New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1910-06-11
WOULD SEPARATE TAXES.

port of State projects from those
upon which the parishes must de-
pend for the money is being
worked out by Senator Favrot.
He may introduce a bill covering
the subject at this session Of the
Legislature or he may hold it over
until the extraordinary session
| Gov. Sanders is thinking of cal
ling for next Oct. The Senator 5
idea is that the special session.
when called, should be limited to
the consideration of but two sub
jects, Code revision and taxation.
The FavrOt theory is that the
State should have one. character
of taxables from which If should
derive the money needed for the
support Of STATE projects, and the
parishes sh uld have another. In
general way. the States province
should be public service and pdb-
lie utility corporations. and the
parishes the lands and personal
properly not belonging to the
service 9nd utility corporations.
An Their Favrot idea is that each
parish should be left to decide
on what basis the properly with
IN its borders shall he assessed.
whether tone-third, one-half or
! full value. and the rate of taxa
ton fixed at the figure IN mills.
sufficient to cover the cost OF the
parish admins ration.
''In that way the State would
| be rid Of the unceaSing grow on
the par of one parish or another
that the property Of its people IS
valued at a higher percentage OF
it's real value than the property
in some other said Senator
Favrot. "Under such a system II
would be none of the business Of
Rapides how much or how little
Avoyelle was spending on roads
and bridges or on courthouse and
jail. Each parish would be a Law
unto itself as to the amount it
cared to spend for public pur-
poses. Under the system we now
have this Legislature is pulled
and hauled this way by one fac
ton in one parish and that way
by another from another parish.
and each parish is satisfied that
it is getting less than its just de-
serts and that all of its neighbors
are being more highly regarded
by this body than it is
The Favrot idea is that the as
sessment on property. reserved
for State assessor or assessors and
that the tax should be RENTED
direct to the State Treasury by
the taxpaying corporation, thus
saving the fees now paid to par
ISL tax collectors for gathering IN
the harvest in tax money usually
paid in currency of the realm in
stead Of by checks.
Mr.. Favrot believes the State
can get revenue sufficient for all
State purposes by the proper use
Of its natural resources and the
tax on corporations. not on their
tangible property. but upon the
intangible value that attaches to
going concern by reason of the
fact that it is in operation. An
express company is as good an IL
lustration as any that could be
used. The value Of the horses
and wagons it uses in transacting
its business in Louisiana is not the
thing of greatest value. 1t is the
name and the method Of doing
business, all made possible by the
permit given it by the State,
That State can levy a tax
upon the amount of business done
in Louisiana without coming into
conflJt with the Federal author
ity to regulate commerce between
the States. has been settled in the
Supreme Court of the United
States. Such tax is not tax
upon interstate commerce within
the meaning Of the Federal Con-
stitution and the constructions
placed on the commerce clause.
For example, if an express com
pany is capitalized at $50,000,0O0
and employs fiftieth part of its
assets in carrying on business in
Louisiana tax upon that fiftieth
part would be legal.
The same rule would apply. to
railroad, telegraph and telephone
companies, as well as electric light
and water companies. But, the
State having seb aside the class
of companies mentioned for its
own support in the imposition Of
taxes, the parishes would not be
at liberty to lay taxes upon eth
er the tangible or intangible prop
erty Of those corporations. They
would be confined to the lands
and improvements, the corpora
tions doing business not already
set aside for State revenue pur-
poses and such excise exactions
as are now laid.
In the matter Of road building,
there would have to be co-opera-
ton. between the State and the
parishes, but each parish would
be ait liberty to undertake road
Improvement without waiting for
the State to act, and the same
would be true with regard to
schools and any other projects the
parishes care to undertake.