Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1871-06-28
THE MERCHANTS TAX.
Present and Past Rates Compared
Interesting Facts. Hge

Present and Past Rates Compared
Interesting Facts. fe
In view of the action taken by the
Chamber of Commerce yesterday, an
explanation of the revenue system may
be of general interest. The law has
changed so often in the last few years
that very few even of the merchants
themselves could tell just how they are
taxed.
Previous to the 18th of January 1870,
there was tax on sales and imports.
This fell very heavy on those who fire.
quently turned over their stock, but
amounted to little or nothing on the
retail dealer who bought his goods here.
Early in 1870 the Chamber of Commerce
Sent an influential committee to Nash
vile, where they succeeded in the pas
sage of an important bill through the
Legislature which abolished the taxes on
imports and sales, and established an
entirely new system. The act was
passed January 18th, 1870, and was
hailed by our Wholesale merchants at
least as the harbinger of better times.
Sec. provides that merchants shall
pay an advalorem tax on capital in
vested equal to the advalorem tax on
other property. The advalorem tax on
other property at that time was twenty
cents on the one hundred dollars worth,
or two dollars on the thousand.
Section 5 of the same act says:
"Those reporting less than $4,000 of
capital shall pay license of $40; those
reporting a greater amount Of capital
than $4,000 shall pay on each $4,000 Of
capital so reported, or fraction thereof
$2O;" and this is in addition to the adj
valorem tax on capital invested as pro-
vided in section 2. This was favorable
to the wholesale dealer, but fell unequal
" upon the retail dealer, for the latter
had to pay the ten dollars license tax
even on a stock of fifty dollars, while
the merchant, with capital of five thou
sand dollars, paid only ten dollars on
that branch of the tax.
As long as the advalorem was no more
than twenty cents on the one hundred
dollars there was no loud complaining
at being taxed twice" as it is called.
The principle in the law then was the
same as now; but the advalorem has
gone up two hundred per cent. addi-
tional, and the license tax has gone with
it. For on the oath of January, 1871,
an act was passed fixing the adval orem
tax at sixty cents, and providing that
the license tax shall be the same as the
advalorem, provided that it shall never
be less than s.. This last clause is
slightly in favor of the small retail dealer.
From April 1870 to April 1871 the
county tax was half as much as the
State; but since last April the county
tax on merchants and privileges has
been equal to the State tax on the same.
Therefore the State tax is just three
times what it was last year; but the
county tax is equal to the State, which
makes the aggregate increase of both
taxes amount to the ratio Of four to one.
The burden Of these taxes will not be
felt perceptibly until next winter, the
season when the great bulk Of the mer-
chants tax is paid.
To illustrate the tax as il will fall due
after January "a, 1872: A merchant
reporting 500 will pay an GdrdlOrem
tax Of sixty cents, and license of So;
county tax the same. Total, $ll.20.
This is several dollars less than was
paid ON the same amount last year.
Case second: Take $4,000 capital
reported
Advoloron tax. at sixty cents--...........s240
License, the 2AO
Total for the $50
County the $50
State and county. the same.................$96O
These facts may be of interest to those
who are devising means to be relieved
of portion of the impending taxation.
The Wholesale liquor cases recently
carried up to the Supreme Court in
wolves the same question raised by the
Chamber of Commerce as TO an dd Ualo-
rem and a license tax on the same
stock of goods, and it is probable that
the decision in the liquor cases will
cover the case proposed by the mer-
chants, and thus save them much trouble
and the community a painful delay.
This brief statement, if carefully read,
will enable any one to comprehend the
present as well as the past system
whereby merchants are taxed. They