Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-04-09
SPAIN'S TAX SYSTEM
Methods Of Raising Revenue En-
ployAd in Porto Rico.
PRACTICE OF EVASION Was GENERAL
Common Articles of Food Heavily
Assessed.
FIVE CLASSES OF TARIFF

FIVE CLASSES OF TARIFF
The present discussion regarding methods
Of raising revenues for Porto Rico lends
especial interest 10 statement regarding
the Systciu Of taxation enforced under
Spanish rule made by DR.. Henry X. Car
roll. special commissioner. who was sent
to Porto Rico last year. The statement
forms part of his report which was pre-
scented 10 the President October e. 1t is as
follows;
Customs duties We're levied both on i'm
ports and exports. There was also a spe-
cial tax on the loading and unloading of
freight. the eubarkatiou and disemhar<;t-
ton OF passengers and transitory dues of
~ per cent imports. The revenues from
these sources. has already appeared
constituted by far the largest item OF the
receipts of the insular treasury.
There was a system of direct taxation.
resting on the basis of income and not on
valuation. The territorial tax. yielding si1O,-
UD to the insular treasury affected urban
and suburban property: the industrial and
commercial. yielding S2io.~" to the insu-
lar treasury, included all kinds of manu-
features and Industries, all branches of
the mercantile and banking business and
all occupations.
Tax on Commerce and Industry.
THE industrial and commercial tax was
divided according to the population of cities
and towns classified according to the char
acter of business and graded according to
amount of business. There were six divis-
Ions on the basis of population. San Juan.
Ponce and Mayaguez constituted the first
DIVISION, towns with custom houses of the
first class the second towns with more
he
three divisions being graded down from
12.'Nb to 1000 and less
Then there Were five classes of tariff. The
nrSt. with eight grades included merchants
Wholesale and retail: the second. importers
ana exporters, money lenders. transporter
ton salaries of officials of banks. railroads
and other companies; the third the manu-
facture of sugar. rum. machinery. chemi-
Gals. chocolate. ice, etc: the fourth. the
professions and occupations and the fifth.
patents or new shops factories etc which
had to pay special installation tax Mer-
chants in the first class of the first tariff
would pay 13o pesos in San Juan, Ponce or
Mayaguez; 104 in Aguad1Ia. Humacao, etc;
q IN Adjuntas. Bayamon. etc; - in Goa
mo. Camuy. etc: 30 In Aibonita. Barran-
quitas. etc. and II in Dorado, Santa Isa-
Della, etc. Merchants. wholesale or whole
sale and retail dealers in various lines Of
wares, on commission or on their own ac-
count. paid according TO the first grade;
retail shops. hotels and restaurants. ac-
cording 10 the second: pharmacies, shoe,
provision and other retail stores were in
the third: stationery shops In the fourth;
wholesale and retail tobacco shops in the
NTH; cafes for the sale of soda waters
etc. in the sixth: boarding houses in the
seventh. and shops for the sale of native
flowers in the eighth.
Tax Salaries.
The second tariff embraced salaries.
wages commissions and the like Govern
ors or directors of banks, railroad compan-
les. etc, paid per cent of their wages or
salaries, contractors G per cent of the
amount of their contracts. banks 10 per
cent of their profits importers and EXPORT
ers. receiving and RENTING. buying and
selling. shipping and conducting banking
operations. paid $500 IN cities of the first
division. Provincial and municipal officers
were not required to pay tax their sal
aries But no kind Of business seems TO
have escaped the sharp eye of the state
experts Public baths. balls and concerts,
lefl"dlcalS. including daily papers. laun-
dries funeral agencies. cymnasiums livery
stables, all kinds Of industries even the
manufacture of artificial feet. were taxed
RiaCkSIniths paid, according 10 the town in
which their business was conducted from
l. To :; pesos: architects. from 81 To Il:
dentists and Pharmacists, the same: physi-
clans anu surgeons ~ TO II: nurses and
nl'.TlV"S, II 10 =, veterinarians IL to =;
har"+rS- = to >; lawyers. registers Of prop
ertN and notaries. IL 10 Ii: while carpeu-
teFS- cabinet makers. hoGkbinders florists
tailprs- milliners and dressmakers profess
Snrs of muSir. languages. painters. etc
paid according to their class and grade
Among the exceptions may be no; I'd wash
erw"mcn. BARRIERS without shope clerks i'm
commercial houses and similar classes Day
iab"rers We're assessed on the basis Of one
third the value Of half a.year's wages
According to the law. some classes of
business and occupations are agremi;t BILE
ana some are not. a particular class is
called a grenfp. The LAWYERS for eXamile
would form one class, the doctors another
the merchants another and so on The Gus
Tom was for the state to announce the
amount il needed and those composing the
various srenlos tciassesJ would meet each
gremio (classj by itself. and apporrion th.
amount among its members on the basis of
the tariff
Tax Land.
THE territorial tax was levied on the IN
come Of real estate. both urban and rural.
1t yielded nearly twice as much as the tax
on commerce and industry The valuation
was made in each municipal district by
commission of three, with three subcom-
missioners for each cIass of wealth the
three subcOmmissiontrs representing re-
sDectiSeiy, the largest, the medium and the
smallest class OF taxpayers These com
mtssioners were appointed at a Joint meet
ing OF the cnuncilmen. with three times as
many taxpayers, elected in equal parts by
the three classes of taxpayers In Valuins
the income of a farm the commissioners
would fix a certain price for the respective
products. Sugar. for example was esti-
mated at 81 quintal (22UI, pounds and
fee, at ST. and IS was allowed for expenses
On urban property - per cent discount was
allowed; on pasture lands. 10 per cent
All taxes were payable quarterly The
amount assessed for the benefit of the
state was . per cent both on urban and
suburban property The rate for the NUM-
c!pality varied according TO its needs but
was generally or ~ per cent. The COM
p!aint was quite general that those who had
much property. and ought TO have paid
large sums. escaped with small payments
Bribery of Officials
Methods of evasion not unknown IN
other countries seem to have been practiced
In Porto Rico, including bribery of officials
A German resident of an interior district
ted the commissioner how he got his an
nual tax reduced by bribery learning the
trick from older residents IL is charged
that Spdniards were favored by the state al
the expense of the natives
Mr.. Andres Crcsas, merchant of MANY
years standing in San Juan. but an Amer
lean citizen. informed the commissioner