The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-02-22

stock. the rate being higher than In
other states, and because they pay
more than do other tax payers in this
state. They also ask that they be
put on the same basis as other intan-
eibles.
Il admit that the rate is higher
than IN most. II not Ia practically all
OF the states and that on present rates
on other property that the banks are
paying a higher tax, portion OF net
income. than some tax payers. but
they are not paying more than all
tax payers, I am paying from 20 to
30 Per cent OF net income from i'm
proved real estate In the cities Of Nor
folk and Portsm outh. as are many
other owners of real estate. Owners
of mortgages pay aronud 90 per cent
or net income as do holders OF stand
ard stocks and honda Net yield from
mortgages, after paying tax, about
sb per cent United States Steel. per
cent bonds. Ia per cent a. r. Co,
8 per cent bonds about per cent.
Va Ry. I Ia bonds. aI-2 per cent
Whereas. the First National bank. OF
Richmond, said TO he a typical bank.
paid Is per cent only of its net in
come In taxes last year. earned la
per cent on book value; National state
S~&AN NANN SAAA @A&1hAS NATIONAL
earned per cent net on book value:
Norfolk National paid less than 10
per cent OF net income IN taxes and
earned about la per cent on book
value; First National. Portsmouth
earned ! per cent net on book value
Merchants Il Mechanics, Norfolk. paid
around 10 per cent on net income and
earned II per cent on book value
Many OF the banks paid no local tax
and these pay very much less than
IL per cent Of net income
While rate is less than rnost Of
the states. many tax on actual value
and many. If not the majority, OF
states tax bank stock considerably
more than other intangfhies are taxed
The state now has several classes
OF intangielss and as I have attempt
ed TO show. the banks are not paying
more of their net income than are
the holders OF these securities We
should consider the tax paid by banks
IN this state compared with tax paid
on other property and the net income
should be the basis of fixing the rate
The banks do not pay on actual value
nor do they pay on market value SIS
they we're required to DO prior to the
new constitution. The general as
sembly arbitrarily and wrongly de-
nilcU market F34Ae 10 De the capital,
surplus and undivided PROFITS, which
is not the definition of market value
in dictionaries and encyclopedias
The book value OF American Bank
and Trust company is $40. market
value. s2oo; book value OF Bank of
Commerce and Trusts $50, market
value, 1907; book value Planters bank
sass. market s<75; book value Union
bank. sf7o tax value $3.50 market
value, $290; book value First National
bank. sisS. tax value. s142. market,
s2io; book value Merchan ts and Farm
ers, Portsmouth, SITS, market. $500.
estimate the market value OF the
bank stock OF Richmond banks Is. II
per cent more than book value II tho
market value OF all Virginia banks Is
rs per cent more than book value the
state would have taxable values of
some sl4.0eo.0oo or st5,o0o.o00 In ex-
cess of value now assessed on banks,
which at rate OF $3.50 would produce
fully $4,000 in excess of present rev.
enue from bank stocks. assuming that
all pay the maximum, though in some
localities a very low rate is charged.
The banks ask for uniformity and II
Is not fair to the banks or other tax
payers to permit some TO pay so and
7S per cent or lower local rate and
others be forced 70 ray st,f6. both
the tax commission OF 1911 ana OF
1914 advocated o uniform rate"