The daily times., 1921-08-19
TAXES

The discussion now going on be-
tween the editor of the News and
Observer. Governor Morrison and the
tax equalization board with refer
ence to the rebates given the Amer
lean Tobacco Company and Llggett
and Myers brings the whole question
hack to where it first started, tax re-
valuation and tax equalization.
After reading the statement from
Commissioner Watts, one should rot
doubt that the matter of rebate was
handled carefully as other matters
of the same kind are considered.
There was the usual number of prom
inent citizens from Durham, who are
interested III the development of their
town, and are naturally friends or
the manufacturers, appearing before
the board with their protest that the
assessments on the stocks of tobac-
co were too high. 1t was handled
Just exactly as a farmer in Wilson
county or a merchant would handle
a similar case.
The Times has always contenled
that property should be listed at it's
true value, that is at the price it will
bring when sold. We were pleased
when the legislature ordered that all
property should be revalued on this
basis. When prices declined in 1920
a hue and cry was raised that the
as a result of this agitation the leg
lslature cut assessments. AS a re-
suit the tax boards and the county
commissioners have been up in the
air ever since trying to satisfy prop
serty owners and at the same time
raise sufficient revenue to pay the
expenses of government.
We recall that the land values in
Wilson county prior to the revalua-
ton were fixed at SIS per acre. The
revaluation fixed the average at
$115 per acre, and yet there was
complaint that this valuation was
too high when much of the land in
Wilson county in 1919 sold for $500
per acre and a great deal of it clear
ed $500 per acre in tobacco. We
merely mention this to show that
people as a rule everlastingly kick at
paying taxes, which are based of
course upon the sesessed value of
property.
The old way of fixing valuations
was to let assessors list property at
about what they wanted to pay on
theirs. This applied both to real
and personal property. Inasmuch as
there was no real basis to determine
values the assessments were un-
equal, and when the gap was let
down in 1921 the tobacco companies
asked for a rebate on the 1920 taxes
which should have been paid in 1920
and it seems these were granted in
two instances.
1t matters not how the asses
ments are made provided there is an
equality of assessment, and it mat-
tiers not how high the assessments
are provided every one is treated
assessment is upon the value OF
property based upon it's corning
power. If any other rule is follow
ed, some might pay too much tax,
and others too little. When this is
done the rate should be so fixed as
to provide sufficient revenue to de-
fray the expenses Of the government
and the higher the assessment, the
lower the rate and vice versa.
The Federal government follows
this rule in collecting taxes. 1t re-
quFes report as to gross receipts
and disbursements. That deter
mines the income, and also REQUIRES
the value of additions in the shane
OF reserves or improvements and that
nxes the value of the capital stock
Ine State does not proceed along this
Hne as shown in the rebates to the
tobacco companies.