The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-12-03
THE NEW TAX RATE.
WILL BANK STOCK BE TAXED THE
+ SAME AS REALTY?

What Bank Ohcers Say Will be the
Probable Result II Such is the Case.
The Question Not Yet Decided by
the City Council-No Opinion Yet
Obtained on the Supreme Courts
Decision.
There is considerable interest in the new
assessment of property for city taxa
ton. Thus far the city council has taken
but two important steps; one was to in
struct the assessment committee to assess
the ground rent lots for taxation. and the
other was the passage Of an ordinance to
assess all real estate at its marketable value.
Alderman Myers, chairman of the
| finance committee, was asked yesterday If
in the readjustment of taxes to conform to
the recent decision of the supreme court,
that the rate Of taxation must be the same
on real and personal property, bank stock
and other securities will be assessed as per-
sonal property, and taxed at the same rate
as real estate.
NO ACTION TAKEN YET.
Alderman Myers replied that the matter
has not yet been acted upon By the council.
and it will not be taken up for a week or
not yet investigated the subject, nor has it
yet consulted the corporation attorney as to
the taxation Of bank stock as personal prop
erty." Alderman Ny ers said, however,
that it appears from recent decisions that
taxation must be laid equally on taxable
property; that is to say, if the tax is l per
cent. on real estate it must also be per
cent. on personal property.
ION the assumption that the rate of taxa
ton will be IA per cent. on real estate, would
it also be u per cent. on bank stockr Mr..
Myers was asked. He replied that il bank
stock is taxable as personal property in the
absence of any special exemption by reason
Of charter the rate would Of course be the
same as on real estate.
THE EFFECT OF HIGH TAX ON BANK STOCK.
As Mr.. Myers is president of the
National Bank of Savannah, he was asked
what will be the result of taxi lg bank stock
as high as real estate, and he replied that
bank stock is now taxed but three tenths Of
per cent, and to raise that tax to ~ per
cent. would prove as unfortunate for the
city as an epidemic. It would have a tend
ency to drive capital away, and banks
would reduce their capital
Capt. John L. Hammond, president of
the Merchants National bank, is not in
clined TO cross bridge until he comes to it.
He says that he does not understand that
the banks consulted with their counsel. He
recognizes, however, that the city is in
need Of revenues to extend its police pro-
lection, to increase It's street lights to inn
prove and enlarge its water works system,
and to increase its fire department.
REAL ESTATE OUGHT TO PAY MORE.
To secure these revenues real estate ought
to pay its just proportion, and this, he is in
clined to think, has not been DONE He
cited one instance where a block of real es-
tate Is assessed for $4,000, and it should
readily bring $50, 900, and its owner asks
$25, 900.
When asked what effect a tax of IL Der
cent on bank stock would have upon the
banks. Capt. Hammond replied that it is a
pretty steep jump from three tenths of one
per cent. to u per cent, and he was hardly
prepared to anticipate the result, but he
thought it might have the effect OF raising
interest on loans to 8 per cent.
Corporation Attorney Adams holds that
real and personal property must be taxed
at the same rate. The council has not yet
called upon him for an opinion whether
bank stock is taxable as personal
property" The present tax rate on real
estate is 211 per cent on ''stock in hand,n
personal property" and shipping" the
the rate Is one-half of per cent, and on
banking capital, three-tenths of per cent
The finance committee Of council has writ
ten to other cities to learn how personal
property and real estate are taxed else
where Ii the state