included within the parentheses, which were added by amendment of 1895.

Section Cited.

People v. Donnelly, 57 Cal. 146; Cottle v. Spitzer, 65 Cal. 460, 52 Am. St. Rep. 305; Security Sav. B. & T. Co. v. Hinton, 97 Cal. 220-223, 32 Pac. 3; Cal. & Nev. R. R. v. McCartney, 104 Cal. 616, 38 Pac. 448; Los Angeles v. Loan etc. Co., 109 Cal. 402, 42 Pac. 149; Sacramento Bank v. Alcorn, 121 Cal. 384, 53 Pac. 813.

Annotation.

Section Construed.-This section recognizes trust deeds as existing property. (Sacramento Bank v. Alcorn, 121 Cal. 379, 53 Pac. 813.) The definitions in this section must prevail in matters relating to taxation, whether they conform to the definitions used in the law for other purposes or not. (People v. Smith, 123 Cal. 75, 55 Pac. 765.)

Deposits in Savings and Loan Banks.-Section 3617 of the Political Code, subdivision 6, as amended in 1881, is a general law declaring the general policy of the state upon the subject of taxation of savings and loan corporations, and must control a city ordinance providing for the taxation of property "taxable by law," regardless of whether there is or is not any conflict between the terms of the charter and the ordinance and the provisions of the code; and a loan and savings bank doing business in such city is not entitled to deduct from its solvent, unsecured credits its unsecured liability to its depositors for moneys deposited for purposes of municipal taxation. (Security Savings Bank and Trust Co. v. Hinton, 97 Cal. 214, 32 Pac. 3. To same effect: Los Angeles v. Loan etc. Co., 109 Cal. 402, 42 Pac. 149.)

Right of Way of a Railroad.-An assessment of land occupied as a right of way by a railroad company, together with the track and all substructures and superstructures, without any separate assessment of lands and improvements, is void. (R. R. Co. v. McCartney, 104 Cal. 616, 38 Pac. 448.)

Taxation of Credits.-Solvent debts are liable to taxation. (People ex rel. Love v. Ashbury, 46 Cal. 523.)

Solvent debts are "property" within the meaning of that word as used in the Constitution, and are liable to taxation. (Savings and Loan Society v. Austin, 46 Cal. 415, citing 46 Cal. 527.)

Credits are not "property" in the sense in which the word "property" is used in the Constitution, and cannot be assessed for taxes, or taxed as property, even if secured by mortgage. (People v. Hibernia Bank, 51 Cal. 243, 21 Am. Rep. 704, citing 51 Cal. 370, 472.)

Choses in action are property subject to taxation, even when secured by mortgage. (Lick v. Austin, 43 Cal. 590.)

Corporation Laws-38

Courts have no authority to declare that solvent debts are not taxable, because to tax them might amount to double taxation. The mode and manner of assessing solvent debts is a matter of legislative discretion. (Savings and Loan Society v. Austin, 46 Cal. 415.)

Levying tax upon money at interest, as well as upon property mortgaged to secure it, does not present case of double taxation as against the mortgagee. (People v. Wharton, 38 Cal. 461. Cited: 43 Cal. 336, 13 Am. Rep. 143; 46 Cal. 492.)

Lender of money is not subjected to double taxation by reason of the statutory provisions requiring payment of taxes on money loaned by him, and on solvent debts due him over his own indebtedWhether said statutory provision results in imposing double taxation upon the borrower of money, when security, by way of mortgage or otherwise, is given does not arise in this case. (People v. McCreery, 34 Cal. 432. Cited: 38 Cal. 464; 46 Cal. 483.)

ness.

There are two plans or systems upon which savings banks may be organized and conducted, in one of which the depositors are the members, and the bank is merely their agent, and the members have an interest in the deposits and profits; while in the other plan or system the depositors are mere creditors, and have no interest in the profits, and each of these plans or systems accords with the provisions of the Civil Code respecting savings and loan corporations; and the language of section 3617 of the Political Code in respect to taxation is broad enough to include both classes of savings and loan corporations for purposes of taxation. (City of Los Angeles v. State Loan and Trust Company, 109 Cal. 402, 42 Pac. 149.)

