The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-12-10
Recomn1eds Changes
In System, of Taxes

their true market value as other
property not so open to Inspection.
Real estate, lands and buildings, are
most subject normally to full assess
ment.
In South Carolina it happens that
because a survey of the state has not
been made since 1925, and no tax
maps are available, great deal of
real property is not on the tax lists
at all, and therefore wholly escapes
taxation. This is a grave defect not
OF the law, but eitl e Of those whose
duty it is to administer it, or OF
those whose duty it is to appropriate
funds for the effective administra-
ton of the law. 1t should not be
necessary to argue at length for the
necessity of an early and comprehen-
sive survey Of the state. The cooper
alton of the United States census de-
partment department Of agricul-
ture can generally be obtained in
making such surveys, and in bear
ing part of the expense. The anl-
tial investment would soon be repaid
in increased tax revenue, in the de-
velopment of greater respect among
the citizens in the ability Of their
state government, and in the advan-
tages derivable from properly con-
Quoted land survey in connection
with transfer of lands, school, water,
and conservation surveys, and for
other purposes.
But aside from this condition of in
complete tax lists, it remains true
especially in the country that real
property is more nearly subject to
proper assessment than other forms
of property. Personal property es-
capes full assessment in much great
|er degree, particularly if it is in
tangible property. The personal
property Of the farmer consists large
" of tangibles, and the amount OF
such property is generally known,
within broad limits, to his neighbors,
including the assessor. The horse Of
the farmer OF his piano does not es-
cape taxation. In the cities and
towns, where neighbos are not so
well acquainted with each others
possessions, the assessment Of tangi-
Ible personal property is generally
based almost completely on the per-
sonaT declarations of the taxpayers,
with. ludicrously small tax returns
as al result, There is considerable
evidence in the reports Of the tax
commission that such conditions are
not unknown in South Carolina.
In the case of intangible personal
property, the failure Of assessment is
everywhere much more marked than
in the case Of tangible property. In
South Carolina, the failure is nearly
complete. To quote the report for
1919 of the tax commission, pages
s and 8:
What Commission Says.
"a very large part of the wealth
of our state is invested in various
forms of intangible property and no
revenue being derived from it, leaves
tangible property to bear the whole
burden. Under> the law, as it now
stands, moneys and credits, or intan-
gible property is required to be as
sessed in proportion to its value, and
taxed as personal and real property.
It is we1l known that this law has
not been enforced in South Carolina
| to any appreciable extent, and that
+ such intangible property entirely es-
capes taxation"
This failure of the property tax to
reach intangibles is not peculiar to
tSouth Carolina, although it is ap-
parentIy more marked here than in
other states. The progress in indus
try and commerce, and the develop
| ment of corporate enterprise, have
resulted in a great increase in the
proportion in whic hwealth of indi.
viduals on the average consists of
such intangibles as stocks, bonds,
mortgages, patent rights, copyrights
money and bills receivable. The fail.
ure of the tax in South Carolina to
reach money and credits is explained
| by the tax commission in the report
| cited above, as due to the fear that
its taxation would drive capital from
the state. This is a justifable fear,
but even if it were absent, and seri.
| Gus attempts were made to collect
Tho +ov tho racI1lts yynI115 move dis.