The farmer and mechanic., 1915-02-23
TAX REFORM IN VIRGINIA
Richmond Journal.

AsieiHioliU Journal.
Governor Stuart and Auditor G. Lee
Moore are greatly pleased with the
net results which have attended eff |
Iorts TO have taxes reduced and to
make step in the direction of max
ing the burden of taxation uniform,
Ihey have been working for the
segregation plan for some time. and
with 1t enacted they see that the
State rate on real estate, Tangible
property-horses, cattle, sheep. fur
niture, books, musical Instruments
and the like-has been cut from
tnlrty-hve cents on the 500 To ten
cents. This sum is for school pur-
poses.
Not that alone. but the rate on in
tangible property-stocks. bonds
notes and other evidences of debt
nave been cut half in two. That class
| OF property has heretofore been taxed
| II Richmond at the rate OF $175 for
state and local purposes Hereafter
! the rate on that for the State is fixed
| at slxty-five cents each on each 800
| while the counties and towns have the
right, If they SO desire, of placing a
| tax Of not exceeding thirty cents for
road purposes. Cities have the right
| to make a levy of the same amount
for general purposes.
The State surrenders $476, 900 TO the
counties, cities, and towns in the
shape of taxes on the physical prop
erty OF steam rOads-tracks, stations,
warehouses, and the like. That all
goes to the localities, except that there
is retained on this property the ten
cents for school purposes. The To-
calities vested with power TO make
assessments can add to their levy for
this year and twenty-five cents which
the State surrendered on that class OF
| property.
L Y,,C{ xuho -
n the States revenues is hard &C
figure out. The State will have to
| provide for all her institutions the
same as at this time-pensions
schools, hospitals, interest salaries
etc. 1t is believed that the treasur.
will have the money under the new
: plan to meet all these.
, | One of the great things in this con
nection will be the settling of tn
Ong-abused system of assessments
/ This matter will be up to the cOun
! les and cities. They will have t
place their own valuations on all thei
, ! property, real and personal, and the
| Will have to accept the result. Th
: | ssence of home rule and local self
| government is involved in the neS
. | system.
: The scheme viii serve TO place take
: ! On classes Of property which hay
| heretofore escaped. For instance, in
: | angibleS have been almost an un
- Known quantity. This is made pIai
u | by the excellent work that has bee
lone by some Of the examiners {
y | records in the rece-.t past, when the
s have unearthed estates which hav
e long been silent when the tax ma
came around. They have poured seN
u eral hundred thousand dollars int
the States treasury and that of TT
counties and cities.
Here is the best way to illuStra
he tax on intangibles: A Woma
living in the country inherits $40, ,0C
in bonds at the death of her hui
band. She will have to pay taxes c
that at the State rate of sixty-f'
cents on each 500. The county ma
if it sees fit, impose tax OF not e.
ceeding thirty cents on the proper
for local purposes. That makes
4otal Of ninety-five cents. Say Il
rate under the old plan Of taxarit
for the county was s1.1o, and that
- a little lower than the average coun
rate The State rate was thlrty-h
cents That would make $1.45. II
rate for each thousand would ha
been a total of S1450. Under q
new law the tax cannot exceed SO.
for each $1,000. That may be
arranged as not to exceed So, al
unless the county levies the tax
thirty cents the tax will be only six
cents on each s10O, or Sc on ca
$1,000.