Centre Democrat. [volume] (Bellefonte, Pa.) 1848-1989, 1879-07-10
New Tax Law In Pennsylvania.

A new revenue bill was passed by
the late Legislature Of Pennsylvania,
and became Law by the signature Of
Governor Hoyt. The bill makes Il
good many important changes in the
tax system Of the State, the modes Of
which for raising revenues are different
from that adopted elsewhere, the State
taxing only personal property, while
local taxation II practically restricted
10 real estate. The bill sets cut requir-
ing every company or institution Of
every sort doing business in the State
10 register a full description aud all
the particulars of its organization in
the office Of the auditor general, aud
also 10 make annual returns Of buri-
ness, dividends and other profits 10 the
same officer, who is TO value the stock
Of such companies upon the basis Of
the returns made. If companies or
corporations earn or pay dividends
amounting to more than g per cent.
upon the par value Of their stock they
are 10 be taxed ri the rate Of one-half
mill per ccntum Of dividend 20 dcclar-
ed. If no dividend, or less dividend
than Fix per centum be declared the
corporation j. to be taxed at the rate
of 3 mills on each dollar Of valuation
OF the stock Of the company a. arccr-
taincd by the AuditDr-Gcncral. Thee
taxes, aud all othcr- set forth in this
law, are to constitute preferred liens
upon all property Of the corporations.
Limited anasioreign partnerships are
to be subject 10 the -arnc regulations,
aud taxed a. compauic. and other cor
p0ratiou.. Railroad and other trans
por,a,ion companie. Of all sorts, and
telegraph cpmpauies, &c, are required
o. pay tax Of oight-tcuth- Of one per
cent. upon their gro-, receipts, and in
sIraucc companies the same, very rig
ID MEASURE to be provided 10 compel
all such corporations - make full aud
accurate returns to the auditor. under
a heavy penalty for neglect. Coal
companies are taxed three cents per
ton on every ton mined this year; one
cent per ton on all mined next year,
and after that this special tax shall
cease.
Private baDkcrs aud broker. and
unincorpOrated companies and insii-
iu,ion- are required to pay an income
tax Of three per cent. on annual net
earnings. The tax law specifically
sets apart the revenue derived from
certain sources, assigning some 10 sink
ing fund purpose, and some 20 the
payment Of ordinary current expenses
Of the government. The auditor
general, the treasurer. or their dcsig-
mated agents are authorized TO exam
inc the books and accounts Of any
corporation. Delinquent taxes are
ordered 10 pay interest at the rate of
! > per cent per aBnum. and no cor
pJraliun can be dissolved by the de-
cree of any court in the State until
the iaXc- due 10 the States hayeb cen
fully paid. Foreign corporations, cx-
ccpt foreign insurance companies.
shall not be allowed TO have place Of
bushes, in the State without license
from the auditor general, and the fec
for the annual concession Of this IL
censc j. 10 be onc-fourth of mill on
each dollar Of capital stock, which the
company j. authorized to have. but
this is not to apply to companies the
majority Of the capital stock of which
i owned within the State, or which
invest or use their capital in the Com
monwealth. Mortgages, Promissory
notes, bills, bonds. judgments, articles
Of agreement, accounts bearing inter
est, shares Of stock. public loans, etc,
except United State loans and all
other moneyed capital in the hands Of
individuals in the State, are made tax
able for State purposes at the rate of {
mills on the dollar, but are exempted
from all other taxation and banks
may pay, in lieu of the above, a tax
of six-tenths of one per cent, on the
par value Of their shares, thus secur-
ing the exemption of shares, capital
and profits from any other taxation.
This new tax law. which goes into ef-
feet Immediately, is pronounced by ex-
perts TO be so complicated that no one
can calculate the probable revenue
which will likely be collected under it.