Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-06-28
THE MERCHANTS TAX.

Mr.. EDITOR inasmuch as there IS con-
siderable apprehension manifested By many ;
# the merchants of our city touching the
ordinance now pending before the city coun-
I'll. declaring what shall be deemed prlvl-
eges, and fixing the amount to be paid for
their exercises within the city limits, we beg
to correct erroneous views and allay unnec-
essary fears.
ii The ordinance III question is only in
tended to regulate the privilege tax, and
among a great many occupations, that OF
merchants is mentioned. The city attor
news met with the finance committee tor the
purpose, we suppose, of furnishing them |
legal information upon all questions requlr- |
inc it. and the gentlemen of the committee |
prepared a schedule Of taxable privileges
and affixed to each the amount, which, III
their Judgment. should be charged as PRIV
ilege tax.
Rv this schedule, merchants are required
to pay a privilege tax of 40 cents on the
hundred dollars, provided that IN no event
shall the tax be less than twenty dollars per
annum.
In modelling this draft of a schedule INTO
an ordinance, we have provided how the
taxable capital for privilege purposes Is to
he ascertained and III order to cause no mis-
understanding we have added the following
clause:
Provided, that in addition thereto, all
merchants shall pay an 0d gGSore'n tax of an
amount equal to the property tax levied
l11pon property in the corporate limits by
the city authorities, which tax is to be as
certained as provided for by the statute of
the State in ascertaining State and county
taxes"
! This clause, we suppose, has given rise to
! the misunderstanding that the general rate
of taxation on property III the city of Knox
vile had been fixed, and assuming 1t to be
as last wear. at the rate of 81. 80 for each
hundred dollars worth Of property-that
merchants will have to pay to the city treas
11rv for the exercise OF the privilege, the
sum of $500 per hundred.
That this is mistaken idea will be appar-
emf to every one, upon a perlsal of this
communication
The ordinance as passed on its first read
inc provides for a privilege tax of forty
cents on each hundred dollars of capital IN
vested in business, provided that such priv
Iege tax shall not in any case be less than
twenty dollars per annum.
And it is proposed 70 amend this by max
ING the privilege tax on merchants, IRE
spective of the amount of capital invested,
as follows: On retail merchants twenty
five dollars per annum, aud on wholesale
merchants fifty dollars, and if such should
be the wish of the board of mayer and al
dermen we see no legal reason why it may
not be done.
The general revenue law passed at the
l late session OF the Legislature continues tt
: class . merchants" in the list Of avocatiOn
I, VIII
pursued without license.
The assessment act (section 16) provide
: ''that merchants shall pay an 0d 0Glore0
c tax upon the capital invested in their busi
ness equal to that levied on taxable prop
erty."
t Aad section 20 of the same act provide
: that " the word capital" shall be construe
$50 as to mean the largest amount of stoc
6 on hand at any one time in the year, whel
it is offered for sale
/ The State fixes the dd g0l0Tenl tax o
merchants at 30 cents on each $500, and
e privilege tax of 40 cents on each 800 of caI
ital invested, the privilege tax in no case
be less than SO.
II That the legislature has the right to d.
clare the business of merchants pr1Vleg
Y is well settled. That it may regulate tn
: privilege tax in the manner done at its II
cent StSSlOu GILL IittICllS NC NtOltDtCti' Lilo
the manner adopted is just between me
s. chants themselves, is clear; whether just {
between them and there fellow-citizeI
opinion may differ.
: In shaping the ordinance from the oche(
G. ule adopted by the finance committee, v
IA followed the State law, but the board nll
~. settle what changes should be made IN Il
amount and manner Of fixing the prviles
tax The board has the utmost liberty her
e It may fix any amount (in view of It's niece
4 sites, such as expenses and liabilities OF
NAV let the merchants go free altogether
:, privilege tax.
i What is Just and right between the NE
lp chant Of small means and the merchant
il large means and between both classes al
other tax payers, is the right and duty
a, the board to determine. We have express
no opinion about it, have no voice i'll Il
matter aud have not sought to influence al
one.
Toaching the I'D calorem tax on ms
chants, the board is also the SC
Judge 1t must not levy any such tax {
merchants, or on any other person. But
II does ten an ad U0loreD9 tax on other pro
z, erty, it must iecy s4ch q tue and IF tile sdJ
amount on the properly Of merchants.
= other words, the I'D caGorem tax must
Id uniform and equal This has been the il
IS all the while. 1t is true that an Ordinan
Ii passed in 1871. and subsequently amende
o. merchants have only been paying an
> Hg0l0ren1 tax of 40 cents on each 500
average capital invested III their busine
and d privilege tax Of 30 cents on the 81
81 such tax of 20 cents however, in no e.
being less than 500
yht Tie ordinance now pending, viii,
Inv passed, make the dd CGJ0rem tax on N
:. chants Just the same as that imposed
- other peoples property. Indeed, 1t
Ice been, or should have been according to Ia
I'd, the same all the while, Notwithstanding
mi ordinance fixing it at 40 cents, for such
nv ordinance has no validity,
to The fact that only 40 cents have been {
the lected, does not prove that no IN
,ial could or should have been, or may not Il
,oi, be collected, as the rate of taxation OF OF
property has been much higher. The o
difference, if difference it can be called,
tween the Gd UaJ0r6ha tax on merchants
=, other citizens, is not in the rate of ia
Co' but in the manner of ascertalnlng the pr
!. erty subject to taxation. The CITIZEN Is
7ost qUired to furnish the amount of his pr
erty upon certain blanks to the assessor
od'' his ward or district, and the merchant fl
the ishes his Consisting of merchandise to
10Th county court clerk at the end Of
Of year from the granting of the icel
r The citizen able to ascertain his prOpt
VI mot merchandise at any time aft
9nal its valuation when he reports to the assess