The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1915-02-16
MESSAGE FOLLOWS OUT RECON-.
mENoATioN or GOVERNOR IN
FINANCIAL MESSAGE
Would Place one-Hsh Of One Per
Cent on Cooperation Income and
Net State Annually $500 900.
(By w. r. kETSER.)
lSfan Correannndenfl

thAhl<koIONs W. VA. FeD. 10
In keeping with one Of the recon-
mendationB OF Governor Hatneld's
special message on taxation. delivered
to the Legislature Saturday. thre was
introduced today a bill imposing a
special excise tax on corporations
joint stock companies. associations
and Insurance companies for the priv
ilege OF doing business In West Viz
ginia. long the lines OF the Federal
corporation tar. The bill was intro
duced In the House OF Delegates by
Delegate Duty.
The bill proposes a rate OF one-half
OF one per cent on the income OF the
corporations subject To the ttax. This
would bring into the state treasury an
annual revenue OF at least $500. 600.
as was pointed out in the Governors
message. Statistics obtained from the
Federal government show that the net
income from all corporations in West
Virginia for the year ending June
30. 1914. was in round numbers
5000 900.
The proposed income tax on cor
porations was most emphatically rec
commended by Governor Hatfield in his
recommendation, being placed before
the proposed tax on the privilege OF
holding land, either in fee or under
lease. In excess OF five thousand acres.
Assure Equal Assumption.
Referring TO the income tax. the
Governor. In his message. said: This
method would assure an equal as
sumption by all corporations OF our
State of taxes necessary for the main
tenance of the State government IL
n corporation realized no net income.
OF course II would pay no tax. IL
tn mo "a CONFEDERATION
should object TO this method. As an
example. II one is earning $4,000 a
year. he ought TO be willing to con-
tribute $50 of this income to the main
tenance OF his State.
There Is no corporation in Tue
state that could well complain OF this
tax. for the reason that corporations
have paid practically no taxes for the
maintenance OF the state in the past.
This method OF taxation should reach
a class of industry owners who have
heretofore escaped taxation. | have
I'm mind owners of lands who have
heretofore compelled the lessee to pay
all the taxes while they go free fSom
taxation and receive their royalty
without any taxes being paid by them
so far as our state is concerned"
Because OF its Importance. the pro-
in their entirety as follows:
Special Excise Tax.
The first section provides that every
corporation, Joint stock company or
association organized for profit and
having a capital stock represented by
shares. and every insurance company
now or hereafter organized under the
laws of this State. or under the laws
of any other government. and engaged
I'm any business whatsoever in the
State OF West Virginia. shall pay an
annual special excise tax for the privi-
lege of carrying on or doing business
In the State OF West Virginia equiva-
lent to one-half OF one per centum
upon the entire net income OF such
company over and above $500 re-
ceived by II from all sources during
the year, exclusive OF amounts re-
ceived by Il upon stocks of other cor
porations. joint stock companies or as
sociations or insurance companies.
subject to the tax hereby imposed; or
II organized under the laws of any
government other than the State OF
West Virginia, upon the amount OF
net income over and above $4,000 re-
ceived by II from business transacted
and capital invested within the State
OF West Virginia during such year,
exclusive OF amounts so received by
u as dividends upon stock OF other
corporations. joint stock companies
or associations or insurance compa-
MES. subject TO the tax hereby i'm
posed: provided. however. that moth
Ing I'm this section contained shall ap-
ply TO labor, agricultural or horticul.
tural associations Incorporated or un.
Incorporated, or 10 fraternal benefiCia-
ry societies operating under the lodge
system. and providing for the pay.
mcnt OF life. sick. accident or other
benefits to the members of such socie-
ties. orders or associations and de
pcndents OF such members nor TO do
nestle building and loan associations
organized and incorporated exclusive
~ for the mutual benefit OF their mem
bers. nor TO any corporation or asso-
citation organized and operated exclu.
sively for religious. charitable or ed
ucatiOnal purposes. no part Of the net
income Of which inurcs to the benefit
OF any private stakeholder or indi.
vidual
To Make Return.
The second section provides that
sll corporations subject 10 the tax