The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-08-12
State TAX FIXED
ACKNOWLEDGEMENTS
Ten Cents Of This is Made
Necessary By. the Vir-
ginia Debt Settlement.

CHARLESTON, W. Va, Aug. "a
The state taxileyy for the year end
Ing June 80, 1920, was nyed yesterday
BY the board OF public works at four
teen cents for. eacn $500, or double last
years rates ten cents being for the
bonded indebtedness caused by tho
Virginia debt, and four cents to cover
The expense of running the state. Last
year the levy was seven cents for the
. current expenses Of the state, the rate
being lowered due to the oil and gas
lax law becoming effective.
The levy adopted will leave sur
plus of approximately 100000, al
though according to the state tax COM
miBsioner's estimate surplus of over
500, 600 is needed to take care of three
contingencies that may arise; a de-
cision unfavorable to the state on the
constitutionality OF the oil and gas tax
which is now being tested; the posi-
bility of state institutions running
over their appropriations due to in
creased costs; a special session OF the
legislature.
Rather than place the levy high
enough 70 meet the first contingency,
the board of public works decided
upon the lowest possible rate-making
It necessary for special session of the
legislature in case the oil and gas tax
Is not collected this year.
Though 1t was said to be impossible
10 determine the exact surplus in the
treasury on July 1, 1919, until COM
plete settlement is secured from all
sheriffs for last years revenues and
until last years appropriations cancel
on August %, the fiscal officers re-
ported an approximate surplus at the
first of this year Of $4,000.
The recommendation to the board
further stated that the estimated re-
venue from the oil and gas tax is
81 .250, 900; from other sources than the
direct levy 1886. 900, and from sew
en- cent direct levy $980000 which,
with the surplus, gives total revenue
OF $4,576,000 for this year.
Against this sum stand appropria-
tons of the last legislature amounting
to s3sS21,44o for the current year,
yeaving an estimated surplus for July
1, 1920, OF S754,500.
Expenditures on account OF interest
and principal to be paid on the Vir-
ginia debt bonds include S236,250 in
terest due July /, 1913; $236,250 inter.
est due July 1, 1920, and the same
amount due July /, 1920, and one
twentieth of the principal $4,000, or
total of S1,3SS,750 for the year. The
estimated income from the ten cent
direct levy will be s1,400,OOO, leaving
an estimated surplus in that fund July
], 1920. of s16,250.
Commenting in their joint statement
on the situation, the state tax COM
missioner and the chief accountant
make the following recommendations
eIt will be seen from the foregoing
statements that ten cent direct levy
is required for the Virginia debt, also
a seven cent general state levy, MAX
ing total of seventeen cents. Owing
10 three contingencies the state should
maintain a fair surplus:
First, the legality of the oil and
gas tax probably will be tested by the
companies concerned. II any situation
should develop, where under this tax
might not be collectable for the cur
rent year then the surplus Of $3.50 900
would be turned into deficit OF $780,
600.
Second, It is probable that some of
our penal and eleemosynary institu-
tons viii not be able to keep within
their appropriations, owing to the
high cost of foods, clothing and other
necessities. This additional require
ment also would reduce the surplus.
Third, owing to present unsettled
conditions generally, an extra session
OF the legislature is at least possible.
This additional expense also would re-
duce the surplus.
Therefore, unless surplus is main
tanned, and should an unfavorable de-
cision prevent the collection of tho
oil and gas tax, the state probably
would finish the present fiscal year
with a deficit of not less than 81 ,5OO,-
600.
In view of the facts herein stated,
this department recommends that your
honorable board fix the 1919 state lev
les at ten cents for the Virginia debt
and seven cents for other state pur-
poses