Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-28
TAX ON PURCHASES
IS RECOMMENDED
Finance Committee Agrees on
20-Cent Rate for All
Over $4,000.
MEASURE GOES TO ALDERMEN
Designed to Take Place of Tax
on Merchants Capital. De-
clared Illegal
MEASURE GOES TO ALDERMEN

over strong protests that one class
OF business had been singled out to
bear tho burden of meeting a deficit
in tin" city's treasury. the Council
Committee on Finance last night rec
commended for adoption an ordinance
placing license tax upon merchants
purchases instead of a tax upon capi-
tai The Board Of Aldermen has been
called I" meet in special session to-
night TO pass tho measure .,
Scales of various rates were con
sidcr"d by lii" committee. but that
finally agreed upon a. the best suited
10 tho city'S needs specifies q tax of
81 upon each $1,000 Of tho first $1,000
of purchases and % cents on each
Slot in excess Of 200
This scale is not unlike tho state
tax on purchases. which prcscribos 81
each ON the tirs, and second 81 900.
20 cents on each s,oo from $1,000 10
Sl"o"cr. and |" ccuts on each 500 in
excess OF $4,000
HOPES TO MAKE rT
EFFECTINE EOR I0II
Il is tho purpose ot the Finance
Committee 10 have tho ordinance
adopted without delay. so that il may
hc lnahc effcctiv" for tho current year.
the former rate OF $40 for each 500
Of capital employed having been pro-
n"mnccd illcgal by the courts city
Attorney Pollard ruled that 1t is
within Tho power of the Council to pas.
III" ordinance at this time and have
it apply to 1916 taxes in lieu Of tho
tax on capital.
Before taking up tho consideration
NJ
the Finance Committee heard brie: adj
dresses by representatives of the
wholesale merchants and Of the retail
rrocers. W. y. Clarke. Jr.. secretary
af the Retail Merchants Association.
was present. but made no remarks.
The principal address was made by
George Bryan, counsel for the whole
sale dealers. He characterized the
proposed license tax on purchases. II
20 be made effective for this year, to
he a violent legislative wrench. He
said that the way 10 meet a dcfcit i'm
the city's finances was not through
placing tho burden on the few. but on
the many. The way to levy taxes"
he declared. lis to tax everybody who
enjoys the benefits OF taxation Let
every one contribute: do not tax one
class which YOU yourself segregate
Bow to the will of the Supreme Court.
which has pointed out TO YOU the path
which you must tread; levy "A tax OF
80 cents on capital
PROPOSES INCREASE
IN real. ESTATE TAX
Samuel II. Heller. representing the
groccrs. told the committee that he
stood where lie di! last summer, when
- no
capital. with the addition OF | mill on
all real estate and tangible personal
property.
Members or tho committee listened
attcntively to what was said harnro
going into executive session TO consider
the various scales which were, from
time to time. suggested by different
merchants affected. Ii was finally de-
cided that the scale chosen was the
best suited I" all purposes. dividing as
equally as possible the tax upon the
small merchant. whose frequent turn
over OF stock neceSsitates renewals n
dozen or so times a year. as we'll as
upon the big dealers. who probably
restores his stock only once 4 wear
the action of the Finance Commit
tee was not so hasty AS may appear
AT first blush. Last summer the com
mittee reported to the Council for
adoption "a license tax on purchases AT
the time Judge Richardson, of the
iustinGs Court. held that the civ
could not impose n tax in excess of
80 cents OH merchants capital the
same rate which is applied TO manu-
facturerS. AT that time il was pointed
out TO tho committee that the city
had appealed Ia the supreme Court
from this decision. and that il was
ikely that the lower court would be
reversed. such was not the case the
appellate tribunal last week sustaining
Judge Richardson. The whole question
had been thoroughly discussed from all
angles before the committee. and i;
was simply holding the matter i'm abcy
ancc pending the result of the case i'm
The upper court. When this opinion
was handed down the committee was
prepared to take up the matter whcre
II left off The only difference i'm the
ordinance now forwarded for adoption
is that of the rate imposed upon mr.
chases.
COuNCu. TO BE CALLED
LATER IN THE WEEK
II the measure is adopted by the
Board Tonight. il is expected that a
meeting of the Common Council will
he called later in the week TO concur
In this action. City Collector Hulcc
and Commissioner of Revenue Tresnon
should the ordinance be made a law
thiS week. viii have their hands full
III seeing that it's provisions arc com
piled with by merchants for the cur
rent year
Many merchants have already paid
their 1916 taxes of $l.40 on capital
IT the ordinance becomes effective, IT
VIII be necessary to adjust their ac-
counts with the city.
AS the Supreme Courts decision ar
fccts taxes OF 1915. II remains to b.
seen what the city will do in this
instance. The rate of Sl.4O having
been pronounced illegal, 1t is certain
that some merchants will call for a
refund OF the difference between this
sum and - cents. This is question
which will engage the attention Of the
committee when IL is brought to an
issue.