The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-03
Taxation in Virginia
Colonial T-axations.-I. The Beginnings.
ny EDGAR sYDENsTRICKER

Colonial Taxatons.-I. The Beginnings.
The present system Of taxation in Virginia is
very much the same in principle as the system
in the Virginia colony. 1t has grown in scope,
but it is not greatly altered IN fundamentals
This fact makes a brief review of colonial taxa
ton Of more Interest and value today than mere
~ a bit of ancient record, for 1t Will serve par
TALLY to explain the reason of the methods or
obtaining revenue for State purposes today.
Taxation as a governmental function did not
exist in the Virginia colony during the period
from 1907 to 1919. During this time there was
no government in the ordinary sense of the word,
for the colony was in the hands of a stock COM
pany composed of London merchants and Eng
lish statesmen, who had undertaken the enter
prise. some for the purpose of establishing a
community for prosecuted and disaffected per-
sons in England, and others as a purely bust
ness enterprise by which It was hoped that the
finding Of gold. the founding of industries and
the growth of a new ommerc would bring to
them substantial return. The civil affairs. there
fore, of the little community which partly cx-
listed and partly starved in the wilds OF the Viz
Finia forests. were administered in very much
the same way as a lumber company would at
the present time manage one of its camps. The
control Of the community was In the hands OF a
board OF six councillors appointed according to
the terms of "A charter granted for business
purposes to a stock company.
with the assembling of the first house Of
hurgesses. In 1919 however. there spra1g into
existence a government, and when the charter
of the London company was annulled by the
king in 1924, this government was the only one
that existed In the colony. Almost Immediately
came expenses to he met and the necessity for
a budget. which entailed a system of revenue,
A conflict arose between the company as an in
dustrial organization and the colonists who com
posed the body polite during the Ave years
after the calling of the burgesses. and one Of
the reasons for the fall of the company, was the
very question Of taxation. The council or board
of directors of the company attempted to die
tate to the burgesses through their governor. or
resident manager, what taxes should be levied
by them. with the result that even at this early
stage of the colony's history the representatives
Of the people rebelled against being coerced in
this fundamental matter.
With the passing Of the control Of the colony
from a private stock company to a political
government, a radical change was to be ex-
pected in Its fiscal affairs. But while this change
came, the development Of the financial system
Of the colony was extremely slow, and the colo
NAL budget bore few of the marks Of govern
mental finance until the war against the In
dams and French called for a greater revenue
and hence IA more extensive taxation. The tardi-
ness Of it's development was in a large measure
due to the hindrance put upon 1t by the con-
tinual strife between the royal governor and the
assembly over the controI-not OF the manage
ment of the public moneys-hut the power OF
taxation. From 1924 until 1929 there was an
increasing tendency towards "a distinct separa-
ton of the taxing powers Of the representatives.
Of the old sovereignty and the ncw--the king
and people, The salary of the governor at this
time was paid out of the royal treasury, while
compensation for the services of officers Gre
ated by the assembly were defrayed by the pas
sage of their own revenue acts. Thus two gov
ernmental budgets existed at one time. In 1893,
however. the burgesess fatty asserted their ex-
elusive rights of taxation, and paid the COVER
nor a salary equivalent to 1000 commissioning
which was met by a poll tax of four pounds OF
tobacco.
Several attempts were subsequently made by
the governors to take a hand in the fiscal man.
agement of the colony-so far as taxation went
berkeley. for example, suggested in 1861 that
two members OF his council be allowed to act in
an advisory way with the assembly committee
On taxation but without avail. IN 1888 the
governor tried to levy a small tax Independently
Of the burgesses; failing in this, he attempted
to levy special license tax on lawyers and school
N 9fprE n md on nrOhate of Wills. hlt the 0DDOEi-
ton was so strong that they were repealed the
next year by royal order. This determined OPP
position on matters of taxation had it's chief
effect III that only such taxing was done as
was necessary to provide revenue to meet the
expenditure of the hour and these perfGrce were
few and elementary.
SO that taxation was not an oppressive thing
these early days of the colony, Taxes were
levied. too, for some special object. The revenue
system Of the United States at the present time
would have appalled, our forefathers not because
of its magnitude alone. but because those upon
whom the burden of paying the taxes rests are
now to "A very considerable extent ignorant OF
tho exact. purpose, for which. the money. is to.
a poll tax of one pound Of tobacco was levied
IN l619 to pay the salaries of the assembly off,
GERS; five pounds in 1923 for defense against
the Indians; ten pounds in the same year for
certain debts incurred for special and known
purposes, and four pounds for the expense of a
commissioner to England to represent the colony
against the efforts of the royal party. including
Captain John Smith, who were trying to do all
they could to injure the colony's political free
dom.
Local taxation was, Of course. necessary as
soon as the counties mad established a judiciary
system of justices Of the peace and a county
court. In 1929 every freeholder was required
to deposit every year in the public granaries one
hushel Of corn for this purpose. Furthermore,
much Of the expense of carrying on government
tai affairs was met by a system Of fees. The
inspection Of tobacco, for example, was paid
for by the planters themselves In being re-
CURED hX, acts of the, assembly ia rfeete Il rertnIrf
charge before their crop could be loaded on
board the vessels which stood at the numerous
wharves ready to carry ii over the seas to satisfy
the demand for the new weed" fast becoming
popular among the gentlemen Of the old country.
Even In times of war with the Indians the
hurgesses enacted laws which required the colo
nists 10 support soldiers by private means, as In
1884 and 1879. NJ
Soon there came a distinction between in
direct and direct taxes, as we shall see.