The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-02-18
Senate Hill No. 20, PropOstnE = saA -
TAX ON Elauors Or tho atate.

O4R
Wiliyou publish the follow ing sections Of
senate bib No.tf5, under whirhit u pro-
n,.sed to mise on consampti on In the state
Of g5O0. 0eO gallons Of distilled spirits thirty
cents stamp. ia K. or S75oUUg, aud to that ex-
tent preseYe The credit of the State Without
putting any additional burdens on the ianas!
The purpose of the bill Is to use the !. whole,
sale dealers as an agency to collect TINS lax
for the State, land at the same time 10 tnro"
over their stocks the bonded. warehouse s7s'
tenn, which will enable them to pay the tax
with one hand and receive the SINE IRON
their customers with the other, thus pre-
venting any hardship on thcmi in the shape
| of advances. &c.
The 1st section shows that the taX IS Iala
on the business Of wholesale dealing, on Tue
gauge or wine gallon if below proof, ana On
| the proof gallon for all spirits ut ana ABOVE
that degree.
| The I'd section defines what shall be
wholesale dealer, and shows tnat distii.e.s'
rectifiers, and importers as such are not III.
cluded in the classes whose occupations aie
| to be taxed.
The last clause Of this section meets tue
view which has presented more difficulty 10
the Legislature than all others-hoW 10 pre-
vent consumers from going out of the Sua!e
to purchase their liquors, and thereby evaue
| her revenue laws on this subject. Wthis
their right by this clause is fully recognlzeu
| TO import liquor in the State, they are
ouired in five days after it reaches Tue pu,n51
where il il to be consumed to DE sIalnpeu
9TH Virginia stamps, otherWi the party -
made a wholesale dealer and piaceu un"''
The ncnalties of the bill for its Vioiatioh' a.,
| This right of the State 10 resulate lug
trade or importation between helsell ano
| bcr sister States is fully recognlZeu III t"o
| cases which went from Alao S, " ' ieeo gu
,'.on,a Court of the United States IN IS6S-
RMI e,nE 80. Parbam aud Hinson Us. Lott
eNT"iiano Reports. The last case was very
onrI, y similar tax on the part Of the State
n as A i,lama of soc. per gallon on all that
W. "oS made or imported 10 that State from
o,her States, This stamp liquor bill is as
little amenable to criticism on account of
the limitations Of the State Constitution, as
If is to those of the Federal Constitution.
Under article 10. "Taxation and Finance"
the 18th section gives the Legislature power
to lay license-taX on all sales ofardent spirits:
also, to levy license on any "other busi-
ness which cannot be reached by an ad Udto.
rcn, system" This clause has been underj judi
ca construction of our Court of Appeals In
Lewelen Sergeant Us. Lockharts, 81 Graf
tons Reports, where Judge Moncure, deliv-
ering the opinion of the court, said that it
was designed to confer entire discretion on
the Legislature TO determine what business
could be reached By this ad Udloren system.
And that the mere fact that the capital en-
gagged in the business was taxed did not
prevent the Legislature from levying tax
in shape of license on same business. In |
other words, this clause opens up an unde-
fiued field of discretion to the Legislature
on this subiect-license taxation.
In the exercise Of this discretion the Leg
islature can determine whether buying and |
selling is q business in the intendment of the
Constitution which cannot be reached by the
dd Udlorenl system, or whether buying or
selling or buying and consuming, especially |
when that buying and conSumingls intended
to cyade the revenue laws and iDfict an in
Jury on The community and all honest dealers
in spirits within the Commonwealth.
It will not be denied that the Legislature
has the entire legislative power which resides
in the people Of this Commonwealth, except
where it is restricted by constitutional limi-
tations, and does not derive its power to
legislate for this people from the State Con-
stltution, as the Congress of the United
States does from the Federal Constitution,
which confers all the powers which that
body can exercise, which are limited,
Spec1QHy GeJsned, anu HeIe9uteH'
II, as has been shown, it is not amenable
TO any Limitation of Federal or State Consti-
tuition, it is clearly within the power of the
Legislature to pass sucha bill. Its, moreover,
clearly within that vast mass Of underlined
po,Cers called police po,rers Of the State to
restrict the rights of her citizens ia tho con.
sumption Of ardent spirits; so that they can.
not evade the rights Of the community and
those who have purchased this privilege of
b,rytng and dealing in the same; and this,
too, under thst legal maxim of " Sic utere
mo ct alienusl non laeddS."
If this be so, then the various clauses of
the bill have provided amply for contiung
the consumption Of all cllsSes In this State
in ardent or distilled spirits to those which
have been stamped under the revenue Laws.
Concede this, and no class OF her liquor mer-
chants can possibly be injured, whatever
amount OF tax the State chooses TO exact.
1t has been objected that this bill will de-
sroy the sale Of our merchants in States
south Of US. The 22d section shows that
this is not so; that parties oatsde OF the
Slate can deal with our merchants as they
did before the passage of this bill, because
the liquor bought by them can be shipped by
our wholesale houses out Of the State in
bond, which does not require the prepay
ment Of the stamp-taX.
The 25th section Of the bill repeats that
odious tax of five per cent. on sales of retail
dealers which is so Objectionable TO this large
class of liquor mel chants, requiring of them
the disclosure of their business under oath
to those competing with them in the same
community. The bill is highly advantageous
TO this class, who number over 1000 in the
State.
An increased taxation on spirits being de-
termined on by the Legislature, the mode
recommended by some Of these wholesale
dealers in lieu Of the stamp bill will proba-
bly, raise 100000 by an increase Of the spe-
cifc license-taX, falling mainly on the more
numerous classes Of retail-dealers and ordi-
nary-keepers. Without giving them that
protection against the competition of Balti-
more, which the Senate bill No. Is does, it
should be recollected that Baltimore's trade
area extends almost over the entire north
ern half Of the State. The liquor-trade of
| Virginia could therefore better submit to
tax of $4,000, with the protection
of that bill, than the 100000 proposed
| to be levied under the special license
| tax. Under one system perfect equality
is secured with Baltimore in the trade with
North Carolina and other southern States,
and perfect guarantees against the con-
sumers going out the State to purchase their
supplies without having Virginia stamps
glazed on such before consumption In the
Site.
The following figures will show the pro-
duction Of spirits in the United States for
the last fiscal year
l