A balance of money account, held on the tax day on general deposit in a New York bank by a corporation having its principal place of business in San Francisco, is taxable to such corporation in the city of San Francisco as a solvent credit. (Pacific Coast etc. Soc. v. San Francisco, 133 Cal. 14, 65 Pac. 16. Citing: Mackay v. San Francisco, 113 Cal. 392, 45 Pac. 696; Estate of Fair, 128 Cal. 607, 61 Pac. 184; Sav. & L. Soc. v. San Francisco, 131 Cal. 356, 63 Pac. 665.)

Taxation of Bonds.-Bonds of the state of California are personal property within the meaning of the term "personal property" as used in the revenue act, and are subject to taxation. (People v. Home Ins. Co., 29 Cal. 533.)

The bonds of the United States, issued in pursuance of the acts of Congress, are not subject to taxation. (People v. Home Ins. Co., 29 Cal. 533.)

The bonds of private domestic corporations secured by mortgage or deed of trust can only be taxed, under section 4 of article XIII of the Constitution, by assessing the value of the security as an in terest in the property encumbered for their payment. They cannot be assessed as mere personal debts or credits, and such an assessment is void. (Estate of Fair, 128 Cal. 607, 61 Pac. 184.)

Bonds of foreign railroad corporations owned by a resident of this state, or his executors, which are deposited without the state, but which are not held for management in the course of the permanent business of the owner in another state, are not to be classed with chattels having a local situs for the purposes of taxation, but, like ordinary credits, attend to the person of the creditor, and are taxable within this state as the domicile of the owner. The assessments of such bonds in this state depend neither upon the presence in this state of the evidences of debt, nor upon whether they are or are not negotiable in form. (Estate of Fair, 128 Cal. 607, 61 Pac. 184.)

A tax upon the bonds of a railroad and other quasi public corporations of this state secured by mortgages or deeds of trust, the encumbered property of which is required to be assessed at its full value to such corporation, is double taxation, forbidden by the Constitution. The case of Germania Trust Company v. San Francisco, 128 Cal. 589, 61 Pac. 382, affirmed. (Estate of Pichoir, 128 Cal. 615, 61 Pac. 1130.)

Bonds of railroads payable in the city of New York, which were the property of a deceased resident of this state, and were distributed by the superior court to trustees named in the will, are taxable at the domicile of the trustees; and where only one of the trustees is a resident of this state and the nonresident trustee has the bonds on deposit in the city of New York, in the joint names of both of the trustees, the bonds are taxable in this state only as to the undivided half thereof legally owned by the resident trustee. (Mackay v. San Francisco, 128 Cal. 678, 61 Pac. 382.)

The interest of the nonresident trustee in the bonds is not "property in the state" within the meaning of the Constitution of California, and cannot be taxed in this state. (Mackay and Dey, Trustees, v. San Francisco, 128 Cal. 678, 61 Pac. 382.)

The interest of the resident trustee in the same identical bonds which have been the property of the estate of the deceased owner, and which are on deposit in New York in the name of both trustees, is taxable in this state, and does not fall within the rule that where credits are in the possession and control of a local agent in another state, who holds them for the purpose of transacting a permanent business of investment and reinvestment therein, such credits have a local situs in that state. (Mackay and Dey, Trustees, v. San Francisco, 128 Cal. 678, 61 Pac. 382.)

Taxation of Bonds of Quasi Public California Corporations.-Under the provisions of the Constitution making debts secured by mortgage or deed of trust an interest in the encumbered property for the purpose of taxation, and that as to railroad and other quasi-public corporations, in case of debts so secured, their property shall be assessed at its actual value, without deduction on account of the debt secured thereon, bonds of a railroad corporation secured by mortgage of its property within this state are not assessable for taxation to

the holders of such bonds. (Germania Trust Co. v. San Francisco, 128 Cal. 589, 61 Pac. 178.)

