Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-10-27
MERCHANTS ARE
AVERSE TO TAXES
Richmonders Appeal to
Chamber of Commerce
for Instructions
TO RESIST PAYMENT
Say 81. 40 Local Rate VIII Drive
Business Away From Capital City
of State

! Richmond, Oct. 2i-Mefcnahts VI
this city have appealed to the Cham
Der of Commerce for advice as TO the
best method of seeking relief from the
merchants license tax, which many
consider unjust and almost prohroi-
tive.
The legislature committee Of the
chamber met yesterday afternoon
and fixed a date for hearing. inns
hearing will take place this week
or early next week. Tax experts VIII
appear before the committee ana Il
statement will then, it is said, be Is
sued by the chamber to the merchants.
Some of the larger merchants have
decided it is said, to decline to pay
the tax. They will offer to pay the
3O.cent State tax, but will resist pay
ment of the $1.10 local tax. Inen
when the Legislature meets next Jan
aary an effort will be made to have
the merchants license law immedla-
tely repealed and a new schedule
enacted.
II has been suggested by those Ia
miliar with the situation that the city
and State should have the same
classification, though the rates may
be different.
The laSa} tax, on neschants is such
business men say, that business WI!
he driven away from Richmond and
M merchant will be encouraged to
come to Richmond from any other
.itv. AS the rate now stands some OF
the merchants, if they pay the TAX,
will pay as much as $4,000 or more.
Because of the large amounts de-
manded the leading merchants will
sand together, it is said, in resisting
the tax. 1t has been said that the
Chamber of Commerce will stand be-
hind them in their fight.
The local tax on merchants, be-
sides the special license taxes, is lao
on their stock Of goods, 81 40 on their
money in bank and 81 40 on all bills
colectible, the rate being Sl.4o or
each 500.
Merchants are now not only taxed
bv the city, but by the State as well.
the State tax being on their purchases.
Having paid this tax they must then
nav the local tax, which is assessed,
in part, upon the goods purchased
rpon which taxes have already been
paid.
Under the new law the State re-
ceives So on purchases not exceeding
81 900. On purchases over $1,000 and
not exceeding $4,000 the State tax is
$40. On purchases over $4,000 the
State assesses, $40 on the first $4,000
and 20 cents on each 500 in excess
of $4,000 up to 100000. In excess
of 100000 the tax is ten cents on
the Sl00.
If the merchants refuse to pay the
81 40 tax, but tender only their taxes
at the rate of 30. cents on the $500,
and if the Legislature then repeals the
law, the local taxes (at the Sl.4O
rate) may still be due for this one
year. it is pointed out. unless by some
method the General Assembly can
make its act of repeal retroactive.
This was pointed out by City Auditor
CreEshaw.
/ 1t is pointed out that manufactur-
ing concerns pay 65 cents to the
State. the cities being given the op-
ton of levying tax of not exceed
ing 80 cents for local purpose. This
it will be seen. makes difference
between manufacturers and merchants
of 95 cents on the former and 81. Is
on the latter-a matter of 50 cents
on each 500.
Local business men will offer the
80 cents which cities are allowed to
assess. and will then allow interest
to be added. When an attempt is
made to force payment the case will
be thrown into the courts, where it
will have to remain for some time,
unless the hearing is speeded and ad-
justed at the request of the city.