Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-30
ALDERMEN ADOPT TAX ON
MERCHANTS PURCHASES
Scale Is Reduced From 20 to 10
Gents on Amounts in EN-
cess of 5000 900.
WILL PETITION FOR REFUND
Many Firms VIII Want Return of
Tax ON Capital Illegally Paid for
1015-City Stands To Lose 500
600 Per Year

After amending the ordinance To de-
crease slightly the license tax upon
merchants who do a large business. the
Board OF Aldermen last night adopted
the measure as recommended by the
Committee on Finance. and II now goes
to the comnon Council, which meets
on Monday night. for concurrence This
tax. made effective for 1916. is in lieu
Of the tax upon capital, the courts hay
ing held that the "ityS rate of $40
upon each sl0o employed to he illegal.
As the measure now stands il pro-
vidcs for tax Of 81 on each $1,000
Of the first $500 Of purchases. 90
cents on each Sl"o in excess Of $4,000
and below 100000. and 10 cents on
each 500 above $200,coO II Is the
same as the ordinance recommended by
the committee with tho exception that
the tax il reduced from 20 To 10 cents
on All purchases in excess Of s20O.0o0
The original paper specified u tax of
30 cents each 500 above $1,000
SAYS SMALL MERCHANTS
MAKE FALSE RETURNS
Alderman Fuller sought further to
amend the paper by adding a higher
taN on the first aud second 81 900 pur-
chaS.s. He declared that there were
! 600 merchants ia Richmond who took
oath in their returns to the state that
! their annual purchases were not in en-
cess al $1,000. and that there were
! 400 who reported that their purcha Scs
3
! II was Impossible for merchant to
make purchases Of $1,000 II year and
make a living out az the business.
/ Obviously. he told the board. the re-
1 turns mad. We're not correct. There
/ fore. he suggested that tho city should
| start at the beginning in l.vylng taxes.
and mentioned the sum of $50 as /.
! proper amount to place on the first
$1,000 OF purchases. Alderman Work :
man. member Of the Finance Com
mittce, opposed this. and Mr.. Fuller re-
duccd his amendment to a tax of $40
on the initial purchase Of $1,000. His
| motion was lost By vote of : to 4.
| as follows:
For-christian. Powers. Fuller and
Adams.
Melton. Mitchell, raul and Workman
Absent-NelS.n.
The ordinance. amended to cut the
tax upon the larger merchants from
20 to 10 cents on each 500 above $500
900. on motion Of Alderman Grundy
chairman Of the Finance Committee
was then unanimously adopted.
II this measure becomes law tho city
will lose in revenue about $4,000 =
year. the difference between the esti
mated income from the tax on pur.
chases and that which was received
from the Sl.+0 tax ON capital The
Eupreme Court OF Appeals. sustainin.
Court, held that the city could not ia.
p merchants capital AT greater rat'
than 80 cents. Because of this action
tho city was forced to adopt some sub
stitutc method.
Just how much the city is going t.
lose by this court ruling remains TO b.
seer. AS the Drewry- Hughes case
made the test in the opinion recent,
rendered. affected the taxes of 1871!
many merchants will ask refund 70
tho difference between the Sl4e an,
the 3d-ccnt rate. Eleven Of them hav
already entered suits in the IiustinC
Court asking for "A refund on their 1911
taxes
PETITIONS ARE FILED
FOR REFUND or TtI
Those petitioninr tho court and tn
amounts ut which they are assessed
arc as follow:
O. H. Berry & Co.......... $685.
Ch!ld-cv Drug Company. 500
4 a,l- Z. Go