The sun., 1919-06-19
SMITH YIELDS TO
JERSEY TAX CLAIM
New York Executive Tells
Gov. Runyon Error Should
Be Corrected.
SEEKS ONLY FAIR LAW
Says Legislature Should
Amend Measure to Prevent
Injustice to On-Residents.

Gov. Smith at Albany yesterday made
answer to a message from Gov. Runyon
OF New Jersey in which objection was
made to alleged discriminatory parts OF
the New York State income tax law.
The answer was a step in negotiations
between Albany and Trenton that have
been marked in the latter capital by
threats of retaliatory legislation and or
litigation.
Thousands Of residents of New Jersey
who receive salaries or incomes in New
York city will be assessed under the
new law. Their protests have been d.
rected at alleged discrimination which,
they asserted, will cause them to pay
twice as much on a given sum as resi-
dents of New York State.
Gov. Smith admitted that there is
possibility of injustice toward non-resi-
dents In the law and also an error which
should be corrected. He said:
There seems to me to be but one
possible injustice and one error in The
provisions of the New York income tax
as applied to non-residents. Provision
should be made 1t seems to me, II 1t Is
practically possible, for the $1,000 and
$4,000 exemptions, to apply to non-resi-
dents who receive their whole income in
the State OF New York. provided an
equal exemption Is not granted In the
place of their residence.
by inadvertence. also. the withhold
ing agent in the case OF the nonresident
is required, unless the nonresident pays
his tax directly, to deduct per cent. in
the case of incomes under $4,000,
whereas the tax under another section
of the bill is fixed at / per cent.
For incomes under $4,000. this error
in the bill, as we'll as the possible in
justice above mentioned. can be corrected
and should be corrected, I think, at the
beginning of the next legislative session
in January, two months before the first
tax must be paid so that the nonresident
taxpayer need not suffer any actual in
| Justice.
We have sought in the provisions to
make the act both friendly and recipro-
cal The act provides that non-residents
shall have related to them any tax on
New York income. which may be imposed
by the State OF the taxpayers residence.
| provided that the home State Of the tax
payer treat New Workers. in a substan-
| TALLY similar way. In the meantime we
only desire in the most friendly spirit to
| tax the nonresident for the benefit to
him Of legal. social and physical protec-
tios and for the opportunity offered to
| him to accumulate wealth and do busi-
ness and make earnings in the State Of
New York.
Gov. Runyon asked Gov. Smith to
recommend the repeal OF the alleged dis
criminatory provisions to special SEES
sion of the Legislature. but the extraor-
| binary session had been adjourned be-
| fore the request was received.
From Trenton yesterday word came
that pending the receipt of word from
Gov. Smith explaining his position Gov.
Runyon had asked Attorney General
McGran to prepare an opinion on the
constitutionality of the New York State
| income tax law.
! Gov Rupyon has expressed In
| speeches a determination to do every
thing in his power to relieve citizens of
| New Jersey, who do business in New
York. from the provisions of the New
York law. He has said that IL nego-
| tiations fail a contest will be insti-
| tuted in the courts.
| a number OF chambers OF commerce
and civic organizations in New Jersey
| have attacked the law and expressed
the determination to support Coy. Run
| yon in whatever he may do to upset II
so far as it applies to residents of New
| Jersey.