Evening journal., 1913-01-17

the Oidlc treasurer rs ncltDl dulnOI-
led to pay from time to time cut on
said appropriation, orders on account
of such expenditure, signed by the
President and Secretary of said Com
mission and approved by the Cover
nor
Approved March 80. A, d. 1911.
TO THE GENERAL ASSEMBLY OF
THE STATE OF DELAWARE
Pursuant to the provisions OF the
foregoing Act, the undersigned mem
bers of the State Revenue and Taxa
tion Commission, thereby created
present this report.
The Commission organized on the
Thirtieth day OF March 1911, by the
election of Hon. Philip l.. Cannon,
President; Hon. George w. Sparks.
Secretary, and Philip L. Garrett, At
torney.
For the clearer understanding Of
this report and to save others a task
involving no inconsiderable expendi-
ture OF labor, we append hereto the
following:
l. A summary of the present tax
laws of this State
2. A schedule of the most import
ant general tax laws in Delaware be-
ginning with 1921
3. A schedule OF special railroad
legislation i'm Delaware.
Some Recommendations
The importance of the third sche-
dule lies in the fact that many of
these Acts have or had a more OF
less direct bearing upon our revenues.
We earnestly recommend tho crea-
finn .Df a
Taxation Commission to continue tbs
work of the previous Commissions
that inequalities may be met and to
propose laws to meet new conditions
as they arise. This Commission may
not be as many in number as has
composed the previous Commissions
The salient feature OF our tax sys.
tenn is the sharp separation of the sub.
jects of State and local, J. O.. county
school and municipal taxation. Loca'
revenues are derived from property
and poll taxes. while the State is sup
ported in the main by corporation and
franchise taxes and business or Oc
cupation tax Licenses.
In many respects this arrangement
is both simple and rational In Del
aware the county and the school dis
trict are merely subdivisions of STATE
Government The maintenance O
Courts, roads and schools. the custody
Of criminals and the care of paupers-
all these are concerns by the State al
whole. Their commission to th'
local authority does not IN fact rem
der them local i'm character. A tal
paid to a County or a school distric
is a contribution toward the eXpens'
of the State government quite as mucl
as though il passed into the Stat
Treasury direct Every citizen owe
the duty Of. bearing his just proper
ton of the burden of public expense
That duty is performed when the sun
total Of the taxes paid by him con
stitutes such proportion, regardless
of whether those taxes are HANDLED
| by the State or the County Treasurer
The facts must be borne constantl
in mind in order to give an intelligen
consideration to the equities of tax
alton. They prove that the distinc
tion between State and local taxation
as those terms are here employed,
one of fiscal administration merel,
and does not affect the all-importan
question whether the tax burden
eQuitably distributed and that it j
the sum total of the taxes paid b
each taxable and not the ultimat
destination Of such taxes that fur
nishes the true answer to this Ques
ton. Suppose the case of two tax
ables, A and B, and that each pay
an annual tax aggregating 500, bu
that half of AS tax goes to the Stat
Treasury while all of BIS goes to th
County and school district. Here.
A and B are of equal financial abil
ity, the tax equities are even. Chang
the aggregate of the tax payment an
the equilibrium is distributed; chang
the destination of the payment and tn
scale is not turned.
It must now be manifest that whel
your Commission was considering tn
propriety of adding new subjects 4
the list of those now taxed for tn
benefit of the State Treasury, or o
increasing the rate upon those al
ready listed for that purpose, w
were constrained to take into accOun
the so-called local tax laws. For ex
ample, while land pays no State tai
'so-called. il bears the greater part O
the weight OF local taxation
would be patiently unjust to subiec
it to both classes of burdens withou
first proving that the load il now car
ries is relatively lighter than tha
borne by other kinds of property
This certainly cannot be done in re
gard to local taxation. for the pol
tax is of subsidiary Importance Will
the tax on all forms of property othe
than real estate is practically con
fined to the class of personality use
by the agriculturist. The only resul
Of the assessment in the school dis
trict of real property at its rental an
Of personal property at its actua
value is a discrimination against tn
farmer who owns his land as we'll a
the tenant farmer. II is a relic of tn
ancient favoritism of the landlor
which has no justification in latte
day conditions. IL was based on tn
fallacy that a free school is a loca
institution to be supported I'm N
main by those whose children Nigh
attend it. The same kind of argumen
would require that the property of
nonresident be taxed for county an
ihuhl'. pal IhA boo'o CT a. AoN'l I az
or on a lower base than of a residen
The apportionment of the subject
Of taxation between the State and il
subdivision before referred to. seem
to be attracting some favorable al
tention in the country at large an
we have found no sufficient reason {
advocate its change at this time Thi
involves the conclusion that no Stat
tax should be imposed upon land q
any class Of property now exempte
from such tax which already bear
the burden of local taxation. II ais
rondors irrelevant anv cOnsidcratio o