The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1908-10-22
THE TAX laws

THE TAX LAWS
Now we come TO the consideration of
the new tax laws. Previous to 1904.
when the first of the new tax laws
was enacted. the great bulk of the
state, county and municipal taxes In
the state had been raised off of real
estate. Assessments were not equal
or uniform. AS whole they we're
low and the rate of levy was there
fore necessarily high.
One special evil Of the cid system
was that intangible property such as
notes, bonds. and money in bank,
very generally escaped taxation. The
reason was apparent. With tax
rate averaging two and one-half cents
on the dollar. the owner of note
earning only 9 per cent interest or OF
money in bank earning only four per
cent. felt that the tax rate was
nothing less than confiscation. The
temptation not to return such property
for taxation was so great that 1t be-
came a custom, not to say a rule,
to do so. In the few cases in
which 1t was returned for taxation
the high rate imposed heavy bur-
den. practically cutting in two the
income from such property. Either,
therefore, this class of property was
not taxed at all which was unjust tothe
holder of real estate. or 1t was heavily
taxed, which was unjust to the own
err.
Another great evil of the old sys-
der valuation of railroad. street rail-
way. pipe line. telegraph and tele-
phone property. With many great
corporations owning public utilities.
widely scattered over many counties.
the escaping of taxation had been re-
duced to science. Neither the state
nor the local assessors possessed adj
equate power to ascertain the real
value of their property: and as a
result of the loose and slipshod meth
cd then prevailing. most of this kind
of the property was assessed at from
lone-eight to ore-sxteenth of It's real
value.
/, One other evil was apparent. One
, form OF property namely. mining
lease-holds. being chattels real. had
become numerous in this state, in the
ten years previous to 1904.
Leaseholds were contracts of
ownership under which many of the
great oil. gas and coal companies in
this State controlled their undevelop-
ed holdings. In recent years these ha 4
enormously increased in value. They
were bought and sold in the market
and were just as much property as any
other: yet. previous to 1904. not a
dollars worth of this property had
been taxed. 1t was right and proper
that this form of property enjoy
| ing the protection of the law, like any
other property, should bear its equal
burden of taxes.
Now how did the new tax laws
remedy the evils of the old system,
explained above"
The essential principles of the new
laws werc as follows:
First-Thc valuation of all proper
tics at their true and actual value.
Second-The imposition of various
license taxes. sufficient to maintain
the States revenues. the gradual re-
moval of the direct state tax of 20
cents on the 500. and the relin-
quishment of direct taxes by the
State to counties. districts and towns,
the State reserving the revenue from
the Indirect or license taxes.
Third-The creation Of tax de-
partmcnt. empowered and equipped
ito enforce uniformity and correct
continued evasion of the laws, either
by county officials or by individual
tan payers.
1t is not possible IN this article to
give the details of ali tax laws, as
they have been passed and amended
from time to time; but broadly
speakeing. all have for their purpose.
one of the three general objects above
stated. How have they operated, and
what have been the results?
In 1904 the total value of all real
estate and personal property, other
than public utilities, IN the state. as
assessed under the old system. was
$232.OO0 900. The total valuation OF
public utility property, by which we
mean the steam and street railway
lines. gas and oil lines, telegraph. tel
ephone and express lines. etc., as as
sessed by the state board OF public
works and the county assessors was
was 100000
The State tax rate In 1901 was %
cents for State purposes and 10 cents
for school proposes and total tax
of S9I5,904 was raised; OF this $S34,-
600 was raised from real estate and