The county record. [volume] (Kingstree, S.C.) 1885-1975, 1904-03-10
A PECULIAR SITUATION
Taxes on Franchises rlay Not Be
Available.

peculiar and somewhat alarming
situation arose last week when the
comptroller general examined the act
known as the franchise tax law passed
at the recent session of the legislature.
1t was found that it cannot go into eff
iect for one year.
The act provides that every corpora
uon organized under the laws of this
State to do business for profit shall
make report to the comptroller gen.
eral during the month of February.
giving the necessary statistics concern
Ing Its condition. Besides these, all
railroad companies, express companies.
street railway companies, navigation
companies, water works companies.
power companies, light companies, tele-
phone companies, telegraph companies,
parlor dining and sleeping car COM
panles, domestic or foreign, shall also
make reports.
corporations organized in this State
other than those mentioned specially
above, shall pay to the State treasurer
by April 1st an annual license fee of
one-half mill upon ever dollar paid in
capital stock. The foreign corporations
mentioned shall pay a fee of one-half
mill on each dollar Of the property
value owned by them.
The State board of assessors shall
ascertain the gross receipts of these
companies for business done in the
State and for the fiscal year next pre-
ced:ng and this shall be taxed three
mills on the dollar. to be paid before
May l. The penalty for Noncompliance
is $500 and 500 per day after the time
limit has expired
The provisions Of the act do not ap-
ply to insurance, fraternal, beneficial or
mutual protection associations or COM
panies.
The comptroller general yesterday
sent the following:
Il find that the act to require the
payment Of annual license fees by cor
porations doing business in this State
and reports to the comptroller general
was approved by the governor on the
2Sth Of February, 1904. The &C pro-
vided in section l for certain reports
to be made annually during the month
Of February by corporations doing
business in this State, to the comptrol-
Ter general, upon the filing of such re-
ports the corporation is required to
pay by the first day of April or the
first day Of May in each year, certain
capital stock or property Of such cor
poration. The time limited in the act
tor the filing Of these annual reports
has expired for the year 1904. and | de-
sire to be advised whether I can now
require such returns to be filed for the
year 1904. or whether | shall have to
wait until February, 1905. before re-
quiring any reports under this act.
There is no provision in the act stating
when it shall go into effect, and as it
was not approved until February 90,
ii will not &C into effect until March
81"
The attorney general has not yet
rendered an opinion on the subject, but
it will doubtless be along the lines Of
Gen. Jones letter.
The decision of the attorney general
will be awaited with interest. for upon
it depends more than establishing the
mere validity of the act. The State has
been appropriating every year for the
last three about $4,000 more than the
receipts from taxes. and the appr1pria-
tions this year are about $114, 1000 in
excess Of the estimated income from
the ad valorem tax. So unless the
franchise tax be declared operative, the
State will be about 500. 900 behind this
year-Columbia State