Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-03-22
STATE TAXES.
CUT IN HALF
Governor Trinkle Signs Bill
Slashing Rate on IN
tangibles
Saws Millions of Dollars of Property
will be Reparted if Citizens Show
Fairness That State Has

Richmond, March 22-Taxes for
the current year On bonds, notes and
demands will be at the rate of -
cents no the 500, instead Of $l,lO
per 500, as prevailed in yeas past.
Governor e. Lee Trinlilc having
signed Senate hill No. q, amending
sections 8 and 9 of the act TO raise
rcvenne for the support Of the state
government and public free schools.
The drastic reduction as provided
for in the bill was recommended By
Gov. Trinkle in his inaugural ad-
dress for the purpose of providing
ready money at a reasonable rate Of
! interest for the indispensable needs
of all classes Of people: to provide
funds in rural districts for financing
crops, and in cities for the encour-
agemcnt Of building, and for the pro
motion generally Of the industrial,
activities Of the State.
The governor pointed out, at that
time. that millions Of dollars Of Vir-
ginia money now are being loaned in
other States of the Union which per-
nit higher interest charges, and that
a reduction in the tax rate by the
State would allow greater return
to the investor on money invested in
this State and thereby encourage the
Iloan;ng of this money in Virginia,
where it would aid in the development
Of the State.
While the new law relieves the tax-
payer from the payment of back
taxes on this class Of property il he
voluntarily reports it ion taxation
this year and pays the Tax thereon by
December |, it contains drastic pro-
visions designed to force taxpayers tG
disclose this class Of property Tor
taxation in the future 1t is generally
recognized that millions OF dollars
worth of this class Of property Is con-
cealed every year, thus escaping tax
alton.
Under the new law. if such prop
ierty is omitted from taxation and Is
afterwards discovered by the taxing
officer, a penalty Of 100 per cent wi!
be added TO the taxes. Moreover, no
owner of bonds, notes, or other eVi-
dcnce of debt will be allowed to insti-
tute suit for the collection Of the
same, unless he alleges that the bonds,
notes or other evidence OF debt upon
which he is suing have been reported
for taxation and assessed for each
and every year Of which he was the
owner, and no. judgment rendered IN
such a suit will be valid unless 1t re-
cites that such allegation was made.
In discussing this provision of the
| law. the governor said yesterday:
"This is drastic provision. but our
courts should not assist in the collec-
ton of debts upon which the proper
taxes have not been paid"
Under the new law, taxpayers will
not be allowed to deduct bonds, notes
or debts owing to others. While some
few taxpayers who have been accus-
TONED to offset part of this class OF
property with their debts will be re-
quireG to pay taxes on larger vol
ume than heretofore, the reduction
of the tax rate will tend 70 lesson the
amount Of the taxes, and the ellmlna-
tion Of the deductions will place the
owners of this class of property on
The same footing with owners of real
estate and tangible personal property,
who have never been allowed deduc-
tions or offsets. This provision also
will eliminate many improper deduc-
tions which have been claimed under
the Old law, and will, it is believed.
mako up n large part Of the deficit
which ordinarily would result from a
reduction Of the tax rate.
The bill also changes the definition
If money on 'deposit. Under the old
law. money on deposit with any bank
~ other corporation or firm or person
vas taxable at 20 cents. A practice
developed among a number Of taEpay-
e"s connected with corporations Of
placing with the corporation moneT
subject to cali upon which they re-
ceived interest at G per cent ner an
mum. This money was reported for
taxation as money on deposit, ana
taved at 20 cents.
Under the law as amended, unless
the money is DEPOSITED with bank
or other corporation or firm or per-
son doing banking business. it is
classed as a debt and taxed at S.
cents. And. even thought the money
is on deposit with bank if certi(i-
cate of deposit bearing total inter-
est rate paid or to be paid exceeding
> per cent per annum is issued there
able as m evidence Of debt and bears
for. such certificate or deposit is tax