The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-28
BASE TAXATION ON
ACTUAL VALUES

CONTINUED from First rage
protect tie locality. but VIII give the
State basis on which to demand a
equitable assessment. 1t recommends
that no commissioner OF revenue.
acting as land assessor, be permitted
to return land book showing an
average valuation Of lands lower than
that fixed by the State.
Determined to accomplish these
results a. the least possible cost, and
declaring itself against the creation
OF needless new Offices, the commits
sion recommends that the proposed
commission be composed Of the gov
ernor, the president of the Senate. the
speaker OF the Hous OF Delegates.
the chairman of the Corporation
Commission, the chairman of the
finance committees OF the House and
Senate. the encouragement, the
auditor and the treasurer. All OF
these officers are to serve without
pay, and there is to be but one paid
official connected with the commits
sion--an executive officer who is to
gather material and supervise the
general work OF assessment
Corporation Taxes.
\ significant part OF the report re-
iates to the taxation Of public service
corporations. The commission points
10 existing inequalities in respect 70
these taxes. and shows how the pres
ent system is unsatisfactory in some
respects. 1t suggests that as soon
the decisions Of the courts Will
permit the public service corporations
be placed on a gross earnings basis
Of taxation. which IL declared to be
the most equitabi system that can be
devised. The commission likewise
calls attention 10 the report on this
subject prepared by DR. Freeman. the
secretary of the commission. in which
the latter recommends system OF
gross earnings taxes for railroads.
which shall be adjusted according
TO the ratio OF operating expenses To
total gross earnings This plan the
com mission recommends for further
study putting itself on record as ia
voring the general plan. In the case
# other corporations. the commits
sion approves the present registration
system. recommends that the tax on
express companies be increased from
So the mile operated to $3.50, that
tho tax on passenger car service cor
porations be doubled. and that freight
car service corporations pay on the
property used in the State. The conf
mission likewise recommends that
the present offset OF 10 per cent on
their taxes. allowed banks, be ahol-
ished The policy OF the state, it Is
argued. should be to bring all prop
erty to standard valuation rather
than ~ allow any offset or under
valuation No changes In insurance
taxes ere recommended.
A significant feature of the report
IS the unqualified recommendation
ct
other evidences Of debt" be reduced
to - cents, and that the local tax
be limited to the same figure. This
system known as the Maryland
plan" il recommended as working
successfully in other States to IN
crease the amount Of Intangible per-
sonaI property reported for taxation
II is also recommended al q reason
a BILE concession to class OF property
already overtaxed.
E.>emptinx Municipal Bonds.
The commission likewise recon-
mends the complete exemption from
local taxation OF all bonds issued by
Virginia localities where such bonds
are net taxed by the locality issuing
them The commission points out
the injustice Of allowing a locality to
issue bonds for public improvements.
and then permitting another local.
ty to tax the same bonds and thereby
to limit the market for them.
Income Tax.
The income tax is given much at
tention in the report OF the commits
sion. 1t 10 recommended that all
firms and corporations be required
to report the amounts paid by. them
to any individual in excess Of $1,000
the year. such reports to become
prima facie evidence OF assessment.
This IL regarded as a most important
modification Of the English income
tax. and IL expected to make tn. tax
much more productive.
The commission also recommends
nine changes In the specific licenses
though 1t suggests no immediate
change In the general mercantile IL
cense. The most important changes
proposed in the SPECIFIC items OF the
license schedule are those to double
the pawnbroker's license and to re-
duce by so per cent. the rate OF In
terest, allowed: to put the medicine
vendors license at 500 instead Of