The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-16
SMITH SIGNS
STATE INCOME
TAX MEASURE
Similar to .. s. Law-Ap-
plies to Non Residents in
Business in N. Y.
WILL BRING IN S4O,OOO,OOO
Automobile and Corporation
Tax Bills Also Approved
by Governor.
Special Despatch TO The suv.

cpeCut DeSDutch 10 THE Sun.
ALBANY. May 15.-Gov. Smith an
nounced tonight that he had ap-
proved the State income tax bill.
which will raise s40,O0O,OOo, the in
creased corporation tax bill, which is
expected to yield $4,000. 900 more for
the State, and the increased 'automo-
bile tax bill, which probably will bring
100000 additional into the State
treasury. One-half of the returns
from the State income tax will go
back to localities in proportion to
their assessed valuation, SO that the
total additional revenue to the State
treasury from these three bills will be
s32. 100000.
The new tax laws, together with
taxes the Comptroller estimates are
due for the next fiscal year, will be
adequate to care for the expected
State budget Of nearly $50, 0,00o, 900.
Eugene M. Travis. State Comptroller.
who will have the administration of the
income tax and corporation tax laws an
nounced tonight that he believed 60o,-
600 residents of New York State would
have to pay income taxes under the new
law. 1t provides a tax Of / per cent on
incomes up to $4,000. 2 per cent on in
comes up to $4,000 and s per cent. on
larger incomes, with exemptions of
$1,000 for single persons. $4,000 for mar
ried ones and 5000 for each person de-
pendent upon the taxpayer.
VIII Hit Non-Residents.
Federal employees will not pay the
State income tax, but State EMPLOYEES
exempt from the Federal tax must pay
the State tax. Non-residents of the
state who make money in New York
State will be taxed. thus affecting many
New York city business men whose
homes ar" In New Jersey. Massachusetts,
Connecticut or other nearby States
The State income tax must be paid TO
the Comptroller on or before March Is
next. the same date the Federal income
taxes are due Secrecy OF tax returns ia
required. The Comptroller, who has
drafted plans for the income tax bureau
organization, will have ready soon n
series Of practical questions and answers
interpreting the law.
The New York income tax resembles
the Federal law in many respects, Gross
and net incomes mean the same under
Doth laws, and deductions and exemp-
tions are in substantial accord. corpo-
rations are not included, but partner
ships must file a return, although they
are taxed like individuals Unlike the
Federal statute the entire net income of
non-residents earned in this State Is
taxable per cent. Of salaries OF 81 900
or more being withheld by their EN-
Withholding agents" for the
State.
Comptroller Travis believes the new
law increasing the corporation tax from
to 4h per cent. and applying to all
business partnerships other than public
service, insurance and moneyed corpora
tions. will yield $4,000 900 more than the
present law, which brought $4,000 600
last year. and will net SIS. 1000, 900 before
June 80 for the present fiscal year.
Since the enactment OF the hrst cor
poration tax law in 1881, and up 70
two years ago, these business concerns
were virtually exempted from the pay
ment of any tax.
Report Reveals Discrepancy.
An investigation made in 1915 re-
vealed a list of twenty-four companies
having 90.000,0 600 OF taxable person.
atty, but actually assessed for only
S3.300,000 This condition was due 10
the practice of filing certificates of in
corporation in smaller communities, al
though carrying on business in larger
centres.
Formerly mercantile and manufac-
turing corporations could not be as
sessed locally on account Of machinery
and equipment affixed to a building IL
such fixtures did not pass from grantor
to grantee. Now only those movable
fixtures used for trade or manufacture
and not essential for the support OF a
building are exempted. Conforming TO
recent decision. the new law provides
that corporations may no longer deduct,
in calculating net income. taxes paid
o. to be paid to the Government on
either profits or net income
The new automobile tax fixes the rate
at 25 cents a horse power, with an
additional fee OF 40 cents for each slOO
OF the list price OF the car until II is
three years old; 20 cents for each 500
OF list price II It is between three and
Ave years old: and 10 cents on each
500 of list price II 1t is more than five
years old. The law provides that in no
case shall the tax on a four cylinder
car, as old as II may be and still run.
be less than S5 nor shall the tax on a
six cylinder car be less than $40.
Gov, Smith signed also a bill appro-
priating $4,000 for the Secretary of
States expenses in putting tho new
law into operation.
/