Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1926-04-08
KENTUCKY TAX
lessons BURDEN
ON REAL ESTATE
IntanGibIeS Produce Larger
Revenue Proportion Under
Classification Plan.

CldSSlIiCaIl0n ran.
That the Classification Amendment
to the Constitution of West Virginia
will lessen the burden Of taxes on real
estate is indicated by the experience
of other states where the plan now
before the people Of West Virginia has
been put into effect. This is support
ed by the report Of the State Tax
Commission of Kentucky for 1924.
This report shows, among other
things, that in 1917 real estate taxes
in Kentucky produced more than II
per cent Of the states revenue from
direct levies, while intangible personal
property produced only about seven
and one-half per cent of the total.
In 1924, seven years later, under
the operation of the classification law,
the proportion of direct taxes pro-
duced by real estate had dropped to
a. per cent of the whole, while the
revenue from intangibles had increas-
ed to almost - per cent of the total.
Expressed in dollars the revenue
from taxes on intangbles increased
from $37S,000 in 1917 to $1,9S4,000 In
1924
Moreover, the Kentucky Commission
reports that in 1925 d still further
marked increase was shown in the
assessment of intangibles.
The West Virginia legislature of
1928 submitted to the voters pro-
posed property Classification Amend
ment' relating to Section / of Article
y of the state constitution, to be acted
on in the November elections this year.
This section now reads
Taxation shall be equal and uni
form throughout the State, and all
property, both real and personal. shall
be taxed in proportion to its value, to
be ascertained as directed by law. No
one species of property from which
tax may be collected, shall be taxed
higher than any other species of
property of equal value but property
used for educational, literary, scien-
tihc religious or charitable purposes;
all cemeteries, and public property,
may, by law, be exempt from taxation.
The Legislature shall have power to
tax, by uniform and equal laws, all
privileges and franchises of persons
and corporations"
The proposed amendment would in
sert after the word value" as last
used the following words:
except, that money, notes, accounts
receivable, and bonds. shall be taxed
at rate not to exceed fifty cents on
each one hundred dollars of the true
and actual value thereof, and the rev
enue derived from this source shall
be apportioned by the Legislature
among the levying units of the state
in proportion to the levy laid in said
units upon real and other personal
property"
Proposal to classify money and in
tangbles for a low rate of taxation is
not new in West Virginia. In fact,
hackers of the Proposed Amendment
declare there is every reason to be-
lieve that the state legislature would
have long ago adopted the plan had
it not been for the barrier interposed
by the Constitution. In the mean
while many other states have adopted
it and by reason of its application
have obtained larger revenues and at
the same time attracted capital for
development.
1t is an open secret that the applica-
bility of the normal tax rate to in
tangibles has forced capital into hid
ing that money IL Invested in non
taxable securities which might other
wise be brought to Ig.t and loaned
for the commercial, aHd still more i'm
portant, the Industrial development of
the state.
is.. cyrA - o.