Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-09
RECOMMENDS TIGHTENING
UP OF NEW TAX LAWS
State Released to Localities Under
Segregation Total of
S1,675,OOO.
INTANGBLEs NET s72s,4s7
Balance Must BE Made Up by Amend
ments to Existing Tax Laws.
State Revenue Now S0,65S ,SS0.36,
Auditor Moore Reports.

Changes In the partial segregation
system OF taxation now In force so MS
to produce AN increase in the annual
revenues OF the state amounting TO
approximately sl,OOo.0Oo are recon-
mcnded by the state Advisory Board
on Taxation in its report TO the SEN
ate and House Finance Committees,
made public yesterday.
The board points out that under the
new system the state released TO the
localities in taxes on real estate and
tangible. personal property revenues
amounting to sl,6T5,0o0. To Offset this
loss. the increase in the state rcvc-
nue from taxes or intangible personal
property Is s72SiS7. a net loss OF reve-
nuo to the state of S"i6,3la
In order 20 meet the deficit that
must take place in the fiscal year be-
ginning March II. 1"iT. IT additional
revenue Is not provided for the state.
the board recommends the enactment
of amended tax laws. which will in
crease the income OF the Common
wealth Approximately s"71oeo.
TAKES u N DETAIL
SOURCES or NEW REVENUE
The boards report takes up in de
tail the several sources from which
this increase is TO ne derived. under
taking TO show that the amendments
cral purpose of the segregation plan
to bring about more uniform and
thorough assessments throughout the
Commonwealth, with tho view OF re-
ducing taxes.
If the boards suggestions are fol-
lowed by the General Assembly. the
SAT-. 1000 aggregate inCrcalc will be
obtained from these sources: MGR
chants license tax. S250.oo": shares of
bank stock. $4,000; capital in bust
ness, slOO, goo: franchise tax. $4,000:
intanEiblcs yet TO be discovered and
subjected to taxation, inCludin" real
estate notes. 100000: income. $4,000;
water. heat light and power com
panics. $4,000: normal increase in
revenue. including franchise lax on
public service corporations. $25o.ooo.
The report was submitted 10 the
Joint committees Of the House and
Senate at their sitting Thursday night.
No action has rs yet been taken by
either committee towards the framing
OF bills to put the suggested changes
into effect.
AUDITOR MOORE: GIVES
DETAILED ESTIMATES
An addendum to til" boards report
prepared by state auditor c. Lee
Moore estimates that tho states rcNc-
nues for the appropriation year end
ing February IS, 1917. based on the
present tax laws, viii be $6.G3N. SNo.Sh.
The estimated surplus on March !.
! DIG. will be s3Sc $685., making Il to-
tai OF s7,o4l.5i39s that will b" avail
n bic for the expenditures Of tho ap-
year ending February IS.
1917.
The Auditor estimates the disbura"-
Incnts OF this year. based on the pres
ont appropriations, ~ sUll$.oSi.@l.
This does not include any amount for
improvements at any hospital or IN
stitution. Accordingly. he estimates
there will be Il deficit for the appro-
pria ton year ending February rs, 1915,
of S71.5iI33.
1T Will be seen from the above"
concludes the auditor that III" sur
plus and estimated receipts ar" not SWi-
.icicnt. by s7l.537.3@. to pay tho cs
innate OF disbursements, which c.t-
mate is based or present aDrropri2
lions including no amount for improve
.ncntS The state has. however, in pro-
cess OF collection. taxes assessed FOR
years prior 10 1913 amounting 10
S6A!,Tli5i, and am unable IL stat.
at this Vine what per cent OF tscs,
assessments Will he collected. Their.
will he litigation with respect 10 some
OF !hesc assessments and il woulG hard
~ be safe, in my opinion. TO calculate
on collecting, during the first appro-
pr;ation year. more than 100000 OF
ing the dehCit OF $7l.53I.83. there re-
mains $32S,d62.Gi from which the Cen
cral Assembly can make appropria-
tons not included in the estimate OF
disbursements OF course, the General
Assembly can appropriate a larger sum
than this difference. tof S3@N i62.GT
should provision. b- made in the laws
producing larger revenue
INCOME or STATE. UNDER
EXISTING LAWS Il SG.G5S, sS0.:sG
The foregoing total. S5.i0O.000 IL
seems must be provided for. and i'm
my opinion. IL would not be safe for
the committee 10 make appropriations
beyond this amount whether the suns;
be in the general appropriate act or
in other acts. which Will exceed $3OC,-
coo.
According to my estimate, The pres
ent annua! income Of The State under
existing tax laws is $t,G5.. SS0aG and
10 max" appropriations which viii re
Huire an annual disbursement, OF VI
100000 Will neCcSs!tatc changes in
the present laws which viii provide
after this year, additional revenue. in
the sum OF NOT less $l,Uuc.OUO thereby
ahordine the STATE, under the most
favorable circumstances. a very small
surplus. condition which ] CONSIDER
FAR more beneficial TO the St:,c H..