The Birmingham age-herald., 1913-06-28

| states. Indeed the members of the
| state tax commission of Minnesota have
! furnished your committee with their
scholarly report for 1912, in which they
| trace in detail the history of taxation
of public service corporations in the
United States, and show conclusively
| that no other method of taxing them
| Is so effective or so just.
Nor is the California plan novel
| in providing a tax on the gross earn
ngs of public service corporations in
| lieu of all ad Yalorem taxes to the
state. The separation of the sources of
| state and local taxation has been
adopted in some five other states than
| California and has the Endorsement of
| scientific students of taxation far and
wide through the land.
"It was this that your committee
| recommended for your Endorsement by
a resolution offered at the last meeting
| of the chamber, and it was this resolu-
| ton that was referred back to your
committee to reconsider in connection
with plan of relief to the city of Bir-
mingham urged and supported by at
| least part of the city administration
The city administration urges the in
| dorsement by this chamber of what may
! be called the Virginia plan. By it the
| city of Birmingham would be made as
| distinct from Jefferson county as If 1t
| were Il county III llSelI, except tnat the
county affairs would still be adniins-
tered from the present courthouse in Bir-
| mingham. The property in the city would
contribute no taxes, however, to the sup
port of the county, and would be required
to provide for itself such public institu-
| tions as are now supported from the coun-
, ty treasury. That is, the city would
have to provide new courts. new judges,
new hospitals in place of those now pro-
loI Nv thn IL
from other sources the share of the cost
proportionate to the population or the as
sessed wealth of the city.
This Is the plan in force in Virginia
cities, and 1t was to examine this plan
in detail that your committee was given
another month. And the plan has some
good points in its favor. Its value to us
would be to relieve the city of county tax
alton just as one great value of the Cali
fornia plan would be to relieve the city
of state taxation. And as the taxes lev
led upon Birmingham property for county
purposes and the taxes levied for state
purposes have hitherto been exactly the
same, to cents on 500, the superiority of
one plan over the other can be determined
only by going into careful detail; and this
your committee has attempted to do
First, then let us consider the Virginia
plan.
The Virginia Plan
1.-THE total assessment for taxes of real
and personal property III the city of Bir-
mingham for the year ending September
30, 1912, including raises of assessments
not finally determined, is in round num-
bors $S5,000,C0O. Tho total assessment for
Jefferson county for the same year may
be put at 100000. The city assessment
is therefore about 60 per cent of the whole.
THE population of the city by the 1910
40 h00 the nj
the county was 226,50O, making the pop
ulation of the city likewise about 80 per
cent of the Whole. So that either upon
a basis of poulation or upon a basis of
wealth. the cost of maintaining public in
stitutions to serve both city and county
should be borne under the Virginia plan "
per cent by the city treasury and 40 per
cent by the II easry o. Jefferson county
THE figures furnished by the county
auditor as they appear for the year end
ing September 80, 1872 show that charity
and hospitals, the courts, prisons, bond
interest, and other subjects the cost IF
which would be shared by city and county
amounted to $3.50, ,424, 60 per cent of which
is Sl73,6o4 70 this add S1123l1, expenses
Of the big sanitary sewer, the inferior
courts and other items which should fall
rpon Greater Birmingham alone And
then add $4,000 received by the city from
the road fund, and $9665O about the
amount received by the city from tae
county schiol tax-about 30 per cent of the
whole county school tax-and we have
S40O,654 as >he minimum additional amour.
Which the city would have to pro vide
annually under the administration plan
which now comes from the county treas
ury not tv count any new court buildings
or new offices, and not counting the cost
of assessment and collection If taxes by
the city. AS separate district. however,
the city would have to create its own as
sessment machinery, which would cost
the city, on its entire taxes based upon
what 1t costs the county, $3S, 721. And by
adding this to the above we have $3.50 .375
TO be deducted from the increased income
of the city by making 1t separate tax
ing district
ne saving may be figured as follows:
by separating the city and county,
the city might take the county tax of
60 on $4,000, ,000-$552 500; and the city
would get the 25 per cent of its LIQUOR
licenses now given to the county, $53,-
052, and in addition say so per cent of
all other licenses paid to the county
$43, 209. Therefore the city could in
crease her revenue s64S,761, less the
above $439,376, or about S209 .0OO-not
enough to meet her annual deficit of
$433,0OO Therefore the taxes would
have to be increased and the state
would get its share of the increase
"On the other hand. under the Cali
fornia plan, the assessments of public
service corporations and banks in the
city of Birmingham which would be
Withdrawn from city taxation and
given over to the state, amount in all,
as taken from the books of the coun-
ty tax collector, to $15,000,000, even if
all the property included in these as
sessments Is operative and therefore
exempt from local taxes. Taking this
from the $S5,000000 city assessment,
leaves $70,o00.000 of property subject to
city and county taxation.
But as this $70,oOO,ooo would pay
no state taxes, the city might well get
the amount formerly paid by its own
ers to the state. So, by levying 165
on each 500 of the s70,000,OO0 the city
would get $1.155,O00, instead of the
epr cent, or $350,000, which it will get
now, making a net increase of revenue
of $305,0O0. OF course that saving will
still leave the city with a deficit, even
though it would not be as great a
deficit by 100000 as would remain un-
der the Virginia or administration plan.
But the taxes may then be increased
without the Interference of the state
tax commission, as none of it will go
to the state.
Moreover, the county roads will still
get support from Birmingham and the
city schools will still get support from
the county fund.
"One more point, however, if the CAL
ifornia plan is adopted, the county as
sessment will lose in public service as
sessments 81 100000 in addition to the
Sis, 100000 lost to the city and this
would reduce the county assessment to
$111.oo0,000 instead of $14O,OOO,O00, as it