Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-09-22
OPINION UPH0LDs. |
AUDITOR MOORE
Attorney General Construes
Capital in New State
Tax Law
rUNKHoUsER's CASE
Supreme Court of Appeals Defines
Capital as Money Loaned at Ones
Risk and Profit

Richmond, Va, September u
The construction given to the wore
capital" as applied in the money ta'
law in the answer of State Auditor
q Lee Moore last May to the request
made of him by a committee repre-
senting the Richmond Chamber OF
(. Commerce is sustained in an oplnior
rendered yesterday by Assistant Az
torney. General C. B. Garnett.
The Auditor after advising the
committee, referred the question Io
the Attorney-General's office, the bet
Ter to satisfy the business men.
In the opinion received yesterday
the Auditor is fully borne out in MS
construction, as the following COM
municatien will show.
September 2l, 1915.
Hon. C. Lee Moore,
Auditor of Public Accounts.
Dear Sir-You have requested this
Office to advise you as to the proper
construction of the word capital
under section 8 of the tax bill. a.
amended by the Acts Of 1915, p. 80
and specifically as to whether, under
the present state of the law, capita.
includes money which may have beer! zee !!
invested in business. Fss$.
Section 8 of the tax bill, as amend;
I'd by Acts of 1915 p. 9S, pfovides
Tor the taxation of;
"!All capital Of individuals invested
used or employed in any trade or busi
hess not otherwise taxed. Moneys ant
credits actively used and employed IL
carving on the trade or business
materials, goods, wares and mercnan'
disc on hand and all solvent bonds
notes, demands or claims made o.
contracted in the course OF business
during the preceding year( but not
including any moneys on hand re-
ceived from loans made for period
of not more than four months, which.
shall be owing and shall have beer
actually contracted for the necessar!
conduct of such business), shall OF
y cid to be capital in such trade Of
business, and shall not be taxed other
wise than as such capital; but rea!
estate shall not be listed as such capi-
tnl, but shall be listed and taxed as
real estate; provided, however, tna'
nothing herein shall prevent cities
and towns of this Commonwealth
from imposing license tax on mel.
chants, mercantile firms or corpora
tions, based on their purchases OF
otherwise, in pursuance OF their re-
spective, charters or general laws o'
this State for the government OF cltleS
and towns"
It is claimed by some taxpayers
that the exemption of money on hah'
received from loans made for per-
ind of not more than four months
which shall be owing and which nave
hsen actually contracted for tht
necessary conduct of such business
shmld be construed to exempt no
only money on deposit or IN the casi
drawer. but also money which ha'
been borrowed and invested IN INT
business, although it may not oe II
,erally on hand on February l. II
this connection, it seems proper u
quote an order entered at a meeting
Of the State Advisory Board on Taxa
ton, held on September 8, 1918, COPE
of which were sent to the Examine
of Records and Local Board OF ne
view for the city of Lynchburg, ant
which reads as follows:
'.The State Advisory Board OF lax
alton having heard representatives
OF the manufacturing Interests o
the city of Lynchburg respecting tn
taxation Of capital for 1915, and hav
ing duly considered the question, ,
of the opinion and advises that ther
being no change in the present LAY
providing for the taxation Of capt.,
from the provisions Of the former La
providing for taxation Of capita
ether than to allow q deduction L