The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-22
I axation in Virginia
The Corporation Tax.-E, From 1880 UnuI the
Present Constitution.
By EDGAR sYDESsTRrCKER


Corporation taxation under the Underwood
until 1880, largely upon the prop
erty principle, was as we have seen. prae"Gaty
cerned The general assemblies OF lS79-lSSo
and of 1S81-1SS2, however, made some thofoush-
going changes in methods ana with as
ACKNOWLEDGING increases in revenue. Under TINS
system corporations were taxed until the present
went into effect
For the purpose Of brevlty and clearness,
win take up in order; (a) local taxation CD
State taxation changed 10y the acts OF 1871
1892: and tc) the operation OF the tax
L. Local Taxation--Prtor to 1880 for several
years, some cities in Virginia had been given
special permission in their charters by its legs
lature to tax the property OF public service
corporations, including the rolling stock OF rail-
roads. This continued untll the present con
stitution, when some changes were MADE ne
counties however. had been prohibited from
such taxation. AN act passed by the assembly
Of lS79-1S80 granted the counties the right to
lax he real property of corporations. the value
Of which was assessed for both local and State
taxation In manner described below in conhec-
ton with State taxation -
2 state Taxatlon--The assembly OF 1sst-1sS2
provided for two methods Of taxation prop
erty tax and franchise tax in the shape OF a
net earning tax. The property tax was, OF
course, the same for all property. four nttls
the dollars valuation. Every pubic service
corporation trailroad, telegraph, telephone, toti
bridge. ferry, canal express, steamboat ana
steamship. stage and sleeping car, and other
transportation corporattonsl, was required to
furnish annually 10 the state auditor a state
ment showing the extent and the nature OF
It's real and personal property These stare
which assessed the property. Notice. or assess
ments given. of course For purposes OF
loca! taxation these statements contained esti-
mates Of the property located in each county
or township, which raised by the board of
public works If it saw fit. The mill unit sys-
tenn was followed on railroads; that is. every
mile Of roadbed estimated at the same value
regardless of it's cost in different localities
depots terminals, rolling stock, etc. being In
cluded in the mill unit The revised estimates
were furnished the local authorities who pro
coded TO levy the
The net earnings tax. levied only by the State,
was levied in the following manner: Every pub
lie service corporation required TO furnish
to the State a statement of its gross and net
earnings. Net earnings were arrived at by
deducting from gross earnings the cost of
operations repairs and interest on ind sbtedness"
on these net earnings tax of one per cent
was levied on all public service corporations
except telegraph and telephone companies. The
former was required to pay fiat license tax of
$3.50 and per cent on gross income. and
the latter a similar tax of 500 and the same
gross income tax,
The Operation of the State Tax~-Compfete
data as to the valuation of the property of all
public service corporations is not available, nor
Is IT, perhaps. necessary to present in a brief
history Of the tax all of even the avalia BILE
data. / give below few figures, which are
fairly representations of the words Of the new
system put into effect by the law of 1SS1-1SS2.
which will believe. fully illustrate the evident
contrast with the method used under the law
Of 1s69-1S70. 4mended by the statutes Of
1871-lST2
/ For example.