The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-12-28

the inception of the present. administra-
ton the amount of premium and accrued
interest paid in the purchase Of bonds has
been deducted from the first installment
of interest paid to the State and returned
to the fund. thus keeping it intact.
l recommend that the Legislature take
some action looking to the restoration OF
the amount mentioned.
The receipts and disbursements during
the forty-second and forty-third fiscal
years were: Total receipts, S444, 79l; dis
bursements the same.
Bonds amounting to S354, 600 in excess
Of the amount held at the close of the
| tOrty-first fiscal year were purchased
with the moneys of this fund, and are
now held III trust by the Treasurer for
the support of the common schools.
THE STATE DEBT.
At the beginning of the forty-second
| fiscal year the State debt amounted to
! s., 81, 900. Since then funded debt bonds
Of 1873, amounting to SOS, 500, have been
redeemed, leaving the State debt July |.
1892, amounting to S2,533.5 800.
OF the 1888, 500 outstanding bonds of
the State 2,277, 800 are held by the State
for the benefit of the school and univer-
sity funds leaving but S256,000 in private
hands. OF this amount $1,000 have been
called in, there being money in the Treas
ury to pay them.
PAYMENT OF TAXES IN sEMI-ANNUAL
INsTALLMENTs.
The amendments to the revenue law
passed during the last Legislative session
providing for the payment OF State and
county taxes in two equal semi-annual
installments have been in operation
since July l, 1891, and one entire years
revenue has been collected under their
provisions.
From careful observation and informa-
ton gathered from the Tax Collectors
and other officers Of the various counties,
l am warranted in stating that the sys-
! TEN is giving but little satisfaction, while
it increases the cost Of collection about Is
| per cent.
1t was expected that the law would be
/ taken advantage of by the farmers and
! artisans, and would benefit them by
| tightening the burden of taxation in
/ some degree, beside relieving 10 con-
! siderable extent the pressure caused in
| financial circles by the withdrawal o.
some 100000 or Sl2,000,000 from the
! channels Of trade at the particular season
OF the year when money is most needed.
| 1t does not appear that the objects
/ sought have been attained.
! The small taxpayers have not taken
kindly to the innovation, and as a result
| about 80 per cent. of the whole amount OF
! taxes were paid when the first Install
| ment became due. a few of the large
| landhOlders, banks and railroads have
prohted by the new law, but l am adj
vised that even many Of these classes
| have paid their entire tax at once, rather
than be troubled with the second pay
| ment.
! However, am strongly Of the opinion
! that the new system should have fair
and impartial trial. 1t has been tried and
| proven successful in many other States,
and l firmly believe that it will event
ualiy lind favor in the eyes Of the people
| Of this State.
One good result of this system is al
ready manifesting itself in the small
amount of taxes remaining delinquent,
the reports showing that taxes are being
paid up more closely than ever before.
| \ penalty Of Is per cent. for delinquency
on the first installment is charged against
! individual taxpayers; in the case OF rail-
roads this penalty is but per cent. This
| should be equalized. There is no justice
| in such determinations.
COST OF COLLECTING STATE REVENUE.
In making the tax levy for the forty
third and forty-fourth fiscal years, the
! Legislature, at my suggestion, reduced
| the allowance for delinquencies and costs
| of collection from y to 81 per cent. That
this allowance is ample, is shown by the
| fact that the actual percentage in the
! forty-second fiscal year was LILO, and in
| the fortythird 5 Clio. This percentage
may be still further reduced by doing
away altogether with the costs of collec-
ton and allowing but per cent. for de-
| lInquencies.
During the forty-second fiscal year,
ending June 80, 1891, there was allowed
the Auditors, Assessors, Treasurers and
Tax Collectors of the various counties, as
n
! amount of S324, BOB 81, being 5.36 per cent.
| of the whole amount of such taxes col
lected for that year; and in the forty
third fiscal year 1000 70, equal to !. Is
per cent Of the whole amount collected.
| The necessity for repeal Of all the
! laws granting commissions for the assess
ment and collection of State taxes has
been pointed out repeatedly by former
! Controllers. There is not now a county
in the State in which the offices of
Auditor, Treasurer, Tax Collector and
| Assessor are not salaried, and all the
| commissions received by these officers.
| with the exception of the Assessors 8
| per cent. commission on the collection OF
| personal property taxes, are turned into
the County Treasury, and credited to the
salary fund. The present system is alb
surd-it is, in effect, transferring money
from one pocket to another, and losing a
portion i'll the transfer. During the early
years of the State Government. when
county officials were allowed the fees re-
ceived for the performance of official
duties in lieu of stated salary, it was
just and right that the State should al
low commissions tor services rendered in
connection with its revenue; but that
time has passed, and such a system is no
longer necessary. Every person of ordi-
nary intelligence can readily perceive
that there IS no economy in the levy and
collection of from $500, coo to $500, 600 ad-
ditional taxes, III order that the State
may return this amount to the various
/ 4ias ~, I,o -