The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-09-22
MUST PAY TAXES ON
SHORT TERM MONEY
ruary 1 to BE Assessed Like Any
Other Capital.
GARRETT sUsTAINs MOORE.
Moot Point Cleared Up in Matter In
crcasing Taxation Of Firms and In
dividuals Conducting Business On
Borrowed Money.

several weeks ago 10 committee
of the Richmond Chamber of Com
merce that money received from loans
made for "A period of not more than
four months, and which shall be ow-
ing on February /, if used in the con-
duct of business. shall he subject
to taxation as capital was affirmed
yesterday In an opinion given by AS
sistant Attorney General c. B. Gar
nett.
The opinion was asked for by
Auditor Moore some months ago at
the request of the committee on leg
islation of the Richmond Chamber of
posed of Arthur Cannon. Granville
Valentine and o. A. Hawkins. The
opinion of the assistant attorney gem
eral Is as follows:
Text of Opinion.
Honorable c. Lee Moore. Auditor OF
Public Accounts. Richmond.
"Dear Sir:
you have requested this office to
advise you as to the proper construc-
ton Of the word Capital under sec
ton 8 of the Tax Bit. as amended
by the Acts of 1915. page IS, and
specifically as to whether. under the
present state of the law. capital In
cludes money which may have been
invested in business.
Section of the Tax Bill, as
amended by Acts Of 1915. page .. pro-
vides for the taxation of;
All capital OF individuals invested.
used or employed In any trade or
business not otherwise taxed. Moneys
and, credits actively used and en-
ployed In carrying on the trade or
business materials, goods. wares and
merchandise on hand and all solvent
bonds. notes. demands or claims made
or contracted in the course of bust
ness during the preceding year (hut
not including any moneys on hand re-
ceived from loans made for period
OF not more than four months, which
ehail be owing and shall have been
actually contracted for the necessary
conduct of such businessl shall be
held 10 he capital in such trade or
business. and shall not be taxed
otherwise than as such capital. but
real estate shall not be listed as such
capital. bu; shal be listed and taxed
as real estate; provided, however, that
nothing herein shall prevent cities
and towns Of this Commonwealth
from imposing license tax on mer-
chants mercantile firms or corpora
tons. based on their purchases or
otherwise. In pursuance of their res
pecfive characters or general laws OF
.hia State for the government. OF the
cities and towns.
Quotes State Tax Board
at is claimed by some taxpayers
that The exemption of money on hand
receive from loans made for a Pc
Rod Of not more than four months,
which shall be owing and which have
been actually contracted for the nee.
essary conduct of such business. should
be constructed TO exempt not only
money on deposit or in the cash
drawer bat also money which has
been borrowed and invested in the
business although IL may not he lit
orally on hand on February l. In
this connection, II seems proper To
quote an order entered at a meeting
of the State Advisory Board on Tax
alton held on September g. 1915,
copies Of which were sent to the En-.
aminer OF Records and Local Board OF
Revenue fer the city of Lynchburg.
and which reads as follows:
Is The State Advisory Board on
Taxation having heard representatives
OF the manufacturing interests Of the
city of Lynehhurg respecting the tax
alton of capital for 1915, and having
duly considered the question. Is Of
the opinion and advises that there be-
ing no change in the present law pro-
viding for the taxation of capital from
,,,d.ar ~, ~ 1880, ~ ~ ~,
80 49, a,,ar $1,000 -
80. ,, ~ 49, .l,,t,,as -,
,a.ns ,,aaa',or nersas 80 -. $500
,han go ,,a,,hs urn,sh sha,, ha
owing and shall have been actually
-, .n.h h,,a,,s.. 90 ~ c,nraa
Cour, 90 Annsa,s ~ th,s Sta.a hav~
Inc rons.r,aa ,ha forrar law cow.
al Tor IN yaar ,a1s sho,,ta 10 a.
sassad ,r aceordsncs u.i,. ~ nan-
-, ~ tbat conrt g. so, for,h T., ~
M 20, n.',, NJ 81 IN ti'e
So ca, 49,, -,
r,s..,onar atha.s ~ I.;- a.
$500. .h.a. h ~ q
rssb, ~ ,ha .s au~ 70 49,. .an nu
riknt oi the taxpayer TO deouct any
"as ~ ". naa . - .roai ioans
~ aue ~. PeIloa VI nv, more .nan
H'e,,t'is' which efsHtt De owing