Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1843-05-25
The TAX BILL.

lstute has been tfansfrittsd {" ns f1F PsttSatfoA
by the Auditor the 5iate;- -
AUprroR's OFrlcE, May 10, 1913.
Tohe Commissioners cfa!s Revenue.
have received so many communica-
tons from commissioners Of the revenue
and others, suggesting doubts and difficult
ties il the construction a cert lin portions
/ Of tie revenue laws 81 last session, that
| consider IL indispensable 10 order 20 pro.
duce som thing like un fosmity Of action
on your part, TO aPpriss you Of the views
and opinions have formed upon the prin-
cipal POINTS which have been contfovert-
et. In arriving al these conclusions, !
have hal the benefit Of full and Tree con-
versati3ns with the attorney general, and
have consulted such other sources as were
likely TO shed g upon the Subject, but
! do not wish you TO understand me as
authoritatvcly expoundng the law, so as
to hinder the free and deibsra'e exercise
of your own judgment.
/. What constitute. lcaa Of money
scitain the meaning Of the la,o PAS gen
eral proposition. the interss, on bonds or
aoy other Obligations exec uted for the pur-
chase Of property, or for the performance
/ OF Dbor, is not taxable. But if after the
debt thus contracted is due and payable,
any arrangement be mado between the
debtor and creditor by which payment is
deferred sd, for example, additional Sc
curity b. taken, and new bond be eye
cuted carry ing interest lit seems to me
that 4 e debt is virtually and substantially
convert d into loan Of money, and the
interest received thereon taxable. lean
not discriminate bta cen this cass and
| the case Of creditor WHO having actual
! ~ received the amount Of his bond given
Tor property or labor, Immediately restores
il 10 the debtor as loan of money.
2. rs 10 the question Of interest gEcEIv.
Ed have expressed The opinion 10 ma.
ny commissioners n answer to private
communications, that t is not necessary
that the interest should have been receiv-
ed N money. 1.-THE creditor fenews ihe
b nj, including the interest, or if separ
ate bond be taken for this interest-or if
property or other tquivalen, be taken for
The interest in lieu OF money! contend
that to al intents and purposes the inter.
est will have been received and is there
fJie taxa5ie.
3. As 10 profits on purchased bonds or
Notes.-The actual amount of such pro-
fits consider as clearly taxable when
collected or received, or where the notes
or bonds are in some way settled or re-
newei as in the Csc Of ordinary interes,
bonds.
4. The terms ''intt rest received" would
no, only embrace the interest for single
year, but also all arrearages Of interest
received within the preceding y ar.
5. The interest ON the first 500 Of
money vested in bon1s or other sacuri.
| II is exempted from taxation. After es-
timating the interest or profits received on
all such loans or investments over 500
tbs commissioner should deduct oil inter-
est aud arrealages ofnterest from which
the taxpayer is in good faith indebted to
| oiherS--so that it is not necessary that he
should have paid it to the creditor
| proceeJ now to t ose provisions OF the
law which r,llte to monied iucome and
fees Of offices
/. The law will reach almost every
description Of office, employment, calling
or profession, where the lncoms IS not
derived from the use OF money, nor from
property - stocks, nor from mechanical
or manufacturing labor. Profits from the
use Of money suj The dividends Of stocks
are taxed under other and distinct claus s
| of The law. Neither rents nor the income
, from mercantile or agricultural Industry
would be en- braccd under tins head, be
cause all such income is derived from
! property, aud is taxed IN anoti er form.
2. In my circular flhe LIST of April,
| expressed the opinion that the terms
yearly income," should be construed TO
mean al the income derived during the
preceding yeor, from the offices and EN-.
ployments enumerated, no matter how ir.
rrgullrly the same may have been recev
ed, or from how many ditfoIen. sour Is.
a buokkeeptr or accountant for example,
who shall have been in the employment of
two or more mercantile houses, would he
as liable to a tax upon his aggregate re-
ceipts, as if he had received his whole
early compensation from a single IHdl-
vidual or ccpartnershlp.
5. Salaries or wages derived frcm two
or M r. offices or tmploymcnts should be-
added together, and S400 deducted from
he aggregate, leaving the residue TO be
taXei. believe have expressed an O.
plnion to two or three commissioners, that
f the income from ons of the Offices or
empoymenls consisted Of fe S, es dist n.
gui>hed from wages or salary, the duduc.
ton Of $500 should be separately Md
rom The lroi,s Of each emp,oymeot.-
Subsequent reflection, however, has in
dlced me IT, doubt whether the terms of
the law will warrant this construction.
a. Where the income If the office, cal.
Ing or profession, consists of lees, ! pre-.
sumo that all tie expenses necessarily in
cidrnt To such Office, calling or protest. n,
oald be first deducted. For example,
the wagrs or clerk hire paid by clerks Of
cour's 10 their deputies, and the commits,
ons paid for collecting their fees; tie
wages or compensation paid by u school
master 10 his ass stant; the amount paid
by deputy sheriffs for farming the sher-
iffaity: the sum actually dis5ursed by
inspectors of tobacco for cooperage, &c.
A. u