The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-02-09

dents OF THIS state.
As now advised. we would suggest
| that the law taxing capital of incivid-
uais and corporations Except mer-
chants engaged In business in this
State should be changed 50 as TO pro-
vide for the Taxation of net capital
exclusive of real estate otherwise
| taxed) and the rate of taxation should
be ninety-five cents on each 500 for
State purposes unstead OF stxty-ffve
cents on gross capitaD with the prfvi-
lege TO localities to impose q tax not
! exceeding thirty cents on the 800 as
is now authorized on other intangi-
bles.
In doing this the board did not In
tend, and so advised taxing officers.
that taxes for prior years were not to
be later the subject of attention. this
! board expressly stating that the mat
ter of assessments of taxes for prior
years would later have its attention,
and taxing officers would be instruct
ed with respect thereto This board
Is not prepared to says to your honor
able body how far back assessments
should be made where there have been
omissions, but does suggest whatever
rray be the action of your honora bic
body that this board or some other au-
thority be clothed with power which
will insure uniform action throughout
Ns'S Cdtbiis THIS DOdEu ~
of the opinion that In any provision
made for the assessment OF taxes omit
ted for years prior to 1915 1t should be
provided where the taxpayer has made
full disclosure of his taxable property
tangible and intangible. real estate.
money income or purchases as a mer-
chanO and the assessment thereof has
been made in good faith by the tax Of
ficer, although made under misappre-
I
should be final. but in cases in which
there has not been such full disclosure.
and there have been omissions, either
accidental or wilful, provision should
be made for the assessment as the
general assembly may prescribe.
1t Is suggested that taxpayers be al
lowed within "A time TO be specified
in the law to come forward voluntarily
and list with the local board of re-
view for each county and city their
omissions. and each local board of re-
view should forward the list with Its
recommendations to the State Advisory
Board on taxation. stating whether the
values therein listed In their opinion
represent substantially all omissions
within the period of time to be pro-
vided for In the law. and IL In their
opinion the list does not do this to
state their reasons therefor, and the
State Advisory Board or some other
State authority should act upon tho
list so laid before Il and should have
authority either to confirm and make
Anal the list for the years mentioned,
or to require such further exsmina-
tion through such agencies as they
may be authorized to employ as In their
Judgment may seem proper.
AS to such taxpayers who voluntar-
lily list all their omissions with the
local board OF review, the period of
limitation which may be applied should
ton, IL any, which shall be fixed BY
the General Assembly as to those tax
payers who fail 30 to DO.
Franchise Taxes.
1t is suggested that the annual State
franchise tax provided for in section
43 of the tax law be raised 25 per
cent of the specific amounts provided
for In that section. and 1t 10 believed
this will add at least $4,000 to the
revenue OF the State.
Tax On Soft Drinks.
Section 1913 Ia OF the tax law i'm
posing a license tax for the privilege
of selling soft drinks should be amend
ed 50 an to provide a very consider
able increase in the amount OF tax
TO be paid in cities and towns, there
by securing q justihaoly substantial
increase in the revenue OF the State
from that source. AS prohibition will
be In force on and after November /.
1915. the soft drink business will be
largely increased and will become
much more profitable, and for this
reason this suggestion should be en-
acted into law.
Real Estate Notes.
II is believed that large amount
OF Intangible property represented by
notes and bonds secured by deeds OF
trust on zeal, estate escapes taxation
because they are made payable to the
holder or to bearer and are negotia-
BILE. II is, therefore, difficult for the
taxing officials to discover them for
taxation.
It Is suggested that the law should
provide that II the real beneAciaries
live in this State their names and resi-
dences be stated In tie deed or in
written memorandum thereon before
recordation. as well as in the bonds
or notes, and that whenever such Sc
curities are transferred an endorse
ment showing the names and resi-
dences OF the owners should be made
on the margin of the deed book, or
in come permanent record, and that
unless and until this is done the previ-
Gus holders of such bonds or notes
snail ne assessed Win and neI0 re-
sponsible for the tax,
II is also suggested that the holders
of such intangible securities be- given
the option of paying to the clerk OF
the court at the time the deed is re-
corded a gross tax equal to three dol
lars and fifty cents upon each one
hundred dollars thereof, which amount
shall be in lieu of all taxes upon such
security for the period of Ave years,
and that the clerk shall make an
endorsement showing the payment OF
such tax for FIVE years upon the note
or bond Such tax shall be appor-
toned between the State and the To-
cality in which the owner resides In
the proportion OF flve-sevenths to the
State and two-sevenths to such locali-
fy. At the expiration OF such FIVE
years such holder may again pay such
State and local tax at the same rate
for the succeeding five years to the
clerk OF such court in lieu OF all other
taxes upon such security. which shall
be apportioned In the same manner.
and so on indefinitely until the debt
is paid.
1t should be made the duty of the
clerk Of the court TO ascertain the
facts necessary to execute the proposed
statutes before admitting the deed TO
record, and he should refuse to admit
such deed to record until satisfied OF
the facts, and for failure to dis