Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-02-26
SAYS SEGREGATION ACT
OF 1915 is ONErSIDF.D
Declares Condition Due Largely to Fact That Common
wealth "Defaulted on Its Contract With LOCAL.
ties as Expressed in Act

Ihaethe tax situation In Virginia
rs inoetnsiblc and that such II con-
dition isduc largely TO the fact that
inc stat has dcfaultcd on its con-
tract W.T. the localities as expressed
In the Segregation bill OF 1915, Is
INC dec!altion OF Richard Evelyn
BYRD. forihr United States district
attorney io.thc Western District Of
Virginia.
inc stat" declares Mr.. Byrd
look from &c counties and cities
MANY sup1cc's, taxation and appro-
tho promise cx-essoa :, 10 co.
CATION act that q General Assemble
% i'i' "o"'d se To the cities and
COUNTIES me c"Hsirc right 10 tax
''ai cs'a'c anu tangible personal
- "S'e"5f doing this. the
Sia'c' "h'ie retaing all the sub
JeetS VI 'Hh"''oh s'regatcd to Itself
increased us TAX o'rcal estate and
tangible personal poortv wh,,h Z,
promised TO scgrcga(,o ~ ,
the 500.
The segregation y or Ia,5 ~.
sort OF compcnsatL for ,bc n
cents OH the 500 viii, mn, no, -a
tanned upon real csin. n.rnI,,od
the cities to tax intahb,es a, ,ho
reduced rate OF 30 ccnt,,n ,ho sIno
which can DO used for ~ nurna..
and permitted the county ,ha s.,,,a
tax. provided 1t Is uscd,rius,~or,
for roads. While segreaIrr no,b
ing TO the cities or ct,,;e. ,no
state has now segregated i,so,f.
ScEreEntes to ItS.
81. The rolling stock steam
railroad corporations.
"2. Incomes.
"S. Money in bank or in Z. hands
OF individuals or corporation
4. Insurance taxes and liee,es or
insurance companies.
-. All tangible personal poher,y
tHubject To local tax of cents
on the 5000.
&c. Taxes and licenses nxprcss
companies.
-. License taxes on sleeps and
dining car companies.
IS BY statute. tho Stattnrbi
trarily classes AZ capital, web is
intangible personal property, fol-
lowing tangible property:
IL inventory of stock on hR. In
Guiding all raw material for q In
business. whether at the plh OF
business or In storage elscwh.
All machinery and tools not tau as
real estate.
This. OF course. further dimlihcs
the tax subjects Of the local!tie.hc-
cause they are restricted 10 a 3Gen,
tax on the 500 intangible pernal
property
Calls segregation One-Sided
TO see how this one-s!dcd st.-
cation works in practice. takeho
city OF Richmond. The valuable taos
prepared by Mayor George Aiiic
show that In 1921 the city OF Ih-
mond paid into the treasury oIhe
State s2.312.ss3.09 and received hk
1Ai9,575. or 1874 per cent. This a.
normal and tnequitabic proportiors
largely tho result Of the so-caid
aggregation act OF 1915. That !,
and other laws take from the q,
OF Richmond all taxes on incot
rolling stock, insurance taxes, mon
and certain license taxes and rcd,Ic
It's RICH, TO tax intangiblcs to !,
cents on the 500.
An equal share In the tax on I,
tan gibles would give the city $3.50
300. An equal share In income IA
would give the city s2s2,56O.
THE loss 10 the city on ban
stocks, due to the lowering OF ratt
on bonds and notes, was $4,000
revenue for 1921. and. by the decis;o
OF the Supreme Court in the Me,
chants National Bank VS.. R!chmon
the city is compelled to refund sos7
722.99 or total loss of s3i7,7oo Q
with a continuing loss OF $4,000 nc
annum
Loss I'm Bank Stocks.
should the Goolrick bill. which re-
duces the total tax on bonds. notc
and other evidences of indebtedness
TO 90 cents on the 800, 35 to the star
ana 20 to the cities and counties no
come n law, the counties and cite
would lose 10 cents on the s,oo n
THIS class Of intangibles, because Tho
arc now allowed tax OF 81 cert.
The loss to the counties would r.. ~
the basis OF the 1920 assessment sc9
257. and to the cities. s50.1lS. q totn
OF S113.915. The loss in bank SOL,
would be much larger.
Section 52I9. Revised Statute .
the United States, provides that mn
tional bank stock cannot be taxed -
n greater rate than monied can, :,
in the hands of individuals. Then
fore, no national bank stock con,
be taxed more than SIS cents on sin
The State could not tax it's own ba y
more than it taxes the natio nj
banks.
IF the State retains it's tax of q
cents on $500 on hank stock, the lc