The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-09
STATE TAX tOiRO
suggests CHANGES
Report 20 General Assembly Erabod'
les List of Detrimental Phases In
Present State Taxation Laws.
ASKS REDUCTION INrANGrBIEs
with Reports of Five Circuits Missing
Last Years Record Is Already APP
proxtnnately Doubled--Has Great
LIZ Assisted Attorney General

tax board to the general assembly
which made it's appearance yester-
day shows that the work OF that board
during the year 1916 and 1917 was,
due to the changing tax laws. and
the different interpretations placed
on them, has been ardous In the ex-
IRENE. The large amount of work
embodied in the report, that has been
complished in the last ear will I'M
doubtedly gain recognition from the
general assembly. II Is thought that
this report will be the hrst thing on
the calendar when the legislative bod
les get down to work.
The hoard was instituted by the
general assembly, first as q state ad-
visory board on taxation. but was la
ter amended and given the name state
tax board. 1t was organized with
Hon. c. p Garnet. counsel and exec
uttve assistant. and Morton L Waller
stein as second assistant. Judge Gar
nett was later appointed chairman OF
the state corporation commission and
was succeeded by Mr.. Oscar L. Shew-
make who is now In charge of that
board and whose efforts for several
weeks have been confined to the report
just out.
The board has in the last year pub
lished and distributed ten bulletins or
circulars. These discussed such ques-
tons as the taxation of the capital OF
merchants. the effect OF tax segfega-
ton In Virginia, taxation of intangi-
bles. list OF the corporations in
Virginia with franchise taxes. d.
gest on tax questions OF general ma
ture, and other publications of a sim
liar character.
Believing that 1t was the intent Of
ha III
board should stand impartial In it's
attitude between the state and the
taxpayer. it has placed It's services at
the disposal of the Taxpayers when
ever possible. The result has been
that many adjustments have been
made with both individuals and cor
porafions Of claims of taxes without
delay or expense of litigation. The
attorneys OF the board have conferred
with the taxpayers or their counseis
and following such conferences the
claims Of the state have either been
paid or orders have been agreed upon
or entered by the proper courts
granting such reifafs as the taxpayer
WIS entitled 10. In ono city in the
state over one hundred such orders
were entered. and the taxes arising
from them which went to the state
treasurer. amounted to more than
sso 600.
The attorneys employed by the state
tax board have rendered valuable
service in assisting the various attor-
teys Of the commonwealth In defense
of motions TO correct assessments al
legged to be erroneous and other tax
cases tn the circuit, hastings. and cor
poration courts OF the commonwealth
the state supreme court. and the
United States district courts
These attorneys have appeared In
more than 100 contested tax cases in
The past year and a half, and the
amount saved to the state Ia said TO
be SUFFICIENT 10 pay the appropriations
~ the legislature for the state tax
board for many years TO come. Close
cooperation between the boards at
tcrneys and the attorney general has
been maintained with the result that
large volume OF litigation in which
he commonwealth was interested has
been disposed Of w!th lees effort on the
part OF the attorney-generaI
One OF the most important rugges-
tons outlined in the report is that of
The reduction In rates on intangible
property. This includes bonds. notes
capital deposits. stock. bonds of coun-
les etc, and the reductions suggest
ed are those of bonds notes and ether
evidences of debts, capital OF persons,
firms and corporations not otherwise
taxed, the principal OF personal es-
tate under control of court. court Of
tcer. or fiduciary. and shares Of stock
Of corporations not paying a fran
n sc tax in this state. or all of the
capital which is not taxed in this
state. The assessed value of taxable
real estate. personal property both
tang'bi and intangible last year
showed an increase OF more than
s21s, 600 600 over that Of 1915. The
Increase OF intangihles Ia estimated tn
be around slso.0oo.ooo
The board suggests that the rate
he reduced on the before mentioned
properties 20 read that all OF the cap
ital that Is not otherwise taxed I'm the
state shall be taxed at the rate OF so
cents on the 500. with the right re-
served to the cities and counties To
evy tax not exceeding 80 cents on
me Sfoe Heretofore II has read state
s. cents with the same reservation far
The cities and counties.
A second suggestion Of the board
to the generally assembly Is that effect
ing the state tax on tangible property
be abolished, Although this property
has been segregated and made sub
tttt W s1taa tdAAifuu only, the state
has received the right to collect n ta.x
Of 10 cents on the 500 for educa-
tfonal purposes. and 1t Ia proposed by
the board that this tax be abolished.
These two reductions would amount
to only a little more Than $46s.O0o
with amount according to the re-
port or the auditor OF public accounts
would make very little difference in
the states finances, and the state
could easily afford the reduction.
Another important suggestion is
that regarding the local boards of re-
view. The board after mature re-
FICTION has come 70 the conclusion
that these local boards have not ac-
what they were destined
to do. and therefore ask that they be
abolished.
In REGARD to the assessment OF
capital the board asks that a change
he made I'm the assessment and coll
lection when such capital is the tan
gihie property OF one corporation, but
scattered in different localities. For
instance a CORPORATION may own its
property at a distance from the head
Offices. The tax on all the tangible
property Is collected by that locality
IN which the PRINCIPAL offices are
located and those localities In which
the Manufacturing plants are es-
tahiished do not receive no tax what.