are subject to the penalty prescribed by the Act. The Legislature would scarcely have imposed this penalty, ⁵⁸³ unless