New-York tribune., 1881-03-25
TAXING CORPORATIONS.

REPORT FROM THE TAX CoMMIssIoN-IMPoRTANr
AMENDMENTS IN THE CORPORATION TAX LAW
PROPOSED.
ALBANY, March 24.-The Joint Committee on
Assessment and Taxaon with the members Of the Tax
Commission, this afternoon. John f. Seymour, from
the Commission appointed by the Governor, presented
report which is in part as follows:
The report says that $3.50 1888 have already been paid
into the department Of the state Controller under the
new law OF 1880 for raising taxes for the use OF the
personal properly Of citizens much Of the State
tax is estimated by the Controller that the amount
thus TO be received will ultimately exceed 100000
annually but the law, to differences In opinion as
to is true meaning. has given rise TO much litigation
We respectively submit herewith certain amend
chapter 542 Laws Of 1880 in compliance with
municatlon These amendments are Intended render
the act efficient for the purposes which 1t seems TO
preexts for tgatons which found IN Its somewhat
uncertain provisions. II will be observed that the
missioners are OF opinion should be approved and
favored to witt as the provisions Of the act are pnt In
effective operation and become productive OF revenue by
taxation OF corporations to the extent Of this revenue all
property both real and personal throughout the stae
is relieved Of taxation for State purposes In this way
the chronic difficulties that surround the meqnates OF
tempts to adjust satisfactorily, we hope VIII gradually
ne Controller in bis annual report states that from
the tax imposed under section g. corporations have
claimed exemption TO the extent that their capital Ia In
franchises of corporations aud not upon property
and should '
with thus Recommendation. We have amended the act
lS Sn'tiss e. second and third lines of Section
one after the word taxed the words on Its cOrPo, %
seventh and eighth lines OF the third section the words
tax upon ts corporate franchise or business , ;
section and in the fifteenth and sixteenth lines Of SEC %
act. The Controller recommends that in case OF an
appeal from this apprai.ement It be made to the STATE
Board OF Equalization, ne being member Of the latter
Board. We have departed from this suggestion ana
of State Attorney General and Slate Treasurer. His
objection to including gas companies In the exemp-
soms Son o. Q; the members Of the Commission were
net satisfied that the rate OF taxation OF section should
the ASSOCIATIONS and corporations and companies in
ouded in Its terms some thinking 1t should be upon the
net earnings and upon the gross earnings only
after deductng running expensss but the commission
As they feared as will be seen by the following lustrs
tton: corporation with capital OF S6OOOOO paying
Hon nav tax under the Law on capital OF 81 200 and
gross earninGs Of $2333 making total OF 5000
1os nersonaI property t would be relieved from State
tax under former lava OF $780, leaving tax ON It's
The LeSisiative Committee is requested to examine
into this calculation, we desire 10 DO no injustice 10
The Controllers report In sudine to that part of sec
ton six laws Of 1880. which provides that in arriving
SI ~ Ds ear Or freight line there shall be St
deducted the expenses paid 70 any common carrier Tor
gives IL as his opinion that this provision should be
stricken the bill discrimination In favor OF the
Ssoeratop e S Sas See1 90 amended He
also Rves the same opinion 70 the provision In section
ak "That nothing IN this section should be held to
apply 70 street surface railroad company aud also
90 the last four lines OF section eight relating 10 street
with the Controller have made the amendments tug.
gesed Section 10 new and its interest TOO obvious
should further deliberaton the part OF the Com.
mission suggest other amendments they will
Be- submitiod % the cOmmlt.es In connection
consideration amendmen 70 chapter o34 ei the Laws
Of 1880 providing for the taxation Of ie Insurance s
taxation OF banks etc., ell OF which respectfully sub
mitted.
bEcrIoN Provides FOR returns and specifies how cor
poraiions that pay no dividends are 10 be taxed
IL Provides penalties for falling to make returns
porate franchise or business. II dividend of per
Is paid 1t be at the rate OF Il mill upon the capt.
tal stock for each per cent OF DIVIDEND; n under
per cent the is TO be q mills upon ca ch dollar OF
the capital stock valued according TO the provisions
Of the bill PrOvtdon is made for taxing common and
~. directs that rressurers shall remit taxes
" This section taxes fire insurance companies eight
tenhs of per cent the gross OF their pre-
mIums This applies TO home and foreign coDpanies
t..erapS companies al the rate Of dvetenths Of per
cent upon their gross earnings In this State T
VII This directs that the tax imposed under
sectiou sx shall be paid annually the LIST OF August
Will The lands aud real estate OF the various cor
iIoned as taxable snail continued TO be assessed and
taxed where situated for State and local PURPOSES but
there personal property shall hereafter, except for
eounty town and municiDa purposes. be exempt from
assessmeut or taxation, except this act prescribed
TX The taxes posed by this ao shall be applicable
TO the OF the ordinary and current expenses Of
All obligations liabilities aud heretofore tn.
cnrred or imposed under tho Chaptor 5t2 OF laws Of
isso are saved aud shall be enforced the act had
not been hereby amended.