The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-07
Taxation in Virginia
Licenses In 17s0-1s60 1---Cnder the Constitution

nv EDGAR sNDENsTRICkER

r, uce,sa tax In Virginia was one of the
chief methods of obtaining revenue pfeValhns
at the time of the adoption of the federal con
stitutton. 1t legacy from the colohiai
financial system an in general until the adop-
ton of a new stat" constitution IN iSoi' II was
characterized by the colonial ciaSsllcatEoh--
ra Their lack of classification. The only changes
we're n gradual growth Of the list Of exceptions
10 the general tax on merchants and an eX-
t,,rsion of license to other forms of businesses.
rrntn 1907 the only license taxes levied even
on merchants and ordinartes. There was no
further change un(n 1914 when the necessity
for raising funds 70 meet the assumption by
the state government of the ]Sl2 war tax
caused all forms Of taxation to be EXTENDED ana
all existing taxes to he raised except tax on
neddlers In 1880 retail merchants were taxed
SIS per annum regardless of the character
If the size Of their business wholesale mer-
chants were taxed $40 in the same manner.
This rate also continued until 1914. The nat
tax on ordinarcs II Sf2.50 in 1900 was changed
TO a tax Of IS per 800 rental, or what amounted
to five per cent of profits in 1907, aud SO was
allowed to remain until 1914. The first tax on
peddIers levied in 1907 at a fiat annual
rate of sac which also continued until 1914
Tl,a a2ailirl the ISL Lax by the
state government caused a considerable increase
in the extent and IN the rate Of the taxation
of property as have already seen. The same
effect was In The license tax schedule. Rates
on merchants, both retail and wholesale. and
peddlers, were doubled. The rate on ordjnaFies
was made to a S8SS fiat license tax In ADDITION.
tax of s27 per annum was levied on peddlers
OF tin goods (Which was really a reduction
since they had previously to pay $500; or $2o
{ n retail druggists or $50 on wholesale drug
slsts: Of s25 on auctiopeers; Of two ninths 81
no ner cent TO half of one per cent Of GROSS
sales at auction according to the amounts; OF
$40 on tobacco dealers, Of tho Tsrtce of 1--WE an
rual suhscrr tions on every newspaper; Of two
/ and three fourths per cent on the 'renfat- or
/ mills and coal pitS. and one and thrd per
cent on tan yards, FORCES and furnaces. Of
$3.50 per annum On physicians, 81 to $50 IN
attorneys according to the amount Of their fees,
and one and one-third per cent of the fees Of
the clerks Of county courts; Of s6T year on
/ nh lotteries and Of 81 on all shows for every
n Hh -inNF "a
will he that in some cases. such as tho
license OF the goods peddlcrs and retail mer~
chants, the tax We're merely exceptions to the
general tax on merchants IN the other m
stances. distinctly taxes were levied
| The lcerse taxes levied in 1874 remained In
force until the assembly, needing the protests
of the taxed businesses and realizing that the
urgent necessity tor higher taxes had passed.
revoked all Of the new taxes except those on
tin goods peddlers lotteries and shows and
| greatly reduced the rest. Retail merchants OF
| all kinds were taxed $40; wholesale merchants,
$50; peddlers $40; tin goods pedilers, $50 and
/ ordnaries, 81. The taxes on lotteries remained
! the same. while the tax shows was made
SIS a year which permitted them TO exhibit
anywhere without additional taxa con-
! siderable reduction. In 1920 the taxes ped
dlcrs and peddlers of tin goods were double
those of 1918; otherwise license taxes remained
without change until 1924. The assembly at
| tits session reduced the tax peddlers from
| $50 per annum 20 SIG, and tin goods ped
dlers to $40. and from SIS to SIS per annuIn
on shows The taxes retail and wholesale
| merchants ordinances and lotteries We're MOI
changed from that Of 1918 and 1920, but two
new forms OF business were taxed and an old
! tax of 1914 revived. The latter on
auctloneers, of whom tax OF $50 per annum
was required. The business taxed were
vendors of silverware at $50 annually and gen
eral brokers at 500 annually. In 1929 lotteries
were scheduled in two classes--Eeneral lotteries,
paying the old tax of $500, and lotteries au-
| thorized by the State paying a tax of $50. The
| following year some more changes are noted
| In the acts. Peddlers paid $50 yearly, auc-
toneers We're taxed, ordnaries had to pay
| sl8 annually besides seven per cent of their
rental boarding houses were taHed the nominal
sum of 81 per annum shows had to pay $40. gen
eral lotteries were taxed at $500 and lotteries
authorized by the State one per cent Of their
receipts
The further development of the license tax
under the constitution of $3.50 will be reviewed
| n the next article.