Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-10-28

STATEMENT IS ISSUED
New State Law Alleged to he More
Favorable to Merchants Than Law
Previously in Force

, Richmond, Oct. 2S-City tax au-
( thorities yesterday pronounced pre-
posterous the reported fear OF R'ch-
mond merchants hat the new tax sys-
tenn will mean rhe collection from
them in taxes this year, about $3OO,Ooo
more than should he assessed against
them under an equitable interpreta-
ton Of the new tax laws.
Merchants will pay no more taxes
proportionatcly to the city and State
combined this year than they did last
year." said City Auditor Crenshaw.
while there has been reclassiiica-
tion Of the tax subjects, the net effect
of the change will be to leave the ag-
gregate State and city merchants
tax Just where it was before the
new system was adopted.
The merchants of this city have
absolutely nothing to complain OF Us
far as the taxes assessed against
them are concerned said Commits
sioner Of the Revenue Henry +.
Trcsnon. The 25-ccnt increase III
the personal property rate paid by
them to the city this year IS offset
exactly by the 25-cent reduction in
the rate charged on the same class of
property by the State.
i'Ihcre is absolutely nothing to
justify the assertion that Oca! mer-
chants will be called upon to pay some
thing ike S30O.OO0 too much because
OF the application Of the city's Sl.40
tax on capita! employed in business
to socalled iHtang toled reported to
he held by merchants in the estimated
sum of $2S.000,000.
IF the merchants Of the city mold
$2S 100000 worth Of intangibes they
have never before reported them, and,
as far as know, have rot yet re
ported them. If they actually own
this; enormous amount of lntangl-
blcs they have evaded taxation on
them in the past and should pay the
tax required by law, which is 80 cents
on the 500, and not 81 40.
Before the enactment of the new
tax laws merchants paid State tax
Of 80 cents per 500 on tanblble per-
sonal property other than capital en-
ploved in business, and a city tax OF
81 40 per 500 on personal property
and business capital. In addition 10
these taxes, they paid State tax OF
s. per 81 900 on the first $4,000 OF
purchases, $3 per $1,000 on the next
SIS. 900. and 81 per $1,000 on all pur-
chases IN excess of $4,000. On pur-
rhases agreegating 100000, there
fore. a merchant paid a State tax of
$205.
Under the system now in force
merchants pay State tax Of 10 cents
on the 500, on tangible personal
property other than capita! employed
in business. city tax of 81 40 per
500 on capital employed in business
and city tax of 81 60 on the SloO on
personal property other than buSl-
ness capital.
The state, in 1914, imposed 90
cent tax on tangible personal pro-
pcrtv where it imposes only l0-cent
tax now. Ofsetting this decrease Is
the 25-cent increase in the clty's rate
on personal property, which was
81 40 in 1914 and is $l.G5 this year
! The State tax on purchases as faf
! as the small merchant is concerned,
! mas been reduced The new rate, IS
; ner 81 900 So on the first $4,000 and
! 50 pcr $1,000 on the next S9S,O0O.
. Under last years law, $4,000 of this
amount would have been subject to
! 81 tax. The total State tax on pur-
chases amounting to 100000 is this
wear S2O6--an increase of 50 over the
total tax on 100000 last year.