The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-07-16

/ or tOWD, anu GAGCPA ShdA SS VA Seo%a 40
sued By incorporated companies which
nav a franchise tax to the State: and
| except shares of stock issued by banks,
| banking associations. trust and Sc
curity companies. which are taxed by
the State.)
| Localities should, and I believe will.
assess at fair market value the prop
critics treal and personally upon which
| they will be dependent for their reve-
nue., and II they do, the rates can be
materially reduced. Fair market values
| with low rates will prove more sat
| isfactory to all interested and will at
tract prospective investors. and the To-
calities will be stimulated to act care
fully and prudently, both in assessing
their revenue and In spending 1t,
which is equally, If not more, impor-
/ tant.
! The local taxes. not the State taxes,
have burdened the taxpayer The
State has for many years acquiesced in
the practice of allowing the taxpayers
| of localities 10 fix the values on which
| to extend her taxes against themselves.
This policy has resulted In gross in
| euualities of assessments throughout
/ the State. the localities. under the au
thority to annuallyfix the rate of levy.
| use a low valuation and high rate,
whilst the fxed enot vartable) rate
| of the State Rad to be extended on the
I low valuation.
Let the localities be dependent on
the values within their borders other
than railroads. etc. and the values
will certainly be uniform in the re-
spectiye localities and will be nearer
market value than ever before.
| The tax laws now in force need
| thorough and complete revision and
adjustment TO remove all double and
excessive taxation where II now exists
I - a ell txxy
mittee deliberately selected.
/ Section 1853 of the constitution con-
tains the following provision:
| Nothing in this constitution
| shall prevent the general assem-
| bly,. after the first day of aJnuary.
nineteen hundred and thirteen
from segregating for the purposes
|. of taxation. the several kinds or
| classes of Dropery. so as to specify
and determine upon what sub
| jccts State taxes. and upon what
subject local taxes. may be
! levied"
! This language clearly manifests the
makers of the constitution intended
after trial OF ten years had been
! fiiven to the constitution as proclaim
ed the general assembly should have
! broad and ample powers for dealing
with taxation and the language used
/ in several places throughout the con-
stitution suggests the makers OF the
! constitution inclined TO the plan OF
| segregation.
The tentative plan of segregation
here presented, if adopted as a whole
/ or in part. will necessttate the repeal.
re-enactment and change of many
laws a duty which can only be capa-
| hly performed, in my judgment, by
| entrusting il to a committee carefully
and deliberately selected, as above
suggested.
Under the foregoing tentative plan
the State releases to the counties.
cities and towns, for taxation prop
erty mot including incomes) of the
/ present assessed value Gin round num-
bers) $739,000, 100000 and takes from
the counties. cities and towns for tax
alton by herself property of present
assessed values Gin round numbers)
\ $3.50. 100000 90. The State yields four
times as much as she receives.
/ 1t will be noticed by examining the
statement appended that in practical
~ all OF the counties in which losses
are shown the taxes received by those
counties from railroads exceeds the
1 total taxes now received by the State
| from all the real estate in those coun-
ties.
\ 1t can very reasonably be expecte-
ed a low rate on intangible property
will result in placing on the tax books
I large amounts of such property not
| there now because of the excessive tax
I rate which often amounts to from
H 3SI-3 TO so per cent of it's earning
1 power, thus will be wiped out many
1 of the losses shown in the statement.
II Attention is also called to the pres
1 ent average assessed value per acre
n Of real estate (not including build
| ings) in those counties in which losses
are shown.
j The statement is compiled with ref
! erence to losses and gains in counties
4 and cities. not in towns; the reason
for this is the data for towns Is not
at hand and that feature can be work
ed out later and will accord readily
with the plan proposed,
Another thing not gone into are the
franchise privileges. etc. granted by
cities, etc, provision for which can be
made in perfecting the plan.
The statement is approximately &C
curate, suficiently SO to show sub
stantially the effects OF the operation
of the plan suggested.
] Summary Of benefits to taxpayers:
No statement income tax. probably
no county. city or town income tax
No State tax on bonds. notes. etc.
and only a maximum rate OF IS cents
tax on $4,000 fair market value by
Il the county. city or town.
4 No State. county. city or town tar
\ on depositors in a State or national
bank. etc. or on depositors with pri-
vate bankers.
Net amount Of capital OF merchants