Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1912-01-17
INCOME TAX LAW
DECLARED VALID
State Supreme Court UphOlds
COnstitutiOnality of Act.
INCOMES OF 1911 AFFECTED
Opinion Delivered by Chief Justice
WinsIow Calls II New System
of Taxation-Brands Old Method
of Making Levy a. Failure.

Madison-The income tax law
was sustained in an opinion by Chief
Justice Winslow of the state supreme
court in the case of the state ex rel
Bolens, versus Frear and others.
After sustaining the Jurisdiction of
the supreme court, the general OBJ
jeet of the law is reviewed, the court
saying that the statute as passed by
the legislature is not a new and un-
tried experiment in the history of
taxation; that it is merely a change
from the old system of uniform taxa
ton of property, which, Ia the
opinion of the court, has proven a
failure so far as personal property is
concerned. The new system, embod-
forth as combination of Two ideas.
namely: Taxation of personal prop
erty, progressively according to the
ability to pay, and taxation of real
property uniformly, according to
value.
The section providing for the taxa
ton of the incomes of nonreSidents.
derived from a source within the
state, and for the taxation of a cer-
tain proportion of the income arising
from Interstate business, are not
passed upon, and a number of other
questions are left for future consia-
Grafton.
AS whole. the court regards tho
law as constitutional, and says that
should any provisions be unable to
stand test, they could not be vital
and would drop out, leaving the law
stand in its fundamental and essen
tial features.
Incomes for the year 1911 are tax
able, and the assessors of incomes
will begin work soon. Enforcement
of the law is entirely in the hands OF
the state tax commission. The ex-
emptions include individual incomes
up to $500. A husband and wife are
allowed $1,000, and for each child
under Is years of age and for each
legal dependent an additional 5000
is allowed.
The rates OF income taxation after
making exemptions are as follows:
First $1,000 or part thereof, per
cent: second $1,000 or part, IA
per cent; third $1,000 or part, / X
per cent; fourth $1,000 or part, / y
per cent; fifth $1,000 or part. per
cent; sixth $1,000 or part, IA per
cent; seventh $1,000 or part, per
cent; eighth $1,000 or part, 31a per
cent; ninth $1,000 or part, 4 per
cent; tenth $1,000 or part, ~ FER
cent; eleventh $1,000 or part, per
cent: twelfth 81 1000 or part, " per
cent; over $4,000 6 per cent.
Income" in the new law includes
the following
All rent of real estate. including.
the estimated rental of residence
property Occupied by the owner; in
ierest from money loaned or invest
ed; wages, salaries or fees derived
from services, except of public Off
Gals; dividends or profits derived
from stock; royalties from franchises
or legalized privileges of any kind;
and all other income not exempted.
Pensions and p0stmaster's salaries
are not taxable Incomes of corpora
tions are assessed by the state tax
commission; of individuals by the
county assessors Of incomes, of whom
thirty-uine will be appointed.
The law coD.emplates that taxpay-
ers shah keep a correct record of
their years income. Stringent regu-
lations to guard income secrets are
provided for assessors, and convio-
ton renders an offender liable to
heavy fine or Imprisonment