New-York tribune., 1919-03-28
State Plans to
Levy 2Pct. ON
n. Y. Incomes
Committee That Sought Way
to Make Up 100000
Deficit Drafts Measure
TO Yield $5O,OOO,OOO
Staff Correspondence

Staff Correspondence
ALBANY, N. Y, March 27.--The
Davenport special Legislative tax COM
mittee, appointed to find new sources
of revenue to make up the states pres
ent deficit of $24,O0O,000, has com,
pleted its investigation and will intro
duce three bills tomorrow embodying
the results of it's labors
The principal measure provides a
state personal income tax, which, it is
estimated, will raise $5O,0OOOOO to
be divided equally between the state
and municipalities. The rate is 2 per
cent and the bill is drawn up along
the line of the Federal income tax
law, with the exception that it makes
very few exemptions. Single men are
to be taxed on their income above
$1,000. and married men above $4,000,
with an exemption of 5000 for every
dependent.
Unlike the Federal law, state and
municipal officials and employees will
be subject to the tax as we'll as the
income from stock corporation divi-
dends, estates and trust funds.
Will Tax Nom Residents
Non residents, who work or do bust
ness in this state, are to be taxed on
the amount of money they earn here,
their employers or firms with which
they are connected being compelled to
report their incomes. Non residents,
however, are not to be taxed on the
income from any property they might
own in this state.
The committee believed that if such
a tax were imposed it would drive in
vestors away from New York State
securities.
The income from all bonds, including
state and municipal bonds to be issued
hereafter, is also to be taxed State
bonds heretofore issued contained the
guarantee that the state would not i'm
pose tax on them.
The tax is to be administered by
the State Tax Commission, but col
lccted by the State Controller. The
time for the filing of the first return
is March 10, 1920, and the tax is to be
on incomes for the year ending De-
cember 81, 1919.
The Tax Commission is given the
power to make its own plans for ad-
ministering the tax 1t is probable
tnat deputies will be named for each
county. To evade the tax or failure
TO flle return is made misdemeanor.
punishable by fine of 81 900 or one
year imprisonment, or both.
person who fails to report on time
but who voluntarily makes the return
within thirty days is allowed to pay
the tax, but is fined per cent of the
amount due. The whole tax is to he
/ paid at once at the time of filing the
return.
Direct Tax in Second Bill
This bill, it is believed, has an cx
ceilent chance of passage, but the mem
pers or the Davenport committee arc
not SO hopeful of the second or their
bills, which provides a tax of u of
per cent on all tangible personal prop
erty above $4,000.
Because of the interest in such a
TAX tne Dill was prepared to permit tho
Legislature to take what action it sees
nt on 1t, but it is not believed that it
can get by the opposition of the farm
ers. They will fight it because all
their farm machinery and livestock
under the provisions of the bill will
be taxed as personal tangible prop
erty. Inc personal tax would be ad-
ministered locally and all the money
collected would go to the localities.
Inc b'il leaves it to the localities to
determine if it shall be enforced
Increases Emerson Rate
The committees third bill raises
from three to four and half per cont
the tax on incomes from manufacturing
and mercantile corporations under the
I Emerson law. The bill also corrects an
ambiguity in the present law, which js
now being threshcd out in the courts
he corporations claim that the taxes
they pay to the Federal government
should be deducted, while the state
holds that the law makes no such pro.
vision. The new bill specifically states
that this deduction is not to be made.
II the corporations should win in their
suit the state would have to refund
! about 36,000,000 collected under the
Emerson law. The Emerson law nettcd
the state about si3,000,oo0 last year,
because of the war plants' greatly IN
creased incomes. The increased rate,
1t is estimated, under normal conditions
xt be- tst