Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1919-05-05
LOCAL TAXTlON
ONLY FOR LAND
i. suggestion BY Judge Carroll To
Cure Evils of Tax Laws, Made In
Opening His Gubernatofial
Campaign

leading FARMERS c1AQ booIACSo kkAOkA VI
Madison county, who comfortably NIL
ed the county court room, Judge John
D. Carroll, Chief Justice OF the Court
of Appeals, made the opening address
IN his campaign for the democratic
,ou,ination for governor here this at
ternoon.
Jndge Carroll was introduced by
Hon ". B. Smith, who paid high tn
bnte to his ability and splendid quail
;Scations for the Office he is asking of
the people.
Much of the distinguished speak
er's address was devoted to the tax
law. which is now uppermost in the
minds of the people of the state. He
touched upon other public questions,
hut this Important subject received
most of his attention and commanded
the undivided interest of his hearers.
Judge Carroll declared himself in
favor of woman suffrage and nation
and statewide prohibition. !
After explaining the adoption OF
the constitutional amendment by vote
of the people in 1917, Judge Carroll
spoke as follows:
Pursuant to this constitutional a.
rnendment that was adopted as have
said by the people of the State, the
legislature in 1918 met in special
session and enacted the tax laws un-
der which we are now living. These
laws in obedience to the constitution
al amendment classified property; for
example money was put in one class,
notes and bonds and mortgages were
put in another class, live stock was
nut in another class, farm implements
and farm machinery and products In
course of manufacture were put In
another class, and land was put In
vet another class. It was further
provided in accordance with the a
mendment that money ON deposit In
bank should be exempted from local
taxation and pay only 10c. on the
hundred dollars to the State; the
notes, bonds, mortgages and other
like species of property should be ex-
empt from local taxation and pay
a tax of 40c. on the one hundred dol
lars to the State; that land should
paw a tax of 40c. to the State but be
subject to local taxation.
The purpose of putting this low
rate on money and notes, bonds and
other species of intangible property
was to induce the owners of this class
of property to give it in for assess
ment. Little of it had been listed for
assessment under the old laws simp-
" because the tax rate for local and
state purposes combined was so large
that owners of this class of property
did not feel justified in assessing 1t
when in many instances they would
be required to pay a large part OF
their income in the way of taxes. 1t is
easy enough for any one living in a
county, city, or town to figure out
for himself what part of the interest
on a note or bond he would have to
pay as county, city and state taxes II
he listed it at its fair cash value. All
of US know that the local taxes in
many counties, cities, and town are
very high and it was the local and not
the State tax that Influenced the peo-
pie to hide their securities.
Let US see now-what effect the new
law had on money and intangible
property and whether the State has
been the loser or the gamer by the
change. The local communities will, OF
course, lose whatever taxes would be
collected from these sources but i,
did not amount to much except in g
few large, or small prosperous cities
For example, in 1916, the year be
fore the new law went into effect
S11,277,196 in money was listed fol-
taxation in the whole state. In 1911
under the new law the amount OF
money listed for taxation was S179,
143,180, an increase in one year Of
S167,SS5,984 and although the ex
act figures are, not at present obtain
able am reliably advised that IL
1918 more than $217 200, 900 in money
was listed for assessment.
In 1916 under the old law the tota
assessed value in the State of al
bonds, notes, mortgages and othe
species of intangible property wa
S68,650,S $3.50 while in 1917 under tn
new law the assessed value of thi
class of property was $246,3b8, ,379
OF an increase in one year of S171,
697 ,499. And although the, assessmen
1or 1913 is not available l am re
hably informed that the assesses
value of this class of property in 1911
was over $290,000,0O0.
Now this enormous increase in tn
assessed value of money and intangl
pie personal property is due entirel,
TO the reduced rate of taxation. Peo
PIE who have money on deposit o
IN their pocket, or who have notes o
oAO iiOt W1l1lAS W give Up uiA
der the old law for taxes the larg
share that would have, to be taken o
thelr income. Another thing that ev
II fybody knew was that a $4,000 goo
note would be usually assessed j
gwen in at $4,000 while farm wort
$4,000 would be assessed at fror
$1,000 to S2500 and this conditio
OF inequality helped to ease the con
SCIENCE of the note owner. And
want to stop long enough here t
say that every state in the union ha
tIled every method that could be tho
el IN the way of penalties and fol
lectures and drastic oaths to secur
the putting on the assessment 70
money and intangible personal prop
erty but in every instance where th
rate of taxation was high the schem
was total failure. The oath the ia
paler WIS reali1ed To tzIr<a IN I Oh