The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-10-13

Each is for the most part
ally radical for North Carolina CLASH
fcation of taxabies We nave long had
in the form of business license taxes.
Our Legislature has had the cOnstitu-
tional power to make different classes
of these and to levy different rates
upon them; and it has put this power
into practice. Why should our Leg
iSlature not have such d power when
it taxes property? Why should it not
have the right to make different
classes of property with dieHfent rates
as we'll as different classes Of bust
ness with different rates? The right
to separate the sources Of revenue
for the tate and its local units, the
Legislature has possessed only to a
slight degree; it has had the right
to reserve for the use of the State GER
tain privilege taxes. The taxes on
property are now used by all the units
of gOvernment-the State, the county.
the municipality, etc. Shall the Leg
i~slature not have the right to separate
| these sources for the different units
of administration?
Separation.
Will these two proposals make our
| system Of assessment and taxation
more effective and just The right Of
the Legislature to make classes of
taxables and rates will, 1 am con
| WINGED, have much to do toward re-
form in our present system of taxa
ton The separation of the sources
Of e for h State and it's oca
units is, however, in the minds of
many citizens the more interesting Of
the two proposals. They believe that,
if the real estate and personal prop
erty are left to the locality to tax.
they will he assessed with greater
fairness. They hin that the State
treasury can procure its necessary
revenue from taxes on corporations.
inheritances, etc, and thereby leave
all the real and personal property to
the local government. Would sue a
legislative power be of great assist
ance in tax reform in North Carolina?
l am in favor of the separation of the
sources Of reVenue h in
duStrial conditions Of a State make it
practicable, though I cannot think of
it as the most important thing in tax
alton reform. Such a plan has been in
operation in a few Of our States but
it should be held in mind that they
are much more largely industrial
States than North Carolina now is or
probably Will be in the next few years.
Connecticut. New York, New Jer-
sey, and Delaware have at times OBJ
tanned all their State revenue from
certain sources and have left the real
inc personal property to the local
units of government. Pennsylvania
and California have also had in oper-
alton such a plan, at least in a par
tial way. In these States separation
has worked reasonably we'll, though
some people think that it has led te
l extravaganza on the part of the Leg
! isfature. Since it has not levied rates
! upon the property of the majority O
; the voters, only upon corporations
: etc, the tendency has been for The
Legislature to be more e-xtravagant il
I it's expenditures.
e The largst objection is, however, il
: the actual conditions of economic
+ life. Separation may work fairE
we'll in one State. it may not in an
n other with different conditions of in
Z dustry. In New Jersey 90 per cen
Z of the State revenue may at times b
c procured from taxes on corporations
and in California as much as 16 pc
Q cent, without placing a great handl
q cap upon industries. Could Nortl
Carolina obtain as much as as pc
cent of her State revenue from sue,
4, a source? AS 1 understand the con
II ditiOns now prevailing in our State,
II would be unwiSe for the Legislator
/ to establish complete separation G
e State and local evenUe Still l be
rs lieve it would be we'll for the Legs
TX lature to possess the right to provid
for separation, partial OF complete
"a whenever the conditions make
~ DEdcIlcdDlo. L cdEIlOt lI1lflk THAI III
50 Legislature would use such "a rigf
until the conditions make its opera
he ton effective.
- Classification.
10 The greatest gain offered by TT
IL proposed mendmen is, in my juds
re- men, in the classification of taxablt
II and rates. Such a power can at ont
in be put into application. The cond
lions as they now exist in North Car
in lima make it entirely practicable, al
[ think highly desirable. AS l haN
said, we have two great defects
oar present system-the failure to a
,t sess much property. and the II
equality of valuation of that ..hieh
u placed upon the assessors books. TT
% provision by the Legislature of skiflt
ia machinery of assessment would {
: much toward the elimination of the
We defects. The classification of tax
~ bles and rates would also make in
III portanf reform in our present SySte