The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-29
STATE INCOME TAX
BILL Is INTRODUCED
Republicans Offer Measure
Calling for a Levy Of 2
Per Cent.
HEARINGS BEGIN APRIL 8
Assessment Against Automo-
biles Also Is to Be
~ Increased.
HEARINGS BEGIN APRIL 8
specini Despafoh TO tn. suN.

lative leaders In spite Of the opposition
Of many up-stats districts and the ex-
pressed disapproval OF tho Republican
State executive committee.
., The bill was introduced to-day by
senator Frederick NJ Davenport, chair
man of the legislative tax investigat-
ing committee, and Assemblyman
Franklin W. Judson. vice-chairman,
and hearings on It will begin April s
10 the measure can be whipped into
final shape and passed to permit final
adjournment OF the Legislature by
April Is. two weeks sooner than has
been expected.
That the income tax should be the
s'oore" of our tax system ana that ''in
principle It Is the most just and Impair
tiai of all taxes Is the verdict OF the
aax committee. announced In \ state
fnent by Senator Davenport when the
bill was introduced.
The proposed State incorne tar would
,yfeld $4,000. 900, according to esti-
mates by experts Of the tax committee
and the plan is to give one-hah Of this
amount back to the localities in order
10 help them tighten the tax burdens on
real estate. which the committee report
admits are high.
Would Boost Present Rate.
. Tho second bill Of the tax programme
increases to ~ per cent the pres
snt per cent. tax on manufao-
turing and mercantile corporations and
extends this tax to cover all business
corporations. This tax Is to be levied
on the entire net income of CORPORA
tons. and the bill defines entire net In
come as income before any deductions
have been made for taxes paid or to be
paid to the Government of the United
&c for any losses sustained by the cor
poration In either fiscal or calendar
years, whether deducted by the United
Btates Government or not"
II Is also planned TO pass a bill In
creasing license fees for automobiles on
the basis of rs cents per horse power
plus small percentage OF the list value
of'the car. The tax for Fords would be
o7.e2 instead OF IS and Pierce-Arrow
limousinos would pay sis. This tax
would give an additional 100000 to
che State treasury.
The Legislature may also pass a bill
increasing the present State inheritance
TAX to bring in about $4,000 more
which meets the approval of State Comp
troller Eugene NJ Travis, although the
Tax Committee reports condemn this
scheme. saying: THE committee didn't
think II fair to continue the fragmentary
and partial policy Of striking harder and
harder at certain classes Of property"
sA5 Two Other Bills Framed.
Two other bills have been framed by
the Tax Committee. but their passage
seems to be in doubt. One would permit
localities to assess a business tax and
the other Is for n tax of mills on a
dollar. or one-half of l per cent, tax on
tangible personal property above $4,000.
without permitting deduction for debts
The State income tax bill follows the
general lines Of the Federal income tax.
but tnose who have to make out the tax
returns will not have to invoke the aid
OF constitutional lawyers, for the State
return will be one page affair with a
few easy questions to answer. The State
tax must be paid all at once, while the
FEDERAL Government permits quarterly
payments.
1t 10 proposed to levy tax upon the
net income of every resident OF the state
and upon the income derived from prop
erty owned and from every business
trade, profession or occupation carried
On In this State by nom residents.
"Such tax" says the bill. shall FIRST
be levied, collected and paid In the year
1920 upon and with respect to the tax
able income for the calendar year 1919
or for any taxable year ending during
the year 1919"
E Wording of Measure.
The taxes imposed are in addition 10
oil others imposed by law, except that
money on hand. on deposit or at inter-
est. bonds. notes and shares OF stock in
corporations other than banks and bank
ing associations owned by any individual
or constituting a part OF trust or estate
subject to the income tax imposed by
this article. shall not after July 81, 1919,
be included in the assessment rolls of the
several tax districts. villages, school dis
tricts and special tax districts OF the
State"
To ascertain gain or loss in the sale or
sther disposition OF property the basis
shall be the fair market value of prop
srty January 1, 1919, in the case OF
property acquired before that date, and
for property acquired thereafter the cost
or inventory value.
Net income Is gross income less tho
exemptions allowed in tho biiSps. hich are
80 follows:
The salary OF all Federal officials and
employees taxes paid out; losses In
CURED In investments and in business
$1,000 to a single man and $4,000 to a
married man. with $500 additional ex-
emption for each person who Ia wholly
dependent upon the taxpayer for sup
port.
The deductions are similar 10 those al
lowed In the Federal rlon'nc tax act, ex-
cept that no exemption Is allowed for
t.NA nj ut