The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-14
Taxation in Virginia
The License Tax-The Origin and Development
of the Present System.
ny EDGAR syDESsTRICKER

Up TO within a very few years Of the adoption
Of the constitution OF 1861, the Virginia system
of taxation was continued to the following
methods:
Taxation Of real property.
Taxation OF a limited number Of articles of
personal property, including slaves.
Taxation Of inheritances.
License taxes
The growth of the tax system prior 10 1851
was n the license tax. Until the constitution of
1856! put personal property on the same basis
as realty property-and there was strong oppo-
sltton to he taxation Of personal property on the
part of the richer Eastern planters, who con-
trolled the legislature. up to that time-the only
room for expansion was in the direction of Ii
ccnses; and shop-keepers and their kind IN those
days had not risen to the power or the dignity
of the present-day business man. When the
State government assumed the Virginia quota
of the federal war of 1912, tax and more reve-
nue. needed, the property taxes were nearly
doubled, it is true hat the existing license taxes
were only greatly increased, but extended to
other business never taxed before, And when
the burden of internal improvements which
the State had undertaken. pressed each year
more heavily upon its treasury, the license tax
still further extended during the ante
bel!nm period.
The constitution of 1851 was framed by
convention in which for the first time the small
farmers of the middle and western section Of
the State had the control and the system If
represer tation was extended so as to nlloW Them
tn continue In control. We shall later on, when
we come to the discussion of the development
of the corporation tax and the property tax, see
how they dealt with the extension of taxation
In other directions. But in 1850 the policy of
exaCtng a license tax from practically all we'll
established businesses and professional voCations
had been firmly established. Since that time
this policy has simply been continued. 1t is
unnecessary to enumerate the gradual addi-
tons to the license tax year by year The null
tiplicaton of the kinds of service, be it
camille. amusement vocational which has
taken place in the growth of civilization since
that time, has afforded the multiplication of OPP
portunities for taxation by the license method
AT present the State taxes practically all kinds
of business do the localities with their in
creasng demands for revenues. With almost
identical methods, the same system was in ef-
feet half century ago.
To summarize the history of the license tax
in Virginia in n paragraph, them
The license tax has grown with the develop
ment of the kinds of services that men render
each other for remuneration. Practically un-
heard of in the colonial period, IL first rec
ognized a source of revenue under the last
of extraordinary demands upon the treasury in
1914 and thereafter became increast ngly
important source of revenue during the period
Of sectional strife until 1851, because Of the
hclplessness of those who subjected to the
investors who refused TO extend the taxation of
personal property and of public service enter
prises But by that time ii had become so well
established that ii remained a recognized method
Of obtaining revenue for State and local pur-
poses Its relative Importance as revenue pro-
Queer has. of course. greatly decreased. In 1S4S
license taxes. including liquor licenses, contrib
uted 2s5 per cent of the revenue of the State:
in 1912 license taxes. including lquor licenses
and dlspensaries contributed bat 1874 per cent
of the total State revenue. This, is due to the
growtng importance OF other sources q revenue.
N TX course. NJ Ek 81