Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-18
STATE INCOME TAX
Continued from Page One,

{Continued from Page Ons)
except partnerships), joint-stock com.
pany, common-law company, business
trust, corporation and insurance CON
pany deriving an income from any
source or sources within this state,
which tax shall be assessed, collected
and paid annually, with respect to the
net income, as herein defined, Of such
individuals, associations. joint stock
companies, common-law companies,
business trusts, corporations and in
surance companies, derived from any
computed at the following rate: G)
Two per centum of the entire amount
Of such net income; (2) Such normal
tax shall be first assessed, collected
and paid in the year 1928 and with
respect to the net income for the cal
endar year 1922 or for any fiscal year
ending during the calendar year 1922.
Carries Surtax
(b) That in addition to the normal
tax imposed by subdivision (a) of this
upon every individual, association
WA Jaw company DubA
ness trust, corporation and insurance
Except partnerships), joint stock
company deriving IN income from any
source or sources within this state,
which sur-tax shall be assessed, col
iected and paid annually with respect
to the net income of such individuals,
etc., computed at the following rates,
to-wit:
"O-One-quarter of l per cent of
the amount by which the net income
exceeds $1,000 and does not exceed
$1,000; one-half of 1 per cent of the
amount by which the net income ex-
ceeds $1,000 and does not exceed
$1,000; l per cent of the amount by
which the net income exceeds $4,000
and does O exceed $4,000; ~ per
cent of the amount by which the net
income exceeds $1,000 and does not ex-
coed 5000; , per cent of the amount
by which the net income exceeds $4,000
of the mount by which the net in
come exceeds $4,000 and does not ex-
coed $1,000; 4 per cent of the amount
by which the net income exceeds
$1,000.
Hits Non-Residents
Section 4, Income of residents and
non-residents. Taxes shall be assess
ed. collected and paid annually by every
person residing within this state and
by every o resident of this state,
with respect to such income as is de-
rived from property located or trade
or business carried on or transacted
within this state: and in determining
income, rentals. royalties and gains or
profits from the operation Of my
farm, mine or quarry shall follow the
situs of the property from which de-
rived and income from personal serv-
ice and from land contracts, mort
cages. stocks, bonds. securities, inter
est, deposits and credits shall follow
the residence of the recipients. With
respect Ia other income, persons en-
gagged in business both within and out
side the state shall be taxed only with
to such income as is derived
from the trade or business transacted
and property located within the state.
which shall be determined by an allo-
cation and separate accounting for such
when made in the manner and
form prescribed by sections 5 and 6
Of this act"
Dividends and Adjustments
Section Z provides that the term.
dividend" means any distribution
by a corporation to its share
or members, whether in cash.
property or stock of the corporation, |
out of its earnings or profits accumu-
Iated since Dec. 81, 1921.
Section 8 provides that in the case
IF mines, oil and gas wells. other nat ;
lrnl deposits and timber, the depletion
according to the peculiar conditions /
n each case, based upon cost. includ-
ng cost of development not other
wise deducted.
Section 5 goes to considerable length
n setting forth the basis for deter
mining gain or loss.
Section II overs allowable deduc-
ions. 1t provides that in computing
Jet incomes there shall be allowed all
ordinary and necessary expenses paid
n incurred during the taxable year in
on any trade or business;
III interest paid on Indebtedness; taxes
aid or accrued within the year; losses
ustained and not compensated by in
urance or otherwise: worthless debts
harged off during the year; reason
bic allowance for exhaustion. wear
nd tear of property used in the trade
r business: depletion and depreciation
t improvements in connection with
udLuTd1 ucpOSilS ana tlnlbpf.
not exceeding Is per cent
( the net income; property comnul-
orily or ~involuntarily converted into
ash or its equivalent as n result Of
.ostruction, theft or seizure or by
equisifion or condemnation.
Section Is specifies that no deduc-
ions shall be allowed for personal, |
wing or family expenses, new build
1gS or permanent improvements or
etterments of property whereby the
alue of such is increased; amount ex-
ended in restoring property for which
n allowance has been made; or for
paid on life insurance poll
les covering any employe or any per-
financially interested in the bust
css carried on BY the taxpayer when
c is directly or indirectly a benefi-
larry under such policy. +,
Credits Allowed Taxpayer !,
Credits allowed taxpayers are COW
red in section 16 as follows: Divi-
from corporations which are al
eady taxable under this act; interest
eceived on United States bonds and
onds Of the War Finance corporation:
personal credit of $1.00 in the case
I a single person or $1,000 in the case
I a head Of a family or married per-
on living with husband or wife, and
300 FOR each person for each depend
(other than hushap ~ u;fal vybo