The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-03-29

+ favor and coming to be more generally
regarded as a practical measure under
! State supervision.
such tax has always prevailed in
( Massachusetts, the present law of that
{ CornmOnWe2i it'll = hich the I.egiSla tuCe re-
/ Gently refused to abandon. imposing a tax
upon SO much of the income OF a pro-
4 fCSSion. trade. or employment as exceeds
/ the sum of secs, but eNempting income
( derived from property subject to taxa
/ ton While this law is imperfectly adj
/ mlnlStered, IL is not infrequently Sug-
/ sested by eminent authorities upon the
subject that a supplementary income tax
( of that character imposed directly by the
/ States. under modern methods of admin
/ istratIon, would b5->s,ule an efficient and
! practical source OF State revenue. In con-
: junction with the principle Of taxing cor
! pOrauGnS upon earning capacity il seems
! destined 10 receive increasing cOnSidera-
/ ton in the several States.
/ Among the most interesting systems de-
/ Scribed by Mr.. ClappertOu are those Of
[ Massachusetts. Connecticut, New York,
, and New Jersey The system in vogue
( ana given especial prominence, \ descrip-
I ton Of the poll tax Of 3 a year on all
/ voters, OF the general property tax, and
I Of the personal property tax system Of the
/ State prefaces the description Of the gen
! erai corporation tax system Mr. Clap
/ pertOn says
The distinctive feature of the system of
! taxation of corporate property in Massa-
/ chuSeItS IS that il Is administered wholly
/ or in part by officers of the State, instead
] Of by local officers
| The general franchise tax, 50 called
! on corporations chartered or organized
I under the laws Of the State. designed to
I reach for the purpose of taxation all the
/ property OF corporations. oEce and once
I 0Eiy, is the most important tax IN the
/ ger eTal system. 1t Is unique in the tax
{ exp rIence of the States of the Union
T ne real estate and machinery Of al
| corporations situated within the State are
/ assessed by the local authorities in com
En.sI with other real estate and personality
and the taxes thereon paid directly % the
| respective towns and cities where the
property is located, the other personally
I and the stock being exempt from direct
| The remainder of the property Of cor
pOratOns Except banks and some other
corporations, taxation of which is pro-
yided for by special statuteSl, as deter
mined by the market value of outstanding
/ shares in excess Of the value Of real estate
and machinery taxed locally, is assessed
| and taxed by the State directly and pay
ment made in the first instance TO the
State treasury; a large portion of the
/ taxes SO raised is then distributed among
/ the towns and cities OF the State
This annual corporation TAX applies to
( corporations of the most various kinds
/ such as manufacturing and trading estab-
I lishments. railroads, street railways, gas
and electric lighting companies. electric
/ power companies, private water supply
companies, telegraph and telephone COM
/ pauieS. and certain insurance companies
This general corporation tax Is assessed
by the tax commissioner of the State
valuation being based upon returns from
the corporations and from local assessors
and such other information as the com
missioner may obtain
Every corporation subject TO this tax
Is required TO return annually 70 the tax
commissioner, under oath of its treasurer,
a complete list Of lis shareholders and
their places Of residence. the number Of
shares owned by each, the anne INT OF
capital stock Of the corporation, its place
Of business. the par value and the market
value Of It's shares on the 1st day of May
and q detaife statement Of the works.
structures. real estate and machinery
subject TO local taxation within the State;
in the case Of railroad and telegraph
companies. TIE whole length of their lines
and the length of so much OF their lines
as is within Inc State; in the case Of other
corporations, the amount, value, and lOca-
ton of all works, structures, real estate,
and machinery owned by them subject TO
taxation vitnoct the State
The ascertained value Of corporate
franchises is then taxed a u rate which
Is regarded as the average rate Of taxa
ton in the State, determined by ap-
pOrtiDnmeEt of the whole amount of
money to be raised by taxation upon
property IN the State during the current
year as returned by local officials, upon
the aggregate valuation Of the preceding
year.
Mr. CIapperton says that. r..Gcr. penal
ties applied with ease and certainty, these
taxes are as a rule paid promptly and
with little complaint The yield of the
general CDEbDEdllDn Ink IN 1870 was SJ1-S,-
$500, Of which 81 - went to cities
and towns, and 81 Ok, S6Zl7 to the State
The Connecticut system is that in the
main all local revenues are raised by tax
ing real estate and personal properly and
the State revenues are obtained from tax
es on corporations. These latter taxes are
for the most part, based on the market
value OF the bonds and stocks OF the cor
poratinns. and their floating dl.lt The
rate now in force IS l per CENT on such
valuation.
The State Of New York is uow strug-
Cling with the corporation frAnchlSe-taX
problem, as eXernplided in the law passed
III 1893. This law has been attacked Wig
Orously by the corporation interests and
as yet it has not been enforced, litigation
still preventing il. 1t Is expected, how
ever Mr.. ClappertOn says. thai this tax
viii yield large revenue and relieve
real estate and taxable personally.
The law provides fO< the valuation of
each special franchise subject to assess
mtnt in each city, town, village, or tax
district by the State Board of Tax Com
InissiOners. and the filing OF a written
statement of such valuations fixed by
said board. preceding each annual as
sessment u property, with the clerk of
each city, town. or village; such VaIua-
tion so fixed being the assessed valuation
on which all taxes based on such special
franchises shall be levied by the local as
SeSSIug officers.
The further taxation of corporations in
the State is described as follows.
In general. the real estate Of all in
COTQOrdJed companies liable to taxation
inclGding that Of quasi-publia corpora
lions. is required to be assess 4 in the
tax district where il is located I'm the
same manner as real estate Of individu-
ais. and the personal property Of such
companies in the tax district where their
principal Offices are located The reports
Of corporations as to personal property
are meagTe. and the assessment thereof
by local assessors Is in practice arDitra-
~ and largely estimated.
THE law also requires the capital stock
of every company liable TO taxation, ex-
cept such part as shall have been ex-
Cepted on the assessment roll or exempt
by law, together with It's surplus profits
or reserve funds exceeding 10 percentum
Of its capital. after deducting the assess
ed value Of its real estate. and all shares
Of stock in other corporations owned and
otherwise taxable, TO be assessed at its
actual value"
There are n addition to these taxes
other specia. taxes imposed on corpora
lions. Among them are capitaI-stock
tax on corporations and a tax on gross
earnings on steam and street RAILWAYS
water gas, and electric companies
The laws regarding the taxation of cor
pOrations in New Jersey are especially
interesting because of the recent tend
ency Of promoters to incorporate their