The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-12-19

VOORHEES, ACT.
State Assessors Explain
Franchise Tax Law for
the Benefit Of
Officials.
STATE LOSES, LOCALITIES GAIN.
Plans for Enforcing the Rules
Great Increase in
Income.

The annual report of the State Board
of Assessors contains an interesting and
instructive discussion of the law passed
last winter by the Leg, stature providing
for the taxation of municipal franchises
The act was passed in accordance with
a recommendation of Governor Voorhees,,
who made a special study of the mat
ter. and provides for the taxation OF all
the property and franchises of corpora
tions or individuals using or occupying
public streets, highways, roads or other
public places
1t was one of the most important acts
of the last session of the Legislature.
The act provides for the taxation of
franchises, by an equal and uniform rule
It goes into effect January l next, and
as the apportionment of franchise tax,
provided for in the law, devolves upon
the State Board of Assessors, that body
has taken upon itself the duty of COM
menting in a general way upon its prac-
teal operation.
The comment of the Board, in its re-
port, is as follows:-
In the first place, all the property, real
and personal, franchises. ETC.. other than
that taxable under the railroad and canal
tax act, and which have acquired or may
hereafter acquire authority or permission
TO use or occupy streets highways. roads,
ETC.. shall be valued, assessed and taxed
a. provided in the act of last winter.
In the second place, the local assessors
are required to ascertain the value of
property located in, under or upon any
highway or public street and when SO as
certained such property shall be assessed
and taxed at local rates, as now provided
by law
In the third place, the local assessors
are required to make annually a return,
duly certified, on or before the third
Tuesday of September in each year, of
the valuations of all property located in,
under or upon any public street highway,
ETC.. together with the name of the owners
and those operating the same, and to file
this statement in the office of the State
Board OF Assessors.
In the fourth place, all person. CO.
partnerships, associations or corporations
who operate under municipal franchises
shall on or before the first Tuesday of
May in each year return to the State
Board of Assessors a statement showing
The gross receipts of business in the
State of New Jersey for the year ending
December 81 next preceding, all of
which reports are to be properly sworn
to- The act provides for penalty of
not more than $1,000 for failure to make
or wilfully neglecting or refusing to
make such reports.
In the fifth place, an anual franchise
tax of two per centum upon the annual
gross receipts shall be assessed as afore-
said upon all operating under municipal
franchises.
In the sixth place, the State Board of
Assessors shall ascertain and apportion
the franchise tax to the various taxing
districts in proportion to the value of the
property as shown by the statements
fled by the State Board of Assessors
to the respective local assessors or proper
officers on or before the third Tuesday
of October in each year, and the fran
chise tax so ascertained shall be paid the
same as other taxes to the local authori-
ties.
In the seventh place, all moneys now
payable under any contract or agreement
with the municipal authorities shall con-
tinue to be paid notwithstanding this act
and if the amount paid under any such
contract or agreement shall be greater
than the amount of the franchise tax on
two per cent. basis, such payment
shall be made in lieu thereof. If it is
less than a two per cent. basis the differ
ence shall be paid as provided under this
act. In the eighth place, the franchise
tax imposed by the act is in lieu of al
other franchise taxes now assessed
against those subjects to the provisions
of this act.
1t will be observed that the act requires
persons, corporations or associations
using the public streets to pay a fran
ch,se tax so that an individual or unin
corporated body operating a public fran
chise is equally liable with the regular
Incorporated companies. Very many Of
tht taxing districts assess an arbitrary
amount without regard to true values
upon which is paid the local tax, and thi:
assessment is supposed to be on the fran
chise. Under the act of 1900 this plan viii
be dispensed with and the local ass assor.
required to assess at true value the prop
erty in, under or upon the street withou
regard to any additional amount for
franchise.
Investigation has also demonstrate,
that the different taxing districts fix diff
ferent rates of valuation for property in
the property is exactly of the same con
struction. In view of these facts, it i
essential primarily that the local asses
sors shall assess the property deferred t
upon uniform basis. To aid in secur
ing this end the State Board of Asses
sors will formulate and distribute to tn
local assessors an estimate of the tru
value of the property in, under or upo
the streets which they are called upon t
assess. which estimate will be founde
upon careful inquiries set on foot by tn
board It is not intended TO take from tn
local taxing officers the right to exercis
their own discretion in making up values
but it is intended that the estimate fur
nished shall be a guide for such officer
n the performance of their duties unde
the act-the Board feeling that they ar
in possession of facts which better enabl
them to advise what is true and uni
form value.
The report goes on to speak of the pre-
An Old and Well Tried Rome Iy
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