The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-06-27
HIAlL!ANAIl URGES
THA PROPERTY
B CLASSIFIED
State Tax c Commission Points
Out Advantages to Bank
ersT in Session.

WHITE SULPHUR SPRINGS.
Nv. Va June 27-CIassification of
property for taxation, in order that
Of capital may be at
5traeted. was urged by State,tTax
"Reminiscences Walter s.. Ha1lanan
before the annual convention Of
tine West Virgfpt1 Bankers Asso-
citation here To-Day.
sssYest V::rginia's natural re-
sources will make of 1t the work
shop Of the nation, IL we are able
ITO workout tax policy that will
mot drive investment away from
he declared, at the same time
5pointings out that the state was al
-innost surrounded by others where
1.-The c1assification of property had
been adopted.
Anendnent Urged.
Urging an amenrment to the
CONSTITUTION to make possible re-
$5stricted tax rates on money, cred
sfeTcs in Pennsylvania, Maryland,
Virginia and Kentucky, the tax
Reconnaissance devoted special at
fentionSto the results that had been
achieved In Kentucky. Property
3Icfassifi there, he said, had
been provided only within the last
three years, but it was found that,
with 8money,@notes and bonds sub
ject9tc a state rate of only 40 cents
5on $40 o.. aassessment OF that class
"a f$$property increased from a little
more than 100000 to more than
$3.50 00,000in the first two years.
Intangible wealth came out Of
hiding under reasonable tax
rate he continued. .'and the state
Etbenefited greatly by the increase
#insthe assessment, even though the
levy was much less. Kentucky
Went~even farther in fixing a guar
s9anteed rate of&10 cents per 500 on
bank d. posits:r. Money, found its
sway8into the banks that had never
been there before. There was such
stimulation in business as could
8notshave been brought about in any
$other8Sway.
The moneys that have gone into
Tia on-taxable bonds have produced
mo local benefit but the community
III EdepTived largely on it's liquid re
sources so essential to its expan-
sion and growth. Funds that would
he used for local development and
automatically in
Screasing the assessed property, are
withdrawn for the purpose of avoid
sdngSthe excessive tax rate.
tsAs bankers, you gentlemen
s1Snow# how correctly I speak when
~ Ssayt that millions OF dollars year
ny are8b icing taken out of the banks
sand invested in non-taxaple secur:.
ties, because those who possess
s1noney|do not prop se to have the
learning power of it entirely taken
away by exorbitant tax leyies when
there is a way to avoid it. To just
that extent, legitimate business is
suffering today because money can
.not&be made available through reg
3aIlar banking channels.
Only Solution.
There canAbe only one solution
sof this problem and that must come
Through an amendment to our con-
sstitution so as to classify property
sforstaxation. believe that through
Sacampaign of education, such an
can be made effective
Several efforts have been made in
previous years to have the Legisla-
sf41ure submit such an amendment to
the voters but it has unifirmly
failed of the required two-thirds
maj or.ty. II believe, however. that
SHhere exists a wider recognition of
the necessity for some changes in
our basic system of taxation to
place West Virginia in a position
to- cope with other states under
Spresent-day conditions
addition to relating effects Of
Restricted rates in Kentucky, Mr.
SJIallanan gave the provision of
laws in other states bordering on
West Virginia. In Pennsylvania he
said there was a fixed rate OF 40
cents per $1oO in money, credits,
sto cks, bonds, etc, as compared to
tine average rate in West Virginia
last wear of So &C. The mothe,.
state of Virginia, he said, fixed a
restricted rate OF SIS cents per 500
on such property, while in Mary
land the rate on Stocks bonds and
credits was 40 cents per $500 and
We're tax free unless
deposited outside the state, in
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