Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-02-19
NEW TAX BILL
IS INTRODUCED
IN LEGISLATURE
Measure Making LevieS On
Incomes Is Before Lower
House; Object Is to Cure
Defects In Old Law.
Especial Correspondence to The journal.

| Defects In Old Law.
| Especial Correspondence to The Journ1iJ
Santa Fe, Feb. lS.-The income
| tax bill now before the legislature
taxes incomes ranging from $4,000
to beyond 100000.
The smallest income taxable is
$1,000 provided that it is drawn by
ian unmarried person who can not
rightfully claim any of the deduc-
| lions allowed by the bill. He Is al
| lowed $500 exemption for each de-
pendent or married person the
lowest limit is $4,000 and 5000 for
each child under the age of Is
years and every other dependent.
| He need not make return, how
ever, unless his income exceeds
50, 400--that is the married man,
provided he is living with his wife.
The amount of the tax varies,
according to the size of the income,
The bill makes seven classifications
and names the rate for each class.
The rate of taxation follows:
Incomes not exceeding $10,-
900 / per cent.
2--Incomes not exceeding SEQ
900: per cent for the first $10,000
and u per cent for the second.
3--Incomes not exceeding $780,
600; / per cent for the first 10000,
IL per cent for the second, and =
per cent for the third.
4-Incomes not exceeding S4O,-
Ann Nor pant for. fha fret & n
900, Y per cent for the second;
per cent for the third, and "a
per cent for the fourth.
5--Incomes not exceeding $780,
900; l per cent for the first $l0,-
600: / u per cent for the second;
2 per cent for the third; 2la per
cent for the fourth, and per cent
for the fifth.
6-Incomes of more than $780,
900, but not exceeding 100000; /
per cent for the first 100000; ! u
per cent for the second; 2 per cent
for the third; 2 " per cent for the
fourth; 3 per cent for the fifth,
and per cent for the next $780,
600.
Incomes exceeding $100,000;
per cent for the first 10000; l u
per cent for the second; 2 per cent
for the third; 2B per cent for the
fourth; per cent for the fifth; A
per cent for the next $4,000, and
| s per cent for the amount beyond
100000.
The bill is applicable to corpora
| tons, including stock companies
and associations. as well as ind
viduals. The classification already
given applies to the corporation
as well as individuals, and the rate
of taxation is the same for both
corporations and individuals.
The flaw in the former moons
| tax law of emitting corporations
not organized under the states
laws is corrected. Corporations
not organized under the states
laws but doing business in the state
are subject to the tax in propor-
ton to their net income derived
| from business or property in the
state. Nonresident individuals
also are subject under the same
conditions.
| Banks, trust companies. mutual
building and loan associations and
| regligious, charitable and educa-
tional institutions not conducted
for pecuniary profit are excluded.
So are insurance companies that
| pay tax to the state on premiums
collected.
The filing Of returns at the state
treasurers office is required-by
June /, 1920 and by March Is Of
every succeeding year for the prA-
ceding calendar year The bill pro-
vides that the tax shall accompany
the returns.
The penalty for failure to fife
the return or make false state
ments in the return is a fine not
exceeding 81 900 and imprisonment
for not more than year. 1t is also
provided that failure to comply
with the law will subject the per-
son failing to twice the ordinary
rate of taxation.
The revenue from the income
tax is to be used for the mainte-
nance of state educational and
other institutions and if there is a
) surplus 1t is to be distributed
among funds for other state pur-
poses.
The following bills have been in
troduced:
H. B. No. For the payment of
the expenses of the special session.
H. B. No. Authorizing Hi
dalgo county to levy a special tax
transeribing its records.
H. B. No, 3-Authorizing Socorro
county to levy a special tax for con-
struction and maintenance of the
ocean to- Ocean highway.
II. B, No. 4--AuthoriZing Sierra
and Grant counties to levy special
tax for the construction and main
tenance of state road No. As, from
Elephant Butte to the Arizona state
line.
II. B. No. Amending the SOL
der settlement act.
Ell, B. No. Amending the in
come tax law.
H. B. No. 7--Levying tax for
public defense.
H, B, No. S-Making appropria-
ton for national guard purposes.
H, B. No. 9-AuthoriZing coun-
ties and cities to levy special tax for
public health.
II, B, No. 10--Making appropria-
ton for payment of salaries of sool-
der settlement commissioner and
chief clerk.
The national guard bill calls fol-
an appropriation of $4.166.66-
1856 for salary for the assist
ton for payment of salaries of sol
ant adjutant general, $1,000 for sal
airy for filing clerk in the adjutan'
generals office, and $1,000 for con-
tingent expenses for the eighth fis.
cal year. :,
The appropriation for the ninth
fiscal year is $4,000 salary for the
assistant adjutant general; $1,2Ot
] for the filing clerk, and $1,000 fol
/ the contingent expenses Of the ad-
jutant general.