The fact that the holder of railroad bonds secured by mortgage is taxed thereon but once does not necessarily prevent the taxation from being double. Double taxation does not necessarily consist in assessing the same property twice to the same person, but may con sist in requiring a double contribution to the same tax on account of the same property, though the assessments are to different persons. (Germania Trust Co. v. San Francisco, 128 Cal. 589, 61 Pac. 178.) A tax upon the bonds of railroad companies of this state, secured by mortgage upon their property, which is required to be assessed at its full value to such companies, is double taxation, forbidden by the Constitution. The case of Germania Trust Company v. San Francisco, 128 Cal. 589, 61 Pac. 178, affirmed. (Estate of Fair etc., 128 Cal. 607, 61 Pac. 184. To same effect: Estate of Pichoir, 128 Cal. 615, 61 Pac. 1130.)

CHAPTER III.

ASSESSMENT OF PROPERTY.

§ 3628. Franchises-Other taxable property.

§ 3629.

Contents of statement required by assessor.

3641.

§ 3663.

Property of firm or corporation to be assessed where situated.

§ 3664.

§ 3665.

Assessment of water ditches, toll roads and telegraph lines.
Agent of corporation, statement by to board of equalization.
Assessment of railway franchises and properties.

Sec. 3628, Pol. C. The franchise, roadway, roadbed, rails, and rolling stock of all railroads operated in more than one county in this state shall be assessed by the state board of equalization, as hereinafter provided for. Other franchises, if granted by the authorities of a county, city, or city and county, must be assessed in the county, city, or city and county within which they were granted; if granted by any other authority, they must be assessed in the county in which the corporations, firms, or persons owning or holding them have their principal place of business. All other taxable property shall be assessed in the county. city, or city and county, town, township, or district in which it

is situated. Lands shall be assessed in parcels, or subdivisions, not exceeding six hundred and forty acres each; and tracts of land containing more than six hundred and forty acres, which have been sectionized by the United States government, shall be assessed by sections or fractions of sections. Lands sold by the state for which no patent has been issued, shall be assessed the same as other lands, but the owner shall be entitled to a deduction from such assessed valuation in the amount due the state as principal upon the purchase price. The assessor must, between the first Mondays in March and July of each year, ascertain the names of all taxable inhabitants, and all the property in his county subject to taxation, except such as is required to be assessed by the state board of equalization, and must assess such property to the persons by whom it was owned or claimed, or in whose possession or control it was, at twelve o'clock meridian of the first Monday in March next preceding; but no mistake in the name of the owner or supposed owner of real property shall render the assessment thereof invalid. In assessing solvent credits, not secured by mortgage or trust deed, a reduction therefrom shall be made of debts due to bona fide residents of this state. En. March 12, 1872. Amd. 1880, 7; 1895, 307. Franchises subject to taxation: See sec. 3617, subd. 1, Pol. C. Railroad property, assessment of: See Const. Cal., art. XIII, sec. 10, and secs. 3664, 3665, Pol. C., post.

Legislative History.

The original did not provide for the assessment of railroads and franchises as above. The portion of the section above given is the same as the corresponding portion in the amendment of 1880.

Section Cited.

In relation to taxation of corporate property: S. V. W. W. v. Barker, 99 Cal. 38, 33 Pac. 735; San Francisco v. S. V. W. W., 63 Cal. 527; First Nat. Bank v. San Francisco, 129 Cal. 96, 61 Pac. 778; Lake County v. S. B. G. Min. Co., 66 Cal. 21, 22, 4 Pac. 876; Miller v. Heilbron, 58 Cal. 133.

Annotation.

Capital Stock.-Assessment upon the capital' of a corporation eo nomine, held to be valid. (San Francisco v. Spring Valley W. W., 54 Cal. 571. Cited: 54 Cal. 603; 63 Cal. 533.)

Franchise, Roadway, Roadbed, etc., of Railroads.-An assessment of land claimed and occupied by a railroad company as a right of way, together with the track and all substructures and super