The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-08
PENDING PLAN MEANS
sHR|NKAGE IN REVENUE.
City Auditor Crenshaw AnaIyzes
Figures Of State Tax
Commission.
COSTS CITY 1921 $50 PER YEAR
No Compensation Provided for Money
Lost to Cities Through Rolling
Stock Act or Segregation of Tax
on Money in Bank.
OsTs CITY 1921, $50 PER YEAR


city, Of. Richmond will suffer II the
Legislature should approve the latest
tax, reform form plan proposed by the Tax
Crenshaw,. will be approximately a
quarter OF n million dollars annually
when compared with the revenue that
deprived this year OF the income from
bank deposits.
Although under the present law the
city receives no revenue from rolling
stock and bank deposits other than
the negligible tax on the proportional
the gross loss from this source, S203.s2e'
is recent enough to be included in a
statement Of the deficit which the COM
missions plan threatens.
MUST RESTORE REVENUE
LOST Tx RECENT LAWS
IL Is pointed out that while the com
m sis,a!s was appointed to rearrange the
Is charged with the duty OF eoualizinr
the tax burden and restoring, where
possible revenue losses that have boen
4 specimen statement OF the city.
income under the proposed new scheme
prepared by s; r. Donohoe. OF the State
to the. city for the loss from the tax
on rolling stock and bank deposits
and an additional net loss In annual
TO SIS,4f2.3I.
Mr.. Donohoes figures are based or
the city assessment for 1913 are there
fore not strictly accurate Special Ac.
n msn, ha.o 6ofer has prepared state
l9l4. showing the income from ali
sources under the present system, and
.5e ena income that would accrue from the
same TAX subjects should the commits
s iG. 81 propossd plan become law.
~ OF s2a1.2so TO CITY
shows net loss in revenue amountinp
10 *27.o4s. To this amount he adds
10, TOT the reasons set forth. S155.3I2
hrst time from the tax on rolling stock
ana S4S,360. which the city would col.
ieSt on bank deposits. the tax upor
1slature. Is now segregated to the state
me tnree items give total annual loss
ot S23l.23o to the city OF Richmond a:
the result OF the proposed plan
Stated In its simplest form, the com
missions plan Ia to give to the citier
ana aha iocalities the entire receipts from
system tho State collects IS Cents es anf'
the city OF Richmond $40 on the 500
pensate the State for the loss Of t1 om
from this source, the commission plans
to reduce the tax on intangibles TO 81
from this source, Is cents for the s Cites
and other localities and 20 cents for
state purposes.
CONFUSES IDEA OF
SEGREGATIOS, SAYS CRENsHAW
MY objection to this plans is that
while II ni9tminaliy segresates thetas
regation by giving the State and the
localities a share OF the proceeds from
d ne tax on intangibIes.. said City Au-
as asa . essye T 1hst o ahs
should derive Its income from subjects
that pay taxes to 1t alone. and the
Stat state Shout. should do likewise. This prin-
Of intangibies. as well as tangibles
The plan of admitting the State and
Inc 10 localities ss. to a Joint participation
iangibIes, In my opinion, is not in keep
ing with the segregation idea, and is
confusing.
II cannot escape the feeling that
bank deposits should be exempted
from taxation. as they J. actically are
Under under the the present law. The city col
OF S25 l.63., On the basis OF the old
rate. the city would have collects
this year s4S,s6o from the same source
tion. In my opinion, merely places a
premium on the boarding of money in
the banks. Capital is Withdrawn from
lar rates OF taxation and piled up In
bank vaults. where 1t serves no useful
purpose and pays no return to the
EQUITABLE ASSESSMENTS
ARE MOST IMPORTANT
I'm the application OF the segrega
| ton Idea the commission is on the
right track. But no segregation scheme
that, may be devised will BIO equitable
until assessments are equalized
through the State This, in my opin-
ion, Is the most important thing to be
adjusted. The commission has found
that thirty-two counties in the State
| assess their property lower than &c
| per cent. and that only nine counties
assessed as high MS SO per cent The
average assessment for the cities Is
90 per cent. AS long as these inequali-
ties remain unremedied no permanent
relief may be expected"
The Special Accountants statemen
was yesterday forwarded to the Tax
Commission for its consideration. II
revenues that the city would receive
under the present and proposed sys-
TENS.