Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-21
WEST OUTLINES VIEWS
ON TAX LAW CHANGES
Equitable Treatment
OF Cities.
PRESENT SYSTEM IS UNJUST
While Supporting Principle OF Seq
regation, He Opposes Increase III
License Tax on Merchants, Who
Arc Already Bearing Their share

Changes in the State tax laws to
meet the deficiency IL the revenues OF
cities caused by the operation OF IN"
states partial segregation system are
suggested hv state Senator J.. r.. West.
OF Suffolk, in an opcn letter 10 oscar l.
Shewmake. counsel and executive as
sistant OF the state Tax Board.
Senator West writes as follows:
Dear Sir.-I hes 70 reply as briefly
as practicable 10 YOU kind letter Of
September s. lsl7. in which You ask
for any suggestions | 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 ! had the honor 10
support as against the centralized plan.
have not been fully appreciated by
the people OF the state chiefly on &C
OF many localities. the con-
tinued agitation OF the omitted taN
question. some unfortunate decisions
and sometimes strai-cd constructions
and technical administration.
The outstanding Getsc; IN the Sys-
tenn is that 8: does noi provide SUI
fcient revenue for many cities. towns
power OF the municipality Thai X can
not provide suhicieni revenue 10 meet
Its expenses eNcsp; by l:yy:rs al cN-
ccssive and hu-dsnSorc tax On real
estate and tangible persona! property
on n high assessment. This injustice
is emphasized by the fac; that the 10
calities which have always been most
profitable to the state have suffered
the creates; loss n venue.
RECOMMENDS DJJ STNIENTS
IN STATE TAX LAWS
ITO remedy this serious defect and
to establish a fair. equitable and just
system OF taXaticn which Viii provide
sufficient revenue 20 mcc; the expenses
Of the state and its subdivisions |
recommend the following:
81. Change the law assessing capital
so as TO providr for local taxation
where tho plants are located. This is
in accordance with tho letter and spirit
of tho segregation law. and is made
necessary 10y a recent decision of the
supreme Court Of Appeals.
-. ScErcgatc /" localities all taxes
on shares OF bank stock and TANGIBLE
personal property and u cents Of the
present state tax on all intangible
property now taxed by localities.
80. Repeal the law allowing cXami-
ncrs OF records commissions on omit
ted taxes prior t. 1916 and give tn"
present system Il fair trial by having
taxing officers spend their time in MAX
ing a correct assessment of all taTabic
property ear 10y year.
"a. AS 10 assessment OF taxes on bank;
deposits. make The law clear to taxing
officers that they have no authority l."
demand from banks a list Of 'lcrost-
tors or deposits. Every bill comforting
such power HAS tccn overwhelmingly
defeated by Tho General Assembly.
-. TaX manufacturers on capital.
rather than Largely on what they owe.
-. Allow the same deduction for in
dcbteincss on shares OF stock shat is
allowed m ponds notes. etc.
-. Repeal the discriminatory income
tax on Incorporated mercantile. manu-
featuring and industrial concerns.
which docs not apply to hanks. pub
lie service corporations and Insurance.
companies.
IS. Revise income and direct inhcri-
tancc tax laws SO that combined Fed
er2l and state taxes on these classes
Will not be burdcnsoinc.
80. Permit INC TO indulge the hope
that your board Nill not again recon-
mend the increase of the license TAX On
merchants, which We defeated in he
1916 Senate, as ! believe they are al
ready bearing moro than their share
OF the burdens OF State and local tax
alton.
Thanking YOU in advance for a care
lul consideration of these recomm.n.
datiors. am. with greatest respect.
YOURS very truly.