Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-01-09
STATE TAX BOARD FAvORs
CHANGES IN TAX LAWS
Would Reduce Rate on Certain
Ciassifications of Intan-
gibics.
RELEASE PART or LOCALITIES
Farors Abolition OF Local Boards Of
Review. Saying They Have Failed
III Their Purpose and Proved Ex-
pcnsivc in Operation.

Recommending some radical changes
in the tax laws Of the State and show
ing a great addition TO the taxed prop
erty of the State within the past two
years. tho report OF the state Tax
Board, Will be transmitted TO the Gen
eral Assembly this morning
The state Tax Board has prepared
an amendment to the tax bill. which
vas approved IN 1915 recommending
the classification of the physical CT
fects Of corporations. such as inventory
or stock on hand, ra" materials. ma
chincrE nd tools. al real estate, SO that
the counties in which such effects are
located may derive the benefits Of taxa
ton. By the present act in force all
the tax is collected in the city or town
in which the principal office OF the
concern is located. 'Fhe report cites an
instance OF corporation with tan
yards located in nvc different counties,
showing that all the tax derived from
the assets OF the corporation in rues-
;ion 30 10 The benefit Of the town in
which the head Office il located.
RECOMMENDS REDUCTION
OF RATE: on ISTASGIBLES
The TaX Board also recommends that
on Fcbruar? /. 1919, the first. second
third and NTH items of intangible
property, tho same being bonds. notes
and other evidences Of debt other than
bonds OF counties, cities and towns and
oiher political. subdivisions Of the
state. capital OF persons. firms and cor
poEat!ons employed IN trade or bus-
ness not otherwise taxed, Intangible
personal property in the hands OF
hduciaries, and shares OF stock OF cor
porations which pay no franchise tax
in this state or all Of the capital of
jci, -
taxed a 30 cents on the 1870 for state
purposes, with tho right preserved to
the counties and cities OF the state TO
levy an additional tax, not TO exceed
50 cents on the 500, as at present.
This suggestion, if enacted into a Law.
says the report, Will place capital en-
Dloyed in business on an equal footing
"ith bonds. notes. Hduc!ary property
and shares Of stock.
This would reduce the rates on all
the property named from 90 cents on
the sioo. except as TO capital employed
in business which Is reduced from 20
cents /; will reduce the tax from
these sources only $4,000; but the
Tax Board expresses the belief that the
reduction viii meet with such n in
crease &. taxable values as 10 result -
An Increased revenue TO the State. such
as resulted from the last decrease.
BE1TER TO REDUCE TANES
THAN TO SPEND SURPLUS
The revenue for the last fisca! year
was approximately ss.600.ooo. OF which
sIs55.o0O were d!sbursed. The surplus
OF $4,000 will bring the surplus in
the hands OF the State treasurer on
October l. 1915. 10 100000. And the
Tax Board takes the position that IL
will better serve the State to reduce
the rates OF taxation rather than to ex-
pend the revenue which would result
from the present rates by what they
exceed those recommended.
The Tax Board further recommends
as did the Auditor of Public Accounts.
that the tax Of 10 cents on the 800 be
taken OF tangible personal property.
and that such property be subject TO
local taxation only. The class OF prop
crty referred 10 includes live STOCK
vehicles. automobiles, bicycles, books.
pictures, tools and farming implements.
fellcd timber. cord wood. watches,
clocks. musical instruments. house
hold furniture. gold and silverpiatc.
diamonds etc, jcwclry. boats and other
water craft. firearms. scines. toll
bridges. ferries, turn2!kcs. telephone
poles and the like, wires and switch
boards owned ny persons. 'irms and as
sociations not corporations, and many
other articles.
Such property uas valued az sos
1927 in 1917. The revenue expected
TO be derived thcrefrom in 1915 is sioe.-
600, a reduction which, il, IS claimed.
the State can afford 10 make.
ADVISES ABOLITION
OF Local REVIEW BOARDS
The Tax Board recommends the aholi-
ton Of the local boards of review, sat
ing that they have no; accomplished
their object, probably through iS-
norancc of the tax laws and miscon-
ception OF their intended functions.
Figures show that IT has cost the state
more TO maintain these boards than the
resulting revenue amounted to.
Recommendation FOR the purpose o:
pcrfectins tho income tax law is also
made by the Tax Board. No change OF
rate IS advised. but the phrasing Of
the proposed amcndme is made with
purpose or taxing incomes OF firms
and partnerships at their source. in
The best and most convincing proof
of the beneficial results in the use of
Dr. D:l WIl