The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-03-09
FRANCHISE TAX.
Governor VOORHEES, Explains
the Provisions Of
His Measure.
PROVISIONS OF THE BILL
Two Per cent. on Gross Re
ceipts to Be Distributed
to Municipalities.

Governor Foster NJ. VOORHEES,, at ms
office in Elizabeth, explained the nc"
franchise tax measure introduced at
Trenton Wednesday to a representative Oh
the Newark Daily Advertiser" The Gov
ernor said he had given many weeks oi
close study to the question, Wihch he
found to be one of no simple nature. ms
views on the subject may be best gained
from the following statement he dictated
to the writer:-
1.-THE tax imposed by the bill is in lieu
of the franchise tax heretofore palu u
the State, which, on the various corpora
tions embraced within the provisions Oh
the bill, amounted in 1898, roughly SPEAK
ing. to about Sis, COO. In other words thls
sum will be remitted by the State IN favor
of the different localities in which the
franchises are enjoyed.
.sThe tax imposed by the bill is intend
ed as compensation for the use OF 1he
public easements and leaves the Valuation
of the real and personal property TO De
fixed and taxed at local rates by the local
authorities, as heretofore. The provisions
of the proposed law require the various
assessors to value all property OF Inc
companies for purposes of taxation, sep
arating the property on or in the streets
from the property not so located.
ssThe value of the property in, upon or
undar 4he streets so ascertained is GER
tilted by the local officers to the state
Board of Assessors to enable them TO ap-
portion the franchise tax to the various
localities, according to the amount oil such
property found therein.
saThe companies affected are required
to return to the State Board statement
of the annual amount of their gross re-
ceipts. as of the 31st of December preced-
ing. Upon the amount so returned tnere
is imposed the franchise tax of per cent.
and this amount is then apportloned Dy
the Board and collected by the local lnu-
inequalities.
ssWhen there are existing contracts pc
tween the companies and the dlnerent
municipalities, whereby percentages OF
license fees are to be paid. pursuant 10
any resolution, ordinance or agreement
the measure provides that these shall not
be Affected and requires payments to pe
made as heretofore. When the percentage
of the gross receipts apportioned to THESE
localities exceeds the amount so PAID, tne
municipality will receive the excess. But
until that time payments are to be mace
as required by the agreement.
AS a matter OIL ldCl, t1i6l
affect the present revenue derived oy
the t.fte eof Newark, except SO LssE sSs =
may be entitled to its share OF the tax
imposed upon the electric light, gas, lele7
graph, telephone and TWO or three smail
corporations. :;
terhe provisions of the bill do not IL
any way interfere with the classification
of the property in the streets for pur-
poses of taxation. That may be assessed
Notwithstanding the BILL either as per-
sonal or real property, as the assessors
mine, if The classification is questioned.
1.-The measure directs the assessor 10
ascertain the value of the property located
in upon or under any public street, etc.
owned by those subject to taxation under
the provisions of the act, and TINS prop
erty is assessed and taxed at local rates,
as now provided by law.
1.-THE ascertainment and certihcation OF
the value by the local assessors is not to
but to furnish them with a means OF as
certaining the share of each municipality
in the franchise tax.
Undoubtedly the measure will meet
with considerable opposition, and 1t may
not contain all of the promises that some
may think should be enacted. 1t will,
however, serve, if enacted to establish a
new policy in the State and the communl-
ties wherein franchises are enjoyed will
of the Stale at large. 1t may not meet
with the approval of those who believe
that a much higher scale of tax should
be imposed. AS some one has said, 1t Is
not so much the length of the step as 1t is
the direction in which the step is taken
that is to be considered. The measure, l
believe. is in the main, a fair one to all