Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-04-25
The Bank Assessment Problem

Ordinarily 1t is supposed to be the
duty Of the editor to explain the things
he talks about so clearly as to be within
the comprehension Of any man who
can read; but as the outcome Of all the
studying we have been able to give
this problem Of equalizing bank as-
sessments, we will have to acknowl-
edge that we are at loss, and we feel
like dismissing the matter with the as
sertion that the board Of equalization
has our sympathy.
A careful reading Of the report Of the
proceedings of Tuesdays meeting of
the county board Of equalization will
give a comprehensive grasp Of the
problems that confront the board; but
as to how those problems are to be
solved, is another great big question
that lacks a whole lot Of Qualification.
The business of the board is to
equalize the taxes Of the banks so that
each bank will pay taxes in exact pro-
portion to the other banks, and then
also there is more or less obligation to
equalize the bank assessments, with
the assessments Of individuals.
Now while the law requires tax re-
turns to be made on a basis Of actual
values, it is a we'll known fact that this
law has never been observed, and that
an individual taxpayer would not be
allowed to observe It, even If he 30 de-
sires. There Is rule that assumes to
assess all property for taxation. on a
so per cent basis; but as matter OF
fact there Is no closer observance CT
this rule than there is Of the 100 per
cent basis.
AS an elementary proposition, 1t is
easy to understand that there Is very
little difference whether the basis be
so per cent or 100 per cent, SO all re-
turns are equalized on the same ba-
sis, and there is the rub. Owners OF
realty return their property for taxa
ton at anywhere from so per cent OF
actual value down, and the problem OF
the board Is to equalize; but as Is well
known, equality is seldom attained
The bank values are more easily ar
rived at than real estate and personal
ty values, and as it Is so we'll known
that individuals never return property
at full value, or even at half value, II
half value be made the standard, the 90
per cent reduction in the case Of banks
was made for the purpose Of giving q
show Of justice. But the banks, know
ing that at the last they have to pay
more than individuals pay, are nat
urally solicitous about getting their
assessments down to the lowest possi-
BILE figure.
While these observations explain
the difficulty in q general way. they dc
not offer a solution. 1t Is the solution
of the difficulty that is troubling the
comptroller and the board of equaliza
ton.
Among the questions involved are:
What bonds are actually exempt from
taxation, and what are not?
II a bond Is exempt from taxation
should it be subtracted from the tota
value of the banks shares before set
ting off the so per cent liable for taxa
tion or afterward?
AS we gather the idea Of the comp
troller from what he says in his letter
to the auditor, and in his notes on the
assessment blanks of the various banks
he holds:
l. The South Carolina Brown Re-
demption bonds are unquestionably
exempt from taxation.
2. County, township and school dis
trict bonds, issued under a statute con.
tanning a provision that seeks to ex-
empt them from taxation are in a diff
ferent class from the Brown bonds.
8. United States bonds. including
the Panama bonds, are taxable wheth-
er held as a basis Of currency issue
or as a simple investment.
4. The Brown bonds may be sub
tracted after striking so per cent line
on aggregate value Of shares, and al
other nom taxable bonds must be sub
tracted before the 80 per cent line Is
struck.
AS to whether the United States
bonds are exempt we do not know. They