The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-13

/ thS source anu tbdNt Att ihtS WI
reasonable and you will drive money
out of the State" he concluded.
Mr., Hutzler also said that the Real
Estate Exchange wished a lower ratio
/ Atty cents for the life of the mort
gage-hut looked on the proposed bill
providing thirty~1ve annually As a.
| great measure OF relief and hoped 1t
would be enacted. He expressed con-
! hdence that II would increase the rev
enues derived from the tax on mort
cages because IL could not be evaded
and that after 1t had been tried the
Legislature would come back and make
the rate lower
The more reasonable the rate the
better the resuIt---tha greater the rev.
enue." he said, "The present high tax
! is evaded by large percentage of the
holders of negotiable notes. Tax mort
cages at the source and make the rate
reasonable
4 Mr. Montague then took the floor to
explain the tax commissions reasons
/ for the various provisions OF the pro
posed bill. and was Immediately en-
gagged In "a running debate with mem
bers of the Finance Committee, and the
members of the House present.
Chaikiey Expiains.
| Delegate Chankley, Of Wise. also
member Of the Tax Commission, ex-
planned and defended the bill. He
agreed to the desirabiitty of an amend
ment suggested by Mr. Rev, of Aeeo-
mac. requiring that the lender pay the
mortgage tax
To illustrate the vast sums lost
{ through the evasion of the present tax
on such bonds ard notes, Mr. Chalkiey
instaneed the case of the city of Rich.
mond. Richmond, he said. shows UP
well in its assessments OF intangtbies
In comparison with ether localities and
yet taxes were paid on only $4,000 aee
worth Of bonds. while deeds Of trusts
! on record showed the existence Of
si4,0oo.oo0. Well informed real estate
men tell us that the real value of all
is 100000, o0o," he said.
| Tax mortgages mt the source and
get it he declared. and In spite Of the
lower rate you will zee a tremendous
Increase In the flow of revenue there
/ from.
The great question" said Martin
Williams of Giles. SIS that OF asscsa-
inents II this Legislature cannot rro
vide means for getting at thu true
/ value Of tangibles and intanaibles wo
had better shut up shop and SO home"
How would you do itf" asked Dele
gate Pitts. Of Albemarie
| This Legislature was called here to
. find way replied Mr. Williams.
! Answer Merchants Objections.
| The objections of the Retail Mer-
| chants Association TO the proposed
| classification OF merchants as whole
| sale and retail for the purpose OF
taxation and to increased rates on the
larger retail Arms were answered by
Delegates Pitts and Cha,kley, both
members of the special tax commits
/ S{ {t,fg - -.
subject at the early morning session.
| Mr.. Pitts stated that IS per cent
Of the merchants doing business In
| Virginia make purchases to the value
I ef less than s5e, eco and would not he
affected by the increased rate on
I large merchants, you cannot enact
a law that will not cause objections"
| he said. but IL Is better to increase
the burden on per cent than to
/ tatafe 20 per cent. ~
| To the objections that II would be
unfair. IL not impossible. to classify
merchants as Wholesale and retail.
and that some merchants, doing bust
ness as both. would secure an Ad
vantage over the retailer by securing
wholesale license which IL lower.
Mr.. Chalkley pointed to the provisions
of the proposed law. Every person.
| firm. company or corporation who
/
ness OF selling or Offering for sale
goods, wares and merchandise of any
kind to licensed retail merchants shall
! be deemed wholesale merchant, he
read
| Under this classification, he pointed
out. those doing both a wholesale and
retail business would pay the retail
merchants tax, for every other nler-
chant selling to consumers snail be
1 Cd rat aH - ~
The Afternoon Session.
Yesterday afternoon MIR. Cha1kley
| explained and defended the tax COM
missions bill for enforcing the col
| lection of delinquent taxes. In son1e
extreme cases. he said, the proposed
commissioners in Chancery might he
a BILE to accomplish nothing, but that
| would be because there being few de-
linquents, there would be nothing for
the commissioner to do. There
might be harm done in some extreme
cases, though ne did not think SO. but
the law must be drawn In the interest
OF the great mass Extreme cases
make bad law" he quoted.
/ A spirited debate consumed the
balance OF the afternoon session. Dele
gates White. Chalkley and Williams
taking the leading part, while the
members OF the finance COMMITTEES
paid close attention.
The question of the constitutional
lity of the proposed act requiring
banks TO pay the tax on money on
deposit IN said banks resolution
was adopted on motion OF Mr.. Brewer.
requesting the opinion OF the attorney
general. letter to that effect was
directed to be sent to the attorney
general.
Delegate Gregory was quoted yea-
terday as designating taxes not COLI
lected when due as delinquent" This,
Of course, was an error. TAxen arr
not delinquent legally until 70 re-
turned, as Mr.. Gregory POINTED out-a