The New York herald., 1921-09-15
N. Y. CORPORATION
TAX $44,OOO,OOO
Increases $26,OOO,OOO Since
1917, and 'Painlessly Ex-
tracted,' Says H. NJ. Powell.

Epeciul Despatch to THE New YORK HESALp.
BRETON WOODS. N. H.. Sept. IL
The success OF New York State in rails
ing with a minimum of expense large
sums through taxation. of business COR
poretinns since 1917 until. in the last
year. the amount so collected rose to
more than s44.oOo.OOO was pointed out
by II. NJ. Powell in an address last
night before the National Tax Associa-
ticn's fourteenth annual conference.
being held in the Mount Pleasant Hotel.
Breton Woods, ". II.
"The tax imposed in 1917" said he.
was $18,000,000, in 1918 over $780,
225.000. in 1919 $37,250.000. and during
the last year more than $44,OO0.0OO.
There are more than $4,000 business
corporations that make returns to the
Corporations Tax Bureau of the New
York State Tax Commission. Only
about $4,000 of these corporations pay
tax on net income at the hate of 4 u
per cent. the remainder returning no
income and paying minimum tax. 1t
costs the State less than S150.000, or
about one-quarter of ! per cent, to
collect its corporation income tax of
$44.000,000, plus its general franchise,
taxes. The Corporation Tax Bureau
works so smoothly that it seems to
have found what Gov. Miller refers to
as the painless method of extracting
taxes
".The forms of report in New York are
simple and easily understood. II the
corporation does all its business in the
State it is taxed on all its income as
returned for Federal tax purposes. If
1t does business in and out Of the State
1t pays a proportionate tax based on the
amount of tangible personal property.
plus real property in the State. plus ac-
counts and notes receivable from mer
chandise sold and located in the State,
compared with these items In and out
OF the State. Stocks In other corpora
tions owned by the corporation are also
taken into account. In this segregation
OF assets no schedules or balance sheets
are required unless called for by the
Tax Commission.
I'm taxing non-residents engaged in
business or a profession or employment
In the State the New York personal in
come tax is a tax on business income so
Tar as 1t taxes the nonresident Out
OF the total of $37.1S9,272 collected from
6l8.595 taxpayers assessed for. 1919 a
little more than $2,300,000 was collected
from 36.512 nonresidents. More than
30 per cent of these nonresident tax
payers came from New Jersey, about 3
per cent from Connecticut and less than
! per cent each from Pennsylvania and
Massachusetts. Less than S per cent. OF
the nonresident taxpayers came from
Foreign; countries and from States other
than those mentioned
In New York. l venture the assump-
ton. are. perhaps. 100000 residents of
other States, employed or In business.
Of this number at least half hav.,
incomes of 81 900 or more To 60 -
turns for 1919 indicate that only one o,,t
or live nonresidents made a return for
tnat year. The average tax collected
from nonresidents in business in tn,
state was s62.40 The average tax col
lected from resident taxpayers was only
about $50"
me conference. which will close on
friday, is preparing plan for a model
system OF State and local taxation.