The San Francisco call., 1906-10-25
Corporations Must Bear Just
Burden Of Taxation.
State Commission Rec
OInmendS Radical
Changes.

BERKELEY, Oct. "a. - Radical
changes In the method of Ievying taxes
in California have been decided upou
by the State Tax Commission. which
concluded its sfttIngs at the home of
Professor C c. Plehn today. Professor
Piehn, who has acfed as secretary and
expert adviser of the commission, an
nouneed today that the cOmmissiOn,s
report 10 the Legislature is practically
hhlshed, and viii be printed in a fort
night at Sacramento
Governor Pardee and his associates
on the commission have adopted "a re-
report, which, if put into the form Of
law by the Legislature, win almost rev
oiutfonize taxation methods in Calffor-
mia. Public service corporation~ Iii
be taxed by and for the State alone.
this sort of taxable property to be TAX
en- from the control of counties and
cities, so far as taxation involves con.
troll.
he corporations in question are to
oe taxed on the basis Of gross receints
ana the following rates of taxation will
De recommended TO the Legislature:
Railroads, including street railroads
not less than 4 per cent nor more than
per cent on gross earnings
,-rosl Iess companies, per cent on
gross earnings.
Sleeping car, refrigerator car fruit
than per cent nor more than 5 per
cent on gross earnings
. Telegraph and telephone companies
= per cent on gross earnings
Light heat and power companies. not
less than per cent nor more than 5
per cent on gross earnings.
Banks, per cent on the book value
OF the capital stock less the value of
real estate taxed locally.
insurance companies, per cent on
premiums received
General corporation tax. now $50 fat
raised TO l-2o Of per cent on capital
The commissions report viii also
recommend the assessing of real prop
erty at its actual value, and the maxi
ing OF low tax rate in consequence.
The report will be a bulky volume
OF about 500 pages. The expert work
involved in its preparations has
been largely done by Professor c. C.
Plehn, professor Of economies in the
State University.
Outline OF REPORT.
A general outline of the report in
cludes the following features:
Part /: The present tax system
Chapter I, analysis Of the present rev.
enues Of the State; chapter II. analy-
SIS OF the revenue laws Of California,
with comments on their operation;
chapter III, Inequalities in the existing
system OF taxation; chapter ", taxa
ton Of money and credits; chapter V.
taxation Of franchises; chapter VI, city
taxes in California, tables only; chap
ter VII, cost of collecting taxes, tables
only.
Part II: Recommendation-Ch Chapter I,
separation. general argument and IL
lustrations from other States, from
preliminary report; chapter II, separa-
ton in California; chapter III. taxation
Of railroads; chapter ", taxation of
public service corporations, other than
railroads lSection /, taxation of street
railroads; section 2, taxation OF ex-
press companies; section 3, tax-tiOn of
car companies. section 4. taxation of
telegraph and telephone companies;
section 5. taxation Of light. heat and
power companies; section s, taxation
OF pipe line and oil companies); chap
ter Y. gross earnings taxes IN theory;
chapter VI, taxation of banks and in
surance companies (Section l. taxation