New-York tribune., 1903-02-03
cor. ODELL'.S Plans.
Sources of ReUenue Outside Of Fran
chiSe T'arQtlOR.

Albany. Feb . tspecaD.-The condition of the
taxation laws of the State especially of the
Special Franchise Tax law. is perpiexins 'he
Republican State officers and the leading Re-
nrblieau members of the Legislature. Action
upon the law declared unconstitutional by the
Appellate Division of the Supreme court ihlrd
Department, be deferred until the court OF
Appeals passes judgment: and there is cohsio-
era bic hope felt that the legality of the act In
question will he maintained. But additional IN
direct taxes must be imposed if the present al
most total abolition of direct State taxation is
to he continued.
Governor Odell said in his annual message TO
the legislature:
The estimated indirect income for the year
ending September 30 1893, is Sl',NWoVb, ana
assuming that the appropriations for that year
are $23 100000, there viii be an apparent short
age of about 81 2SofsNa. even though the entire
surplus were used for the payment of appro-
uriations. From these figures ] estimate that
new revenues amounting to $5,5OoJno ara neces-
sary. and it becomes first duty, therefore. to
provide ways and means for this increase
The States revenues come ID from direct
State tax which this year amounts to about
$4,000; 90 from a collateral transfer tax.
which is of varying quantity, and which it
may he fairly assumed will give on the average
S3090o1A year; 90 from the tax on corpora
tions. which amounted the last year to Sb,22o'-
600 "a from a tax on the organization OF cor
porations, which will probably amount to $500
0o0: 90 the liquor tax. which will probably
amount To 81 100000 In addition To those taxes
there are several other sources of revenue.
which in the aggregate, with the other taxes
mentioned bring UP the receipts to between
100000 and S17, 100000.
The taxation of corporations promises to be
thoroughly considered by the legislature. The
of a
tions is supposed to be taxed locally. The CAPT
tai stock of each corporation is assessabe at
its home office. In addition to such taxes, cor
porations according to the business which they
conduct are assessed d franchise tax upon their
capital stock employed in New-Iork State, ac-
cording rate of dividend declared and the
amount heretofore mentioned. $6226.0O0, is what
is received by the State from this source-none
of which goes to the locality, but all of which
is applied, together with the other indirect
sources Of revenue reduce general taxation
for the support of the State government. 1t
should be added that small part of the cor
poration taxes mentioned are derived from tax
ing the surplus Of savings banks.
Governor Odell, with the aim of abolishing
direct State taxation, recommended that the
rate of taxation upon mortgages should not ex-
ceed four mills, and estimated that such a tax
would net SS,000000 annually; and said that II
tWo-thirds of this was awarded to the localities
they would have about $5,350,0O0: and if the
State was granted one-third of the amount it
would have So $50 900. He also estimated that
if the Franchise Tax act should be amended so
that tax could be assessed upon gross earn
ings at double the present State tax, a revenue
would be derived from the mortgage tax and
the amended Franchise Tax law amounting 70
So. $50 900. For further revenue he recommend
ed tax on notary certificates and on the re
Cording of all transfers of property-taXes that
he thought would raise Sl,9ott,UyO, making a
grand total of new revenue of S5,4SOOOD
The abolition of the direct State tax would
eliminate the question of the equalization OF
State taxes among the various counties The
final equalization table of the State Board of
Tax Commissioners for the year 1902 shows
that in the county of Clinton, for instance, real
estate, which legally should be appraised at 100
per cent of its value, is actually appraised at
only 80, and therefore the State Tax Commits
sioners SO 'equalized it," In Allegany County
the percentage of "equalized value" IS 10: in
Chautauaua County, 80; in Cortland County,
81; in Jefferson County, S3 in Monroe County,
90: in New-York County, 81; in Herkimer, 81; in
Kings 6S; in Queens. 50; in Richmond, 20; in
Westchester, 90
II is felt that there will be little legislation re-
earding the Franchise Tax act until after the
Court of Appeals makes its decision that
law The sum of SIS 600 900 in taxes is involved
in the fate of the law. Some of this money has
been paid over to the local governments, and
legislation may be needed to permit of its return.
if the Franchise Tax law is declared TO be un-
constitutional