The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1921-06-09
THE INCONSISTENCIES
AND SHORTCOMINGS OF
THE TAX LAWS OF s. c.

partment of the government, but
there are certain provisions in the
Constitution of 1895 which will have
to be amende or repealed before
there can be any appreciable reform
in taxation.
Article III, Section %, of the Con-
stitution of 1895, provides that call
taxes upon property, real and person
a.. shall be laid upon tho actual value
of the property taxed" 1t is mani
fest that the general property tax is
the main source of revenue in South
Carolina. Carrying out the intent of
the Constitution, TIE General As
sembly enacted law requiring: that
"all property shall be valued for tax
alton at its true value in money!
tSection 379, Civil Code of 1922
Prior to the creation of the South
Carolina Tax Commission in 1915, it
was we'll known fact that there was
no uniform basis of assessment used
by the boards of assessors throughout
the State. No better example of the
inequalities in the assessment of
property could be afforded than the
results of the State Tax Commits
sion's equalization of the banks m
1915. The Commission found that
there were some banks paying upon
an assessment as high as 81 per
cent. of their value, and others pay
ing on as low a basis as 1S per cent.
The Commission thereupon required
financial statements of all the banks
placing them upon a basis of equality
Tor purpose of taxation Ascertain
ing that the average percentage talk
en- for assessment throughout the
State was az per cent, the Commits
sion adopted this basis of percentage
of true value as the basis to assess
and equalize all property assessed
and equalized by it,
Another striking illustration of the
inequalities in assessment, made nos
sible under our tax laws, is the fact
that the State Tax Commission, when
1T equalized the property of mer-
merchants in 1919, found some mer
chants paying on an assessment of
three-fourths of one per cent, while
others were paying on basis of 1O5
per cent. of the value of the stock of
goods.
Since our law requires an "eoual
and uniform rate of assessment"
classification of property for pur-
poses of taxation is impossible with
out constitutional amendment. IF the
law, therefore, were rigidly enforced.
intangible property, such as notes,
bonds, mortgages etc, would be as
Sessed upon the same basis as other
property. Suppose A had $4,000
loaned on a mortgage of real estate
Under our law, the mortgage would
be assessed at $4,000, the taxes upon
! which would be about $275 or $500.
After dcducting the taxes from the
income of $500 (mortgage bearing 8
per cent. interest), the rate of in
terests realized on his investment
would be so small that the len
der thereof would take his capital
out of South Carolina and invest it
IN some other State that had prop
er classification Of property. If this
class of property were placed upon
the tax books as required by law, a
very large amount of capital would
be driven from the State, and our
people would De impoverished 10 that
extent.
The same rule applies to the tax
alton of cash. The law requires that
cash on hand January 1st be assess
ed 1t is well known that no one re-
turns cash, and yet when the tax
payer subscribes his name to the
oath on the tax return, he swears that
he has returned All his money, cred
its, etc.
There is no provision in our laws
providing for a tax to be levied on
business done or on sales, and con-
sequently many individuals and firms
are enabled to do an enormous
amount of business, and contribute
nothing to the support of the State
and county governments. For in
stance, there was a certain brokerage
concern in South Carolina last year
which did gross business of $1O,-
100000, and which paid taxes on an
assessment of $500 for furniture and
fixtures in this office. Is this fair and
just? This brokerage firm enjoyed
all the privileges and protection of
our government, and from the stand
point of ability to pay, was in much
better condition than thousands who
paid very much higher taxes.
Such is the operation and admins
tration of the general property tax.
There are many inequalities in the as
sessment of real estate, and this is
due to the facG that the taxpayer
! himself is the important factor in de-