The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-05-04
AMENDED TARIFF.
The Changes Decided On
Yesterday Relate to the
Income Tax.
TEXT OF THE AMENDMENTS
B. and L. Associations That Make
Loans to Shareholders
Excepted.


met today at eleven A. M. Mr.. Vest, Oem
NO. member Of the Finance Committee
presented the amendments agreed upon in
the Democratic conference Of yes
terday. They ali relate to the in
come tax to be collected from
corporations, providing for tax Of two
per cent on the net profits or income above
ordinary expenses of all banks, trust, rail
road, insurance and other companies-not to
apply, however, to building and loan associ-
ations that make loans to their shareho FOLDERS:
The amendments werelaid on the table and
ordered fled
THE AMENDMENTS.
The text of the amendments are as fol-
lows:--
Sections 50, go and 81 are stricken out and
the following section substituted therefor
s'That there shall he levied and collected
tax Of two per cent per apnum
on the net profits or income above ordinary
working or operating expenses Of all
saving institutions, fire, marine, life END
other insurance companies, railroad, canal,
turnpike, canal navigation, slackwater, tele-
phone, telegraph, express. electric light,
gas, water, street railway companies and all
other corporations. companies or associa:
States no matter how created and organ
lied.
isThat said tax shall be paid on or before
the first day Of July In each year; and IL the
President or other chief officer Of any cor
poration, company or association shall
neglect or refuse to file with the Collector of
the Internal Revenue District in which said
corporation, company or association shall be
located or engaged In business, a statement
verified by hfs oath or affirmation, showing
| the amount of net profits or income re-
ceived by said corporation, company or asso-
ciaticn during the whole calendar year pre-
cedinag the date of filigpg said statement as
Company col @~ = Or association making de- de-
fault shall forward as penalty
the sum of $1,000 and ten per cent.
of the amount Of taxes due for each month
| until the same Ia paid, the payment Of said
penalty to bs enforced as provided in other
| cases Of neglect epd refusal to pay penalties
and taxes under the intsfpal revenue laws
WHAT INCoME ISCLUpES.
"Fhe net profits or income OF sll corpora
tions, companies or associations shall include
the amounts paid to shareholders and bopd-
holders or holders Of certificates Of indebted
ness of any kind, or CARRIED to the account
of fund. or used for constructions, enlarge
ment of plant or any other expenditure or
| investment representing the net profits made
or acquired by said corporations, companies
or associations. .
! THAT nothing herein contained shall APP
ply TO States, counties or municipalities nor
to corporations, companies or associations
organized and conducted solely for charita-
BILE, religious or educational purposes nor to
the stocks, shares. funds or securities held by
any f1duciary or trustee for charitable, relig-
| ious or eo~cational purposes; nor to such
building and loan associations as are organ
lied under the Jaws Of any State or Ter
ritory, OF the District Of Columbia, which
make loans only to their shareholders to en-
i able them to provide Tor themselves homes. y
ADDITIONAL AMENDMENTS.
| There are twenty three additional amend
ments designed to remove certain objection
able features and lessen the stringency of the
law. Where o penalty is attached in the
case one renders q fraudulent return, the
wilfully false or fraudulent" return. In
case Of failure or refusal to make return the
collector Is directed to make list by the
examination Of the person, etc. the words
| by the examination OF bis books or accounts
| being stricken out. In many places through
| out the income law feature the present word
| ing relates to the acts Of any "person," and
| in other places the word Corporation" alone
| is used. These have been amended SO as to
| include companies and associations.
! At the end of Section 60, which regulates
| the payment of the taS by persons drawing
salaries in excess Of $4,000. there has been
added the following provision
Provided that salaries due to State, county
or municipal officers shall be exempt from
| the income tax berein levied.
The section Of the revised statutes q, ,176l,
which reads:
| tsThat the Collector oe any deputy col
lector in any district shall enter into and
person therein who has taxable property
and who refuses eg neglects to maks
| any return, etc." has been amended
so as to read, that whom any person, cor
poration, company, or association refuses.
the collector or his deputy may make out the
return, the authority TO enter upon the pre-
misses being stricken out.
! The limit Of the time during which the Law
shall be in operation Is fixed at from Janu
ary ], 1895, to January l, 1900.