The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-27
THE REVENUE ACT-EFFECT OF
THE DECISION.

L
The Revenue Act Of 1895 levied tax
Of $1.29 cents ON the poll, which was
three times the amount levied on prop
erty to-wit. 43 cents on each 500 worth,
| apportioned as follows: q % cents for
| general State purposes, 3 1-3 cents for
| pensions and IS cents for schools.
The Revenue Act of 1897 names the
| same amount, $1.29, as the poll tax,
but increased the levy on property to
p 2-3 cents for general State purposes,
| ) 1-3 cents for pensions, and 20 cents
for schools, making 46 cents on property.
The constitutional equation between
property and poll being thus destroyed.
the Supreme Court has decided the two
sections embracing these fevies void, and
that the levy on the poll and property
made by the act Of 1895 is re-instated.
What effect this reduction will have on
the revenues Of the State becomes a per
tinent inquiry, the more especially in
view Of the largely increased appropria-
tons for various objects made by the
last Legislature. There Is reduction of
i cent by the substitution Of the law of
1895 on the hundred dollars worth of
property, for general State purposes.
The aggregate valuation of the property
Of the State, subject to this tax, is $751;
100000 in round figures The one cent
ri pti 1lcp IN %I,n
general State fund Of sos, ZOO, less 5 per
cent for collection. The reduction of two
cents-from 20 to Is cents-from the
school fund.- is Of course double the above
amount, or about $4,000 net There is
no loss in the pension fund.
The general fund above provided for,
is to be applied
/. To the expenses of the State govern
ment.
2. To the appropriations to charitable
and penal institutions.
3. To other specific appropriations
made by law; and
4. To the interest on the 4 per cent.
consolidated debt of the State.
The constitutional limitations for State
and county general purposes is Go %
cents on the 500 vaIae' of property.
The sum of the difference between the
amount levied by the State-43 cents
and the &C % cents limitation, is left to
the counties for general county expenses.
This full amount, up to the limitation, is
levied in every county in The State. or
NIL hxyS faS,n Il
of Sc % cents necessarily fixes the poll
tax at the highest mark. viz, two dollars
Therefore the tax on the roll is rOt
affected by the decision under considera-
tion. The general fund of the State loses |
about $4,000 net. and the school fund !
provided by the State loses about $ ~.
600 net of taxes derived from property;
but by virtue of both State, and County
levies on property, the poll tax will reach |
the 50 limitation. 81 so Of which must go
to the schools, ten cents to pensions, and
about forty cents, if SD much be needed, |
to the county poor.
Section 1916 OF The Code tine cOntr;Ic0 |
10y which the State debt was compromised
and settled, specifically designates and
sets apart. for the payment of interest OH
said bonds all taxes levied and collected
from certain subjects If these taxes
should prove Insufficient for said interest,
section $3.50 of said contract authorizes
the State Treasurer to apply such money
in the general fund ''nOc otherwise appro-
priated.' to supply the deficiency; and II |
these two sources prove insufficient, or if |
the specific taxes provided in section 1916 |
should be insufficient, and there be no |
money in the general fund, ,mappropri |
ated for either the charitable and penal |
or other specific objects, |
then section 1888 Of The Code directs |
that the Treasurer issue bonds bearing |
6 per cent. interest, payable" in 1910 |
years.
This statement, taken in connection |
with the largely increased appropria tions, |
and the declaration Of The State Trensu- |
rer that a defcit is absolutely certain, |
shows that the last Legislature not only |
forced the State to default in its con |
tract. but to increase the State debt by |
issuing a large amount of 6 per cent
1910 year bonds