The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-11-01
Advocates Abolition of Gross
Earnings Tax on Railroads
of the State
Elaborate Reports
From All Railways
There Will Be Necessary to
Make Assessments on AID
Valorem Basis-Abolish the
Land Crabbers' Act

by the Last General Assembly to draft
pans for the revision Of the tax laws
OF Virginia, to be submitted to an
extra session of the Legislature next
January. completed it's six months of
labor yesterday at noon, when in q
body the commission repaired to the
office OF Governor Stuart with its 49,
page report. ~
The report contains an Introductory
explaining the purposes Of the COM
mission. It's method OF procedure and
the difficulties met and overcome: a
summary OF one results and recon-
mendations for the numerous changes
to be made. and explanations and
arguments ON all recommendations
Division On One Point
The committee Is divided as between
the permanent paid commission plan
for imposing taxes and the segregation
plan. Senators Buchanan, Delegate
Weaver and Captain Donohoe favored
q modified segregation plan. while in
favor of the central commission plan
are recorded Senator EcA1ols. Delegate
Montague. Delegate Chalkley, Delegate
Pitts, Senator Hartman, DIR. Page and
Joseph Anderson. The big night Ut
the early part OF the extra. neAeiom viii
be ON this issne, WITH tho pa4A COM
mission plan being defended by the
majority Of the commission and the
segregation plan by tho minority. The
sentiment In tao last Legisiatnre APP
parently was in favor OF the segrega-
ton plan and 1t Il predicted that 1t
will be adopted by the Legislature to
be called in January
The report as submitted to Governor
Stuart yesterday provided for nuIner-
GUS changes in the present tax laws.
some of them exceedingly drastic 1t
recommended the abolition OF the
gross earnings tax on the railroads. tho
use Of the ad valoregn system OF taxa
ton and the inclusion Of the franchise
value in the assessment and valuation.
1t also recommended that there be but
one commissioner OF revenue In each
county. instead OF several as in many
instances. the abolition OF the land
grabber system: the imposition of q
fiat tax OF 81 on all retail merchants
for stock purchases in excess OF
1000; changes in the tax on Are
casualty and health and accident in
surance companies. and many others.
The Railroad Tax.
The bulletin Of the committee on
railroad taxes issued yesterday by
Delegate Chalkley gives the following
recommendations Of the commission:
Abolition OF the gross earnings tax.
The use Of the ad valorem system of
assessment. requiring that the taxing
power shall assess the fair market
value Of each said railway corporation
within this State. including In said as
sessment and valuation the value OF
hs franchises. a. well as the value of
Its physical and non-phystcal proper
ties, and with due regard to any in
crement OF value arising from its ex-
istence as . going concern. To ar
rive at this assessment the taxing
power Is to use not one. but all, Of
the well-known factors now used in
AscertaininS the value Of railway
property. It is to require elaborate
reports from each OF the railway COM
panies. showing all classes Of earn
ings. stocks, bonds. debts. kinds and
values OF property OF every kind. both
real and personal, tangible and In
tangible, both as a whole and In the
Ii to procure like information, il nec-
essary, from other sources
When the valuation Is made by the
Commission and distributed to the
several localities, = report thereon IL
certified to tho Auditor Of Public Ac-
counts. He Ia to ASCERTAIN the sew
eral tax rates and lcvies, and apply
tho same to such assessment. thus
ascertaining the amount OF taxes to
be paid. Each company then pays
the whole amount into the State
Treasury. The Auditor Of Public Ac-
counts retains Is per cent OF the to-
tai for the State. about the proportion
OF the whole amount OF tho present
railway taxes II now receives. and re-
mits the remainder to the city and
county treasurers. to be divided on the
basis Of the several levies. Any rail-
road and any community 10 to have