Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-02-27
Senator Murdock'S Measure is De-
clared to be Constitutional,
VERY FEW EXEMPTIONS.
Provides severe Penalties for False
Returns by Iadividuals or
Corporations

J An income tax bin which was In
hcduced in the state senate yesterday
by Senator Murdoch has been declared
constitutional by Atty-Gen. Breeder
Notwithstanding an opposite view Aker
by Senator Love. who was TO have IN
troduced the measure. Representa-
tive spry today, by request, brought
Into the house bill having a similar
import, and it was referred to the ju-
dietary committee,
IT'S PRVIsIONs.
The bill Of Mr.. Murdoch provides that
il shall go into effect on JAM l. 1904,
and makes a straight 2 per cent tax
ON all net incomes OF $1,000 or over IL
requires the report Of returns showing
gross receipts. expenses, amounts paid
In interest, annulties dividends, per-
manent improvements salaries ana
ccmpensatons The income tax Is due
and payable at the same time as are
other taxes and the revenues derived
therefrom are TO go to the state school
fund. The items covered In the list or
those assessable under the measure In
clude the following
Incomes derived by any person In
the state from all property owned and
every business, trade, profession, em-
ployment or vocation carried on in the
state.
Derived by any person residing out
side the state from the same sources
within the state.
Net profit or income above actual
operating and business expenses from
all property owned and every business,
employment or vocation carried on Ia
the state of all corporations doing bust
ness for profit, no matter where Great
eA OF organized except for charitable,
religious, educational or scientific pur-
POSES,
In estimating the gains, profits and
income Of any person there shall be
Included all income derived from in
terest upon notes, bonds or other Sc
curltles, except such bonds as are eX-
cmpt from taxation; profits from the
sale Of real estate, including leasehold
purchases, dividends, premiums on
tonds, notes or coupons, the amount
of sales Of movable property less cost
Of purchase and removal, and money
itiuhil NolSuiutu w SUI VI ldiillgf
the value OF all property acquired by
gift or inheritance.
Corporate incomes shall be so report
co as to include all amounts paid or
r6yable, distributed or distributabe TO
and monies devoted to
Improvement or construction account
and investment paid from net annual
profit
SOME EXEMPTIONS.
Some exemptions are noted, which
the following:
Necessary annual expenses actually
incurred In carrying on any business,
trade or profession. or In managing
any property, shall be deducted, as well
as Interest on existing indebtedness
Taxes and license fees, trade and un-
assured fire losses and other business
IoSses also to be deducted.
Income tax not to be levied upon
corporation dividends when the same
Fave been assessed through the cor
D0ration.
To head Of family a deduction Of
y 900 is made
SOME REQUIREMENTS.
Corporations required TO make an.
1ual sworn statement Of gross receipts;
expenses exclusive Of interest, annui-
les and dividends: the amount paid on
recount OF interest. etc; amount ac-
ually expended on permanent improve
nehtsi name and amount of all salaries
aid 20 employees In excess Of 5000
Assessors given power TO summon
rtrsons or corporation officers TO tes-
ily concerning incomes; wilful mis-
presentation IN an answer being con
iltuted a perjury, felony punishable !
~ imprisonment In the penitentiary. !
Books to be Kept by corporations or
Inns open to inspection OF assessor
PENALTIES.
Refusal to schedule income TO be |
net by non-appealable assessment by |
assessor False returns penalized by |
Idditlon of 200 per cent to assess
nent,