The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-02-12
TAX FOR PENSIONS
Finance Committee Fixes 1t
At Four Cents.
The Committee Declines Almost Unanimously
TO Reduce the School Tax. Taxa.
ton of Bank Stock.

The joint committee called to consider
the report of the sub committee on the
Revenue Act, met in the Senate Chamber
yesterday afternoon.
When the committee had been called to
order by Chairman Gattis, Senator Ay
cock stated that many changes had been
made in the old revenue law. He added:
I'VE of the sub committee have done
our best, but we hope you'll carefully re-
view our work. You'll find that we are
confronted by two facts: One is that
there is much property in the State not
on the tax books. The other is that
enough revenue is not now raised to de-
fray the States necessary expenses. Our
aim has been to put ali property on the
tax books, believing that there is enough
property IN North Carolina to raise all
the revenue it needs and thereby pre-
vent the necessity of bond issue
The bill was read and PASSED on by
sections.
The poll tax remains the same as here
tofore S1.29. There was no discussion as
10 this. but when section 8, which fixes
the DroDertv tax rate, was reached there
was considerable division of sentiment
among members of the committee as to
whether the pension tax should be cents
and the State tax 20 cents. or the pension
tax 9 1-3 cents and the State tax q 2-3
cents.
On motion of Senator Smith the pension
tax was fixed at a cents and the State
tax at q cents. This. it is estimated.
will raise $4,000 for pensions, as against
he oI1 10,
Judge Graham. who had strongly advo-
Gated a cents tax for pensions, now
moved to reduce the IS cents tax for
schools to Il cents and add the l cent to
pensions, making cents. AS this motion
met with no support from other members
of the committee Judge Graham with
drew it.
Another. and quite lengthy debate
arose over Section 4 tTaXation of Banks
and Bank Stock)
This section, as already stated in these
columns, requires the cashier of each
bank 10 make return to the State Auditor
of all is shares of stock and the State
Auditor IS to assess each share at its
market value. if it has anv, and if it has
none il must be returned at its actual
value. On this assessment the State tax
is caid to the State Auditor who certifes
to the officials of each county the number
of shares owned in it and their value, and
it IS or this valuation that the holders
Of the stock must nay tax.
The point on which the committee d-
vided was that of actual value"-how it
was to be arrived at. Part of the COM
mittee thought the cashier the proper per-
son 10 dX this value. Others wanted to
prescribe the method by which the "ac
tual value" was to be ascertained. Fin
ally an amendment. in the nature of
compromise. was adopted. whereby it is
prescribed that the actual value" of
such shares as have no market value shall
be obtained by adding together the capi
tai stock, surplus and undivided profits
and divide this amount by the number Of
shares, after deducting the insolvent
items owned by the bank-an itemzed
sworn statement of such items TO be
furnished the State Auditor by the
cashier
Section 5-"Tax on Corporate Loans
was adopted without opposition, and the
committee then adjourned till o'clock
tonight.