Smyrna times., 1923-02-21
HIGHER SCHOOL TAX CERTAIN
Chairman Collins Sees Higher Real
Estate Rate and Tax on Deposits

Estate Rate and Tax on Deposits
John B. Hutton, attorney for the
House, is preparing an Appropriation
bill for the first six months of this
year, under instructions from the bud
get committee of the Legislature. 1t
is necessary to prepare this six
months Appropriation bill because of
the change in the States fiscal year
from January l to July l. When this
bill is out of the way, Mr.. Hutton
will start on the main appropriation
budget to cover the ensuing two years
from July l. Nothing definite has
been decided yet as to what will be
allowed in the Appropriation bill for
the operation of the public schools for
the next two years. Chairman Col
Inns and other members of the budget
committee contend there is no doubt
the amount asked for schools will
have to be greatly reduced, unless
some other means of raising school
revenue is found. The State Board
of Education asks for $2,500,000 the
first year and $2,6OO,O0O the second
year for running the schools. This is
more than half a million dollars for
each year above what was received as
school revenue last year, and cOnse-
quently the committee feels it would
be foolish to appropriate for schools
at least $5OO,OO0 a year more than
will be received for that purpose. To
carry out such a program, it is con-
tended, the $5OO,0OO a year would
have to be taken from the general
fund and that fund would hardly be
able to stand such a strain.
The suggestion has been made that
the possibilities are that much more
will be received for school purposes
this year than last year, especially
from the income tax and the corpora
tion tax, because of conditions. Chair
man Collins says the committee has
thought of the possibility of receiving
more revenue, but that it is in no way
sure, and the committee could hardly
make appropriations depending upon
the school income being much larger
than last year.
Chairman Collins is convinced that
/ if the State Board of Education is to
get all it asks for, additional legisla-
/ ton will have to be provided to bring
in more revenue for the schools. He
has suggested two ways in which ode
pendable taxes" as he terms them,
may bring this additional revenue.
One is to increase the rate on real es-
tate for school purposes and the other
is to tax bank deposits. He says bank
deposits are taxed in some States and
might be restored to here for school
purposes if the people of the State
insist on the Legislature appropriate
ing more to schools than the present
finances will stand.
Mr.. Collins also contends that the
cry so often heard that real estate is
over-taxed for school purposes is
largely "bunk." The 25 cent rate
which prevails throughout the State
at present, he says, is unusually low
possibly the lowest real estate tax fol
schools in the country. If this rate
should be raised to 35 or 40 cents
and a tax placed on bank deposits, i
would bring in the required extr;
revenue.
These two methods for raising ad
= ditional taxes were suggested by Mr.
= Collins to several bankers from Sus
= sex county, Wednesday, who wer,
2 members of delegation that appear
S ed before the House appropriation
3 committee in support of the Stat
/ Board of Education's school program