The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-12-03

government. If such business is car
ried on in the state by foreign per-
sons or corporatiqHs, without entail
ing the use or ownership within the
state of substantial amounts of prop
erty, some means of taxing such bus
mess in proportion to IT'S earnings
within the state should be devised.
Before proceeding to discussion
of the defects of the present tax sys-
tenn of South Carolina, and of the de-
sirable lines of reform, it will be we'll
to give a summary outline of tax
legislation at present in force in the
state.
Present Laws.
The, present .n4in source of reve-
nue. for the state y the general prop
erty tax. All real and personal prop
'erty situated in the state and all
property owned by residents of the
state, kept or used temporarily out
Of the state, are subject to this tax.
Money, credits, corporate securities,
and taxable as personal property
Property of federal, state or local
bodies, and property used for rell-
,gious and educational purposes re-
ceive the usual exemption from tax
alton. The shares of capital stock OF
any corporation required to list its
capital and property for taxation IN
this state, wearing apparel Of tax
payer and his family, and household
susteuance of taxpayer and his FAM
ily to the value Of $100, are also ex-
empt. The state constitution requires
that call of the taxes upon property,
real and personal, shall be laid upon
the actual value of the property tax
ed. as the same shall be ascertained
by an assessment made for the pur-
pose of laying such tax" (Article 3,
Seetion 29.).. The state constitution
also requires the taxation of all kinds
Of property at a uniform rate. (Arti-
cle.10, Section /, and Article 8, Sec
ton g. and the levy of an annual tax
of three mills on all taxable property
in the state for school purposes.
(Article II, Section g.
Before they are authorized to op-
crate in South Carolina, license taxes
of 500 per year are levied on for
eign insurance conAanies, foreign
land investment associations, foreign
building and loan associations, and
all other foreign corporations doing
like classes of business. In addition
to the license fee, foreign insurance
companies must pay as an additional
+ and graduated fee, one-half of one
per cent. of the gross premium, gross
income, or gross receipts in the state
of such companies. Every domestic
corporation with the exception of
certain public utilities is required to
nav as an annual license fee one-halt
of one mill on each dollar of paid up
capital stock. Every foreign eorpof-
alton operating in the state is It
gquired to pay an annual license fee
of one-haf Of one mill on each dollar
Of the value Of the property Of such
corporation used within the state in
the conduct of the business Of the
corporation.
y Other Minor Sources.
There are. several other minor
sources of state revenue, such as Ii
cense taxes on; hunting and fishing
and licenses for emigarnt agents
hawkers, and peddlers. There are at
present no inheritance or income
taxes. Until as recently as 1918
there were levied in South Caroline
graduated taxes on incomes. III re-
cent years the rates ran from a min
in,um of one per cent. on incomes
over $4,000 and up to $4,000 to q
maximum of three per cent. on IN
comes of $4,000 and over. AL
though this tax has recently been re-
pealed, some attention will be paid to
it later, as it's history throws some
light on the question of state income
taxes.
The taxes listed above include all
the present sources of tax revenue OF
the sttae which are Of any impor'
Etance. The local governments OBJ
Etain their revenue from variety OF
sources, but the main source Of reve'
nue for them as for the state treas
:. &bo ponoro pron orty fay Ir