The Birmingham age-herald., 1903-02-02
FRANCHISES ALSO LIABLE
Under the Bill the Tax is To Be In Addition to the Present Assess ments-Ful Text of the
 Measure.


 taxation of the capital stock and fran chises of corporations, the same as othel property is taxed.
 This tax is to be in addition to the ta> as now assessed, but corporations paying such franchise taxes shall be exemp from license taxes. The franchise ta' provided for is to be paid to the state county and municipality. board O assessment of the valuation of the fran chlse is to be composed of the state audi tor treasurer and secretary of state.
 The measure is most interesting on and Is in line with MT. London's wei known views upon the subject.
 Following is a full text of the bill which has been referred to the corpora tions committee:
 House Bill Number 3O2. Referred to the
 Committee on corporations.
 A bill to be entitled an act to provide for the taxation of the capital stock and franchise of corporations in this state and for the assessment and valuation of the same
 Section 1. Be it enacted by the legisa- ture of Alabama, That every corporation
 
 addition to the other taxes imposed on it by law, annually pay tax on its fran chise to the state, and a local tax there on to the county, city and town where its franchise may be exercised at the same rate at which other property is taxed. The state auditor, treasurer and secretary of state are hereby constituted a board of valuation and assessment for fixing the value of said franchise, the place or places where such local taxes are to be paid by other corporations on their fran chise and how apportioned, where more than one jurisdiction is entitled to a share of such tax, shall be determined by the board of valuation and assessment, and for the discharge of such othed duties as may be imposed on them by this act The state auditor shall be chairman of this board and shall convene the same from time to time as the business of the board may require.
 Sec g. Franchise-Reports by Corpora tions to Determine Value.-In order to de- termine the value of the franchises men toned in the next preceding section, the corporations, companies and associations -p.entiNned in the next preceding section shall aNrually. on or before the first day of FebruaSy in each year, make and de- liver to theNauato of this state state ment, verified " its president, cashier, secretary, treasufsr, manager or other chief officer or agent. in such form as the state auditor may prescribe, showing the following facts. viz: The name and principal place of business Of the corpo- ration the kind of business engaged in; the amount of capital stock preferred and common; the number of shares of each; the amount of stock paid up; the Tar and real value thereof: the highest price at which such stock was sold at a bona fide sale within twelve months next before the first day of January of the year in which the statement is required to be made the amount of surplus fund and undivided profits, and the value of all other assets; the total amount of in- debteduess as principal, the amount of gross and net earnings or income includ- ing interest on investments and incomes from all other sources for twelve months next preceding the first day of January of the year in which the statement is re- quired; the amount and kind of tangible property in this state, and where situat- ed. assessed or liable to assessment in this state and the fair cash value thereof, estimated at the price it would bring at a fair voluntary sale, and such other facts as the auditor may require.
 Sec. 3. Franchise-Reports of Lines Be- yond State or County.-Whare the line or lines of any such corporation. company or association extend beyond the limits of the state or county, the statement shall, in addition to the facts hereinhefore re. quired, show the length of the entire lines operated, owned. ceased or controlled in this state. and in each county, incorpo- rated city town or taxing district, and the entire line operated controlled leased or owned elsewhere. If the corporation, company or association be organized un- der the laws of any other state or gov ernment, or organized or Incorporated in this state, but operating and conducting its business in ether states as we'll as in this state, the statement shall show the following facts, In addition to the facts hereinhefcre required: The gross and net income or earnings received in this state end the entire gross receipts of the cor roratiOn company or association in this state and elsewhere during the twelve months next before the first day of Janu- cry of the year in which the statement is required to be made. In cases where any of the facts above required are inn DC ssible to be answered correctly or will not afford any valuable information in determining the value of the franchise to be taxed, the said board may excuse the officer from answering such questions, provided that said board. from said state ment, and from such ether evidence as 1t may have, if such corporation company or associs tion be organized under the laws os this state, shall fix the value of the capital stock of the corporation. com pany or associa ton, provided in the reAt succeeding section, and from the amount thus fixed shall deduct the as- sessed value of all property assessed in this state or in the counties where sit- uated the remainder thus found shall be the value of the corporate franchise sub ject to taxation as aforesaid. but the sum shall be assessed in proportion to the capital stock. if domestic corporation; and if foreign cooperation. the assess ment shall be in proportion to the capital employed in this state.
 Sec. 4. Foreign Corporations; Value of Franchises How Determined-If the cor poration, company or association be or- ganized under the laws of any other state or government. except as provided in the next succeeding section, the board shall fix the value of the capital stock as hereinbefore provided, and will de- termine from the amount of the gross re- ceipts of such corporation, company or the proportion which the gross receipts in this state, within twelve months next before the first day of January in which the assessment was made. bears to the entire gross receipts of the corporation, company or association, and the same proportion of the value of the capital stock, less the assessed value of the