The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-29
keep MThoOoF TAKING BANKS
MERELY INSTRUCTED
To CARRY OUT LAW As NOW
ON STATUTE BOOKS.
State Tax Commission Explains How
Erroneous Impression Has Been
Created I'm Minds OF Auditors.

to be a total misunderstanding of
the matter OF the taxation OF banks
this year and I'm some quarters the idea
apparently prevails that a new meth
cd has been ordered by the state tax
commission. This Is entirely erron-
eous. for the tax commission Is simply
instructing the county auditors to fol-
low the law which has been I'm exist
ence for many years and to assess the
tax against the shareholders after de-
ducting the real estate. The banks
pay the taxes on the shares OF stock
and the shareholders. this being per-
mitted under the law, us has been the
custom for several years.
For instance. I'm Greenville county
the value OF the banks in 1915 was
s1.9s2.6fs and the assessed value for
taxation was s95s. 400, which Is basis
OF 4s.1 per cent. The value of the
banks for the county last year, 1914,
was s1.e40.215. and the assessed valu-
alton for 1914 was ss69,750. The in
cruase In assessed value In taxation
against banks in Greenville this year
Is sss.7io. and this is accounted for in
two ways: First. s22.22O of this rep
resents actual increase In value, either
In capital stock or surplus, and the
rest. $500. is accounted for by the
placing OF the banks of Greenville on
a basis of 4s.1 per cent for taxation
instead OF only as. as they were I'm
1914. The raise to 4S.1 was made be-
cause Spartanburg and Anderson
banks are assessed on this basis. and
this is the basis which the commission
is using In getting all bank assess
ments. The 4S.1 per cent is the basis
throughout the State. and some banks
which have been assessed at 60 per
cent. or more are reduced to 4S.1, and
some which are way under are raised
In the manner of equalizing bank as
sessments.
In Richland county, where the
banks have never been under so per
cent. basis for taxation, the assessed
value last year for taxation was
H.36f,21o. on n value of $2,S30,765.
In spite OF the fact that the Rich,and
banks were reduced from a basis of
SO per cent. to 4s.1 In uniformity with
the rest OF the State. the value for
taxation this year Is $1.492, ,109, on a
value OF $5.1o2.1o6. all of which is due
to the increase In bank values I'm the
county. Had the amount OF capital
invested In banks and the surplus not
grown the banks OF Richland county
on the returns OF last year would have
actually been reduced s130,516 for tax
alton. but the increase In capital and
surplus accounts for the increase I'm
the taxable property.
One official pointed out that there
was over s1.00O.000 increase In the
amount OF money invested I'm capital
stocks OF banks In 1914 in spite of the
hard' times brought on by the war
and naturally tho taxable property of
the banks has been increased In that
proportion.
The public has an idea In some
quarters that they are being taxed for
their bank stock differently from
what they have always been. but this
is not so. The taxes are assessed
against the shares of stock, but the
bank pays the taxes this year, as they
have been doing for years.
Tho following letter sent to the au-
ditor5 by the tax commission will
serve TO cellar up this matter in the
minds OF the public:
Mr.. M. c. Fudge. County Auditor.
Chester. :. C.-Dear Sir: We are IN
receipt OF your letter OF the 22nd in
stant relative to bank returns. II
seems from your letter that no real
estate owned by any of the banks I'm
chester county Is assessed on the tax
duplicates. as required by law. You
ask whether or not the returns for
wardcd you by the tax commission in
clude the real estate. or Is the real
estate owned by tho banks TO be de-
Quoted from this return and the bal
ance to be assessed against the share
holders.
In reply will say that Section 345
OF the Code provides the manner I'm
which taxes shall be assessed and an
portioned among the shareholders.
From this IL will lie seen that IL is
the duty OF the county auditor. upon
receiving the returns provided for by
law. To deduct from the actual total
value of the shares In any such bank
or banking association the appraised
value OF the real estate owned by such
bank AS same stands assessed on the