The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-12-20
SENATOR WEST ON
TAX LAW CHANGES
suggests Segregation to Localities All
Bank Stock Taxes, Tangible Per-
sonaIly and Part of
Intangiblcs.
TAX PLANTS AT LOCATION
Suffolk Legislator Declares One In
justice Is That, Localities From
Which State Drew Most Lost Most
Heavily I'm Income,

The state tax board has been re-
Gently sending out queries to promi-
nent LEGISLATORS of the state asking
for such suggestions as they may de-
sire to make as TO changes in the ex-
isting tax laws.
Senator j. L. West of Suffolk, has
given out for publication the fol-
lowing reply recently made by him
addressed to Hon. Oscar L. Shew-
make, counsel and executive assistant
Uf the state tax board:
II beg TO reply as briefly as prac-
bcable to your kind letter OF Septem-
Der s, 1917. in which you ask for any
suggestions l may desire to make as
to changes In our tax laws and the
reasons therefor. The merits of the
partial system of segregation of taxes,
which I had the honor TO support as
against the centralized plan. have nov
been> fully appreciated by the people
or the state chiefly on account of the
large reduction OF the revenues OF
many localities. the continued agita-
ton of the omitted tax question. some
unfortunate decisions, and sometimes
strained constructions and technical
administration.
The outstanding defect in the sys-
tenn Is that II does not provide suf-
fcient revenue for many cities, towns
and counties, and so limits the taxing
power OF the municipality that 1t can
not provide sufficient revenue TO meet
It's expenses except by levying an ex-
ccssive- and burdensome tax on real
estate and tangible personal property
Oh a high assessment The injustice
i% emphasized by the fact that the To-
calities which have always been most
profitable to the state have suffered
the greatest loss in revenue. To rem
edy this serious defect and to estab-
lish fair. equita BILE and inst system
OF taxation which viii provide sufiici-
ent revenue to meet the expenses Of
the state and its subdivisions racnt4--
mend the following:
/. Change the law assessing ca pi~
tai so as to provide for local taxa tion
where Hhe plants are located This
ls I'm accordance with the letter and
spirit OF the segregation law ~ed ia
made necessary by a recent decision
of the supreme court Of appeals.
=. Segreaate ia localities all taxes
on shares of bank and tangible person
al property and fifteen cents OF tho
present state tax on all intangible
property now taxed by localities
q, Repeal the law allowing ex-
an1iners Of records commissions on
omitted taxes prior to 1916 and give
the present system "a fair trial by
having taxing officers spend their
time In making a correct assessment
OF all taxable year by year.
~ As to assessment To taxes on
bank deposits. make the law clear to
taxing officers that they have no au-
thority m demand from banks list
OF depositers Or deposits Every bill
comforting such power haa been ever
wheimirgiy defeated ny the general
assemble
%. Tax manufacturers On capital
rather than largely on what they owe
IS. Allow the sa me deduction for
indehtn@ss on shares Of stock that Is
allowed on bonds. notes, etc.
81. Repeal the discriminatory in
come tax ON Incorporated mercantile.
manufa curing, and Industrial con-
aerns. which does not apply TO banks
public service corporations and tTsur-
ance companies
q ReFisA- tecoFac nd direct fhZ
@fierItancs TAX Jaws 80 thar coui6in
federal and state taxes on these class
cs will not he hurdensome.
-. Permit me 10 indulge the hope
that your board VIII not again re-
commend the Increase Of the license
tax on merchants. which we defeat
cd In the 1916 senate az | believe
they are already bearing more than
their share OF the burdens OF state
and local taxation.
Thanking you IN advance for a
careful consideration OF these recon-
men dations ] am, with great respect,
Yours very truly.
j Il. VEST