The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-18
NEW YoRRS STATE INCOME
TAX Law.

year will be called upon to collect APP
proximateiy tto,ooo,ooo from about half
million taxpayers having incomes Of
over $1,000 or $4,000 annually. and in
the following paragraphs the methods
By which this task will be accomplished
are described
The new income tax law imposes q
direct tax upon the annual income Of
every individual, whether received from
labor, industry. Investments. real estate
or any other source. Only incomes Of
less than $1,000 for single persons and
$4,000 for married persons with $500
additional for each dependent, are sx-
empted from the tai.
individuals In the employ of the
United States Government including
soldiers ana sailors, are not taxed. al
though the salaries Of State and mu-
nioipei officials, exempted from the pay
ment Of tho FEDERAL tar, will be taxa
Bile under the new STATE law. Residents
Of another State are taxed in respect
OF incomes earned in this State unless
the laws Of their States impose tax
on such Incomes In which case . credit
Is allowed II reciprocal credits are given
to residents of New York State receiv-
Ing income there.
Non-residents are not allowed the
personal exemption of $1,000 II unmar-
ried or $1,000 II married, with an add
tional $500 for each dependent. which
Is granted to residents.
The State act imposes a graduate
Income tax with no surtax. On the flrst
$1,000 Of taxable income the rate -
per cent. on the next $4,000 Q per cent.
and above $4,000 8 per cent. It Is i'm
posed on income received during tn
calendar year Of 1919. Taxpayers are
required to file returns with the Comp
troller not later than March 15. 1920
and to accompany the return with q re-
mittance Of the amount of the tax.
II the individual or the partnership
Of which he IL a member has established
q fiscal ycar other than the calendar
year the return may be for the fiscal
period. In that case only the income
earned between January 1. 1919. and
the data Of ths close of the fiscal year
viii be taxed In the first instance. There
efter the returns will be for complete
fiscal years Of twelve months each, ex-
cept that fiscal periods may be changed
with the consent Of the State Comp
troiler.
Individuals carrying on business in
partnerships are liable for the tax in
their individual capacity. as Is the case
under the Federal act, but the partner
ship 10 required to file a return The act
IL also applicable to the incomes of es-
tatss and all kinds OF property held in
A. l. a.
responsible for making the return Of In
como for the estate or trust for which
he acts.
Because they are unlike provisions Of
the Federal act, those relating TO with
holding agents are Of great Importance.
The State law purports to impose the tax
on the entire net income OF non-residents
from all property owned and from every
business trade. profession or occupation
carried on within the State by natural
persons not residents thereof"
The term Withholding agent" is de-
fined. Persons standing in that relation
TO non-resdents are required to deduct
and withhold 2 per cent Of all personal
service compensation Of whatever kind
and In whatever form paid or received,
II the amount thereof for a year equals
or exceeds $1,000 and as to all other
income OF non-residents tho Withholding
agent IL required to return to the Comp
troller complete information II tho
amount thereof in a single year equals
or exceeds $1,000.
1t Is expected that the act will Yield
from $4,000, 900 to s45. 100000 annually.
The amount Is not to be devoted exclu-
s!vely TO State purposes. Tho act pro-
vides for an equal distribution between
the State and tho counties. cities and
towns OF the State. The amount remitted
TO municipal corporations Is TO be appor-
toned according to the assessed valua-
ton OF real property. II will not neces-
sarily bear any relation to the amount of
income tax collected in a given munich
pality.
The law applies not only TO indivfd-
uals but in relation to their income from
copartnerships and associations. IN de-
termining what Is a taxable income
gains, profits and income from salaries,
wages Of whatever kind or form, from
professions, vocations. paid businesses,
commerce, sales or dealings in property
are included, as we'll as income from in
terest rent, dividends. securities or the
transa ction Of any business carried on
for gain. and income derived from any
source.
There are, however. certain deductions
allowed. such as life insurance policieS
gifts acquired by bequest, income from
Federal, State and municipal securities,
Industrial insurance. compensation OF
Federal employees. income from reli-
gious, charitable and eleemosynary IN
situations used exclusively for their pur-
poses, Other deductions allowed in COM
putting the net income include all ordi-
nary expenses for carrying on a trade,
losses sustained without insurable COM
pensation. worthless debts, depletion and
depreciation OF property.
Administrative features of special in
terest include one provision requiring
that the utmost secrecy be maintained
by tho State Comptrollers office.
Neglect or refusal to make any return
renders the taxpayer liable to a fine OF
$1,000 or a years imprisonment, or both
Should he decide thereafter to make a
correct return per cent penalty, in
no case less than 81, shall DO added.
False and fraudulent returns with in
tent to evade render the taxpayer llable
to double the ordinary rate OF taxation.
One OF the provisions in the New
York income tax law that should be
emphasized Is that this measure Is a
substitute In part for the tax hereto