Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-01-22
SPECIAL TAX
PROPOSED IN
Fifty Cents For Each $1,000
of Corporations Capital
Stock Proposed.

Bismarck, N. D., Jan. 22.-"Every
corporation, joint stock company or
association, now or hereafter. organ
lied in the state for profit and having
a capital stock represented by shares
or issuing bonds shall pay annually a
special excise tax with respect to car
rying on or doing business in the
state by such corporation, etc., dur
ing the previous calendar year
of the fair value of its capital stock
or bonds issued; and in estimating
the value Of capital stock, the sur
plus and undivided profits OF such
corporation, joint stock company or
association shall be included. The
amount of such annual tax shall in all
cases be computed on the basis of the
fair average value of the capital
stock and bonds for the preceding
Of. this tax an exemption of $4,000
shall be allowed from the capital
stock Of any such corporation, joint
stock company or association
This opening section OF House Bill
No. AZ, introduced by the taxes and
tax laws committee Tuesday, reveals
one of the methods by which the
present state administration hopes to
close the gap between and
expenditures, which will be some
thing owe $4,000 900 for the ensuing
biennium. 4-.
Further Definitions.
Corporations organized under the
laws of other states or foreign coun-
tries but doing business in North Da-
kota shall under this bill pay an IN
n1QJ aYci9o fov nf IN oonfo nor fhan-
sand on capital actually invested in
the transaction Of business in the
state; "provided. that in the case of a
corporation engaged in business part
ly within and partly without the
state, investment within the state
shall be held to mean that proportion
Of its entire stock and bond issues
which its business within the state
bears to- it's total business within and
without the state, and where such
business within the state is not other
wise more easily and certainly sep
arabic from such entire business with
in and without the state, business
within the state shall be held to mean
such proportion of the entire bust
ness within and without the state as
the property Of such corporation with
in the state bears to its entire prop
erty employed in such business both
oAAu f"ASAAOuS kAAO okdSSs pAOS4A-
ed, that in the case Of a railroad.
telephone, telegraph, car or freight
line, express company or other COM
mon carrier, or a gas. light, power or
heating company, having lines that
enter into, extend out of, or across
the state, property within the state
shall be held to mean that proportion
of the entire property of such cor
poration engaged in such business
uyhich tee roj1oo 90 WITHIN es <h1 o$otA
bears to its entire mileage within and
without the state.
Some Organizations Exempt.
The bill specifically exempts from
this excise the labor, agricultural or
horticultural organizations; mutual
savings banks not having capital
stock represented by shares: fra
ternal; benefit associations operated
under the lodge system; domestic
building and loan associations, CO.
operative banks, cemetery companies
owned and operated exclusively for
the benefit of its members; charitable. |
religious, scientific and educational
associations; business leagues, cham !
civic leagues. recreation clubs. mu-
tual hail. cyclone, crop or fire insur-
ance companies, mutual telephone,
elevator, warehouse, creamery, pack
ing or canning companies; co-opera-
tive selling organizations; the federal
land bank and its farm loan associa-
tons and corporations owned and OPP
Grated by the state.
Evidently anticipating the introduc-
ton Of a bill reducing the state tax
commission to one member, this bill
user throughout the term ..tax COM
missioner" requiring that corpora
lions file with him duplicates OF their |
report to the United States commis-
sioner OF internal revenue. and that
the state tax commissioner on or be-
fore the first day Of August. Of each
year, shall assess this excise tax and
certify the same to the state auditor,
who shall within ten days from that
date make his draft upon such Corr
poration, joint stock company, ETC..
and shall present the same. to the
state treasurer for collection.
The bill carries an emergency
clause. |