The daily gazette., 1879-06-23
New Tax Law I'm Pennsylvsnia.


A new revenue bill has been passed
lately.by the Legislature of Pennsylva-
MIA, becoming law by the signature of
Gov. Hoyt. The bill makes a good many
important changes in the tax system of
The State, where, as is known, the mode
OF raising revenue is different from that
adopted elsewhere, the State taxing only
personal property, while local taxation
IS practically restricted to real estate.
The bill se's ou by eq ir rg every
company or Institution of every sort do
ing business in the State TO register q
full description and all the particulars of
its organization in the Office of the audi
tor general, and a so to make annual re-
turns OF tusinc S, dividends, and other
profits to the same officers, who sit to
value the stocks of such companies upon
the basis of the returns SO made. Ii con-
panies Or corporations earn Or pay divi-
dends amountingt to more than 6 per cent.
upon the par value OF their stock they
are to be taxed at the rate of one.half
mill per centlm upon the capital stock
Tor each one per centum of dividend so
d.cla ed. If no dividend, or IS dividend
then O per cen,um be declared, the cor
poration is TO be taxed at the rate OF 3
mills on each dollar of valuation of the
stock OF the company as ascertaiUed by
the audi or-general. These taxes, All all
others set forth in this law, are TO con-
stitute preferred liens upon all the pro-
perty of the corporations. Limited and
foreign pa tnerships are to be subject to
the same regulations and taxes as com
panies and other corporations. Railroad
and other transporlations companies of
all s1rts ard telegraph companies, &C.,
are requlied to pay tax of eight-tenths
OF one per cent. upon their gross receipts,
and insurance companies the same, very
rigid measures being provided to compel
all such corporations to make full and
accurate return to the auditor, and the
penalty for neglect is made severe. Coal
companies are taxed cents per ton on
every ton mined this year; one cent per
ton on all mined next year, and after
that this spec al tax shall cease and
deter mine.
Private bankers and brokers and unin-
| corporated companies and institutions
are required to pay an income tax OF 3 per
cent. on annual net earnings. The tax
law specifically SETS apart the revenue
derived from certain sources, assigning
some to sinking fund purposes, and some
to the pay yment of ordinary current ex-
penses of the government The audit
or-geueral, the treasurer, o. their desig-
mated agents are authorized to examine
the books and accounts of operation. De-
linquent taxes are ordered to pay inter-
est at the rate of IL per cent. per annum,
and no corporation can be dissolved by
the decree of any court in the State un-
til all taxes due to the State have been
fully paid. Foreign corporations, except
foreign insurance companies, shall not
be allowed TO have a place of business
in the State without license from the
auditor-general, and the f)r the ar
nual Concession of this Ii, en- ,e is to be
one-fonrth of mill on tac dollar OF
cipital stock which the com ANY is au.
lorized to have, but this is not to apply
to companies the majority of the capita
stock of which is owned within the State
or which invest and use their capital in
the Commonwealth. Mo. tga es, prom
issory notes, bills, bonds, Judgments, ar
ticles of agreement, accounts bearing in
terest, shares of stock, public loans, &C.,
| excerpt United States loins,) and all
other moneyed capital in the hands pf
individuals in the State, are made taxa
bic for State purposes at the rate of 4
mi Is on the dollar, but are exempted
from all other taxation; and banks may
pay, in lieu of the above, tax of six
tenths of one per cent. on the par value
OF their shares, thus securing the cxemp-
tion of shares, capital and profits from
any other taxation. This new tax law,
which goes into effect Immediately, is
pronounced by experts to be so ccmpli-
Gated that no one can calculate the prob
able revenue which will likely be col
lected under it.-Bah. San.