The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-23
THE NEW ORLEANS DEMOCRAT, MONDAY, JUNE %, 1879.
TIE PENNSYLVANIA REVENUE Law.


The Legislature OF Pennsylvania has re-
Gently passed new revenue bill from which
the committee on taxation might derive some
valuable hints, though the system which II is
designed to give effect to ID not Of all practi-
cable In this State In that State the mode OF
raising revenue Is modelled somewhat on that
Of the national government, the State taxing
only personal property, and restricting local
taxation to real estate. This Is practicable ia
Pennsylvania, where there are great rich
corporations and moneyed institutions from
which an immense revenue can be derived BY
taxing their shares or gross receipts. This
new bill was intended to develop and mature
this system Of taxation, and u 10 ID this re-
speet that study Of 1t may be found q
practical advantage to the members Of our
Convention.
The bill starts out by requiring every cor
poration doing business In tho State to lie
with the Auditor its charter, together with
full and complete history and description Of
its organization, and also to make annual re-
turns to the same officer OF Its business, gross
receipts and dividends; ind upon the basis Of
these returns that officer Ia to make an as
sessment for purposes of taxation. Oompa-
MES paying 6 per cent or more upon the
par value OF their stocks are taxed at the
rate Of one-half mill upon the capital stock
for each per cent OF dividend 30 declared.
Fl no dividend be declared, or less than 9 per
cent the corporation 10 taxed three mills on
each dollar Of capital stock as assessed BY
the Auditor. THESE taxes and all others
provided for In The law, constitute special
liens upon ALI the property Of the corpora
tion. Limited and foreign partnerships are
subjected to the same regulations and taxes
as incorporated companies. Railroad ana
other transportation companies, telegraph
companies, etc, are taxed at the rate OF
eight-tenths of per cent on their gross re-
ceipts, and insurance companies the same;
these companies being ell required TO make
fun and accurate returns under heavy penal
ties.
Private bankers and brokers and unlncor-
porated companies and institutions are
required to pay an income tax OF y per
cent oh annual net earnings. The revenues
derived from these various sources fs set
aside and devoted to specific purposes.
The Auditor and Treasurer are authorized
to examine the books and accounts OF all
corporations. Delinquent taxes bear Ii per
cent interest per annun, and no corporation
can be dissolved by tile Judgment OF any
court unless provision Is made for the pay
ment Of all taxes due
Foreign corporations, except insurance
companies, are not permitted to establish
place OF business Iii the State without q
license from the Auditor, and the fee for this
If Ia
dollar OF capital and stock which the COM
pany Is authorized to have, but this is not to
apply to companies the majority OF whose
stock Is held III the State, or which invest and
use their capital there.
Mortgages, promissory notes, bills bonds,
judgments, articles Of agreement accounts
bearing interest, shares Of stock, public
loans, except United States loans) and ell
other moneyed capital Id the hands Of indi-
viduals are taxable for State purposes at
the rate OF four mills On tie dollar, but are
exempt from all other taxation. Banks may
nay. In lieu Of this tax, six-tenths Of per
cent on the par value Of their shares, THUS
securing exemption Of shares, capital and
profits, from any other taxation. These are
the main features Of this very complicated
law, winch we suDIHlG WltuOut cOLHHoHL lOI
the consideration Of members Of the Conven-
tion.
There Is now due the State an enormous
amount Of taxes from corporations, who are
resisting their payment On the grounds Of
the ambiguity and nconstitutionality Of the
law imposing them. llthat the Convention
| can do Is to frame constitution under
| whose plain and simple provisions q law that
will make all moneyed institutions bear their
just proportion OF taxation can be enacted.
| This revenue bill will at least show the con-
struction placed by the Pennsylvania Legis-
lature upon the provisions Of the recently
| adopted constitution Of that State bearing
upon this question.