The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-09-15
TAX BOARD EXPLAINS
NEW TAX LEGISLATION
In Bulletin In Which Questions and Answers Are Given Rea
tive To Segregation, Back Taxes, and Effect of Laws
Many Obscure Points Are Cleared Up.

turns of intangible personal property
has%resulted from the reduction of
the rate on intangible personal prop
erty and from the laws passed for
its discovery?
A. An increase of s63,000,000 in
taxable values was returned in 1915,
although the law was operative only
a part OF that year
Q. What amount Of intangible per-
sonal property, not heretofore as
sessed. was reported for taxation in
1915 for years prior to 1915?
A. An amount of intangible per-
sonal property was assessed repre-
senting more than 100000 in new
revenue.
.. What was the increase In State
revenue from intangible property in
1915 over the revenue therefrom in
1874?
\. The revenue from intangible
property increased from s511.791 in
1914 20 $l,259.546, a gain of more
than t45 per cent.
Q. What disposition is made by
law of the taxes TO be collected from
omitted intan gihle property?
A All up to 100000 is appropri-
ated to public free schools of the
primary and grammar grades.
As to Back Taxes.
@. On what classes of property are
! back taxes' collected?
A. Only on property which has been
omitted from assessment and taxa
ton
G. For how many years are back
taxes collected?
A. The State may go back to 1908,
or twelve years and the localities
may go back to 1912, or three years.
.. What rate is imposed on omit
ted intangibles by the State and what
by the localities?
A. The State imposes the regular
rate during that period of thirty-five
cents on the hundred dollars, and the
localities impose their regular rates
/ during the period. which average
$40 on the hundred dollars
.. How much In back taxes can
be collected on 81. 600 of omitted in
tangible property?
A. To the State twelve years
tax at IS cents on the 800. ,s43
To localities three years tax
at $40 on the slo0... "a
Total ...... ......ss $50
which sum would be equally divided
| between the State and the locality.
| @. How does this demand for back
taxes" compare with the taxes act
ually paid to the State by the owners
| of real estate?
A. 1t is more favorable to the hold
! er of intangible personal property
and this Is capable Of mathematical
demonstration AS follows: $1,000 worth
| of real estate under tho former as
sessment was assessed on the average
at about 80 per cent OF its value and
J nj ct ~ he to al a.
! The average rate State and local, OF
s1.7s would produce in taxes thereon
! s5.25 per annum. The total taxes.
| therefore for the twelve years would
| he sea. Having paid his taxes as
| they accrued. the owne" OF real es-
tate, against the owner of bonds
| who has not paid his taxes has been
| out Of his money for an average of
! about six years and is therefore en-
titled to interest on 500 for six years.
which, at simple interest would be
! So" IS. making the principal and in
terest amount to ss5.6S as against ssa
now demanded of the owner OF bonds
! at the end OF twelve years, 1t will
be further observed that no demand
Is made under this law for taxes on
Intangible personal property back of
! 1908 twelve years.
Where the valuation Of land under
the old assessment was in excess of
| 40 per cent, the law la even more IA
vorable to the holder of intangible
personal property but tho General AS
sembly In Its wisdom drafted the law
so that the demand for back taxes"
would not represent burden greater
! than that already borne by the aver
age taxpayer of the State.
The Joint Committee on Tax Re-
vision. appointed by the Governor and
the General Assembly. In 1914 reported
| to that body that real estate was as
sessed on an average OF SO per cent
/ and tangible personal property At per
cent OF it's value.
| @. What would be the effect II all.
| or large percentage. of Intangible
| personal property should be reported
for taxation?
A. The result would be to enable
the state to lower still further the
rate on intangible personal property.
Q. What advantages have accrued
from segregation?
A. G) 1t has reduced the rate on
intangible property to the great ad-
vantage of widows and orphans whose
estates were in the courts and could
not escape taxation at the old exor-
bitant rate.
ca 1t has encouraged the holders
OF other intangible personal property
to report the Same for taxation.
| (s) 1t has enabled the State to re-
duce the rate On intangible personal
property and real estate from thirty
| Ave to ten cents on the hundred dol
/ lars.
90 Since the rate on tangible
! personal property and real estate is
| only ten cents on the hundred dollars,
the proceeds of which are returned to
the localities for public school pur-
| poses. the effect has been that the
former inequalities have been reduced
70 per cent, or to practically n negli
gible factor
(5) Another advantage is that since
/ ten cents collected on tangible per-
sonal property and real estate Is de-
voted to the public free schools. the
discovery and assessment OF large
volume of intangible personal prop
erty has increased the permanent