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


the same rate of tax up each OF THESE
at p fair cash value is unjust and
undemocratic. as we'll as ineffective 81
revenue. Efficiency and 1uStlce IN
ia xation have caused the apahoon-
nenr of such a uniform rate upon all
classes of property; the more demo-
cratic nations have already given up
sIch a rate. Why should not North
Carolina?
Taxation of Moneys. Credits and
Security.
uniform rate on all forms OF
-propertv has been notably a failure
in the case of moneys, credits, and
securities. Such a rate has for the
most part reached only the more
angibIe forms Of proper. and has
failed to bring out the less tangible
Machinery and land. for instance, are
usually put upon the assessors o'oks
at some value. while moneys ETC.,
largely escape assessment at any
%aIuation 1t is only when the less
tangible forms are taxed at a special
ly low rate that they come from their
hiding. The present rate of tax IN a
number of our towns ranges from
1h to 2h per cent. Tn real prop
eFty and h more tangible froms of
personal property are usually as
SeSSed for such a rate at from % TO
60 per cent of their cash value, While
moneys, credits. and securities. if as
sessed at I'll, are generally at cash
value. Such a uniform ate takes
for the government from Ia to IL
Of the income OF the moneys. etc,
that are assessed, while it takes q
much smaller part of the income OF
land and the other tangible forms.
The natural consequence 3 that these
less tangible forms Of property do not
go on the books. The State of Ken
lucky received more revenue for the
year 1912 from it's dogs than it did
from the moneys, bonds. and stocks
of the State" And the Kentucky ex-
fperience is not unusual.
More effective machinery of assess
ment and more drastic laws of as
SeSSment would o something toward
bringing out these intangible forms,
but the experiences of Ohio with very
drastic laws and machinery prove
that something more IS necessary.
Pennsylvania and Maryland have for
success in taxing moneys. credits, and
securities, by means of special clasSi-
hcatlOn of them and a small rate
upon them, while Ohio's success with
thes anne rate upon them as upon
land, etc, has been highly d%iscourag-
lE1S. MINNESOTA HIS IOI ct lew years
had an equally notable success with
special classification and rate as have
Pennsylvania and Maryland. Let me
give the results of the Pennsylvania
plan. For 26 years the amount OF
this kind of intangible property
placed upon the assessors books and
taxed at the special ate Of 40 cents
on the hundred dollars has increased
more rapidly than the real estate
while in many States, where the uni
form rate upon all property rs re-
CURED by the constitution, the amount
of the intangible property upon the
tax books has decreased until it has
! almost reached the zero point. Penn.
Sylvanla now taxes nearly two billion
dollars Of intangible pert ir
l many States the total is only a few
4 thousand.
, Let me also give the Minnesota ex
: perience.
f In 1911 a special tax of 80 cent.
) on the one hundred dollars was leviee
upon moneys and credi other thar
\ mortgages. The Minnesota Tax Com
mission makes this comment:
n Realizing the difficulty of reach
C ing this class of property for pur
poses Of taxation under the prevail
ing system, the Legislatt re. in 1911
: passed a law imposing a fiat rate g
t three mills on the dollar go cents al
e the S1Oo) on such property. 1t wa
felt that a low uniform rate of tan
r ton would result in placing a larg
amount of this class Of property q,
h the tax rolls that had heretofore es
capped taxation. 1t was. eOntende,
h that the average man desired to b
l. honest and that a low rate Woul,
it permit him to make a truthful retur1
e OF property of this character that n
IF might own without the fear Of ]1ayiu
y m OSC OF ITS income cnnfcnatoJ s.
s. taxes.
lie The results of the first wear unde
e, the new law have fully justified thes
IL conclusions. The assessed value q
Re this class of property returned fo
1T ~axation in 1919, under the old Law
to less than $4,000. 0Ot
taxation under the new law excaad
,e S115,ooo GOO, an increase Of nearl
$50 per cent in one wear. In taf