The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-05-14
The First Step.

tIs,afely, summarized in column artl-
clN for the Tax Corner.
Tie. report as whole is an at
tempt to develop a more or less loglcal
argument in support Of the Commit
ices main conclusion-that the first
essential TO sound tax reform in South
Carolina is the abolition OF the gen
eraI property tax system prescribed
br the constitution. The law OF our
Bfpsent system is the rigid constltu-
fional requirement. that all properly
hf aSsry. character shall be assessed
s. sea,,al yaiue and taxed at ami
formaand equal rate The facts are
universal nnderyaluation. consequent
al s6nality Of burden as between lna1-
diSIttals and taxing districts, exofnI-
fantH high tax rates, CONSEQUENT
eacape from taxation of large Pre-
bortsoh of taxable property, and N
SaSauate revenues. I'VE are assessing
.8hd collecting taxes outside the law
Sperafing the most important depart
4sisnt OF government as an outlaw
bEsiness.
J. yzssat IS the remedy? Is it TO pc
efxnra IN the much yaunted prescrlp-
55ssoiiss:--s drastic reduction OF appropria-
xss,esssss,.es .No-for reasons which ate
Nfseestea in our report ana WHICH
KaFg.heen trenchantly stated oy you iii
the Iax Corner Does the remeos ne
Shesbetter. administration which you
a1sSsxes4when you say, I'VE .need
snssss<ep, unnorm valuation of properly
- s<ss.;;ifb carolina No-for reasons
ahfah,eo tosthe heart Of the prooien'
,dsSs,i vr6ich<we have tried to Set ior.ii
sfs,tsS,,iTsns our: report: Higher raiuaeloh
sSssSss Latfer administration g all along
ssXxtne.sin,ply mean u nearer ip-
afoaeh.in practice to>wnae oa' ee''s
fAisonas and statutory la" NO"
s,ISslses-the assessmen OF all propei y
SfssAiszsaStuaI or, true value for taS'' ,oii
a.: as,ssfiforuf rate. If that is the sou,
~. ~. could and should fo''ow NO, 1li
,sssai;Sa.s ss example and .provloe NY
ss-ssfatinn the special machinery re-
s.,;,sa 70 put an taxable property oii
sss.os Shnnks at 100 cents on the oo...'.
...-.;;tsy.in % months time. II IS not .ie
jnI,,s;on 5. ., for the reason, that altel
nntting ali property on the Eoi.s ms, a. 100 ve
sents on the dollar we wouio s.ll' ,hon
$50 valorem tax rate hisnei
tho property now escapins 'aNo
Sronsfsting largely OF so-caiieo ~, q
,.;-.,ronerty) can or Will stano. Inv
e.s.s,ar. of intangibles doesn't haNe ~
.sta,,;a tax rate that takes an uio.4e
ssss.,. sssss-.a..ian af the income from NO
.ssss mad securities. He can cohcea,
s-.ea.h mr. invest it otherwise anu
Sssa,uhere. - or shift his securlties'
ssls HE loans. and thereby disrupt 'iie
:eSs,,s+r,as -, of the commonwealth. H.
therefore, the classes or pfoperts nom
aaeaning taxation and when our ~"
nnso,ssitiyeIy requires shall De taAeu a.
$,,a same rate as all other propei's
Ionic. not be put upon the tax ooohs
and Kept there at any rate we cou'o
hnlnse4 for a result Of fun ana u ue
vsina.ion. surely there is something
vvrans with the theory OF our Id"
Aside from the reason OF the eii.'te'
that theory is unsound because
ifnnracticable. 1t is impractlcaole DC
,r1ssa,ise the industrial health and deVei-
aDusent OF a State demand ana iorce
neeeerstion in practical tax admins
txation of the different economic char-
aeteristics of different classes or prop
erty. Witncss the outlaw classlilca-
4ion which now permits the escape OF
at least $500, 0,000, 100000 Of taxable IN
tangible, property in this State.
But the total loss of revenue from
mat class of property is not the only
or the worst evil entailed When
You make fish of one and fowl OF an
other under law which forbids any
distinction, the entire administration
OF the. genera property tax is de-
nnoraHzed and the net result is thel
chaos and burdensonae inequality We
have today. "'he higher uniform val
uation Of property. with no increase
Ia public expenditure, would give
noninaliy lower tax rate. But it would
lower no mans taxes. If expenditures
were increased. whatever the rate of
naM levy, .ahvious the higher valua-
ton would !N prevent an increase of
taxes actually paid by property own
efs I'M exact proportion to the increase
in expenditures. Higher valuation VIII
neither paliiate nor cure the disease.
If no real relief is 20 be had through
better administration, is it to be found
ip providing additional revenue from
other modes of taxation, such as the
income, tax, the business license tax.
the inheritance tax, etc? That in
quirS is pursued and various forms
of taxation examined and discussed
in our report. The commission Isl
reached that the general property tax
requirements and limitations OF thet
constitution would seriously interfere
With the successful administration OF
other available methods of taxation. |
except in the case af the Inheritance
tax. Certainly, handicapped as we areI
hy present constitutional restrictions. |
Ne cznRot Teasona bly, expect to pro-