Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1926-02-11
CONSTITUTIONAL AMENDMENT
FOR THE TAXATION OF
INTANGIBLES

notes for taxation ls f0und Wnat
many citizens Of West Virginia have
Leen contending for, for more than
twenty years. Tie amendment, il
adopted. win have ar Important and
b,1leiitial effect on the prosperity of
the whole Stale.
The amendment is a very simple
one and relates to Section of Ar
ticle Y of riie Constitution, which
section now read as follOws:-
"Taxation shall be equal and Uni
form throughout the Siale, aud all
p opnrfy both real and personal, shall
be taxed ~ proportion 10 Its value, TO
he ;lscerlalned as directed by law. No
one species OF property from which a
tax may be collected, shall be taxed
higher Than any other other species
of property of equal value, but proper
~ used for educational, literary, sci
eniific. religious or charitable pur-
poses; I'LL cemeteries and public
property may, by law, be exempted
from taxation The Legislature shall
have power 10 lax, by uniform and
equal laws, all privileges and fran
cllises of persons and corporations.
The proposed amenllnent would
insert after lie word value" IFS last
used lie following Words
except ibut money, notes, accounts
receivable and bonds shall be taxed at
d rate not to exceed fifty cents OH
each one hundred dollars OF the true
and actual value thereof, and the rev.
enue derived from THIS source shall
be ;rpportioned by the Legislature
among the levying units Of the state
in proportion to the levy paid in said
units, upon real and other personal
property
Other than for such insertion Sec
ton One, should The proposed amend
nent be adopted, will be word for
word as now.
Most Of the .Slates adjoining West
Virginin have already adopted CLASH
fication. Four adjoining states have
the following provisions for taxing
intangible property -
KENTUCKY: Deposits one mill; in
tangibles four mills (sanie as Zoe on
500 and Zoe on $l00).
MARYLAND: Savings deposits 1874
cents per 500 for county purposes,
and SIC per 500 for state purposes;
securities actual market value 30c per
500 for county purposes and 15c for
State purposes.
PENNSYLVANIA: -Four mills on the
dollar (snne as 40c ON 5000.
VIRGINIA: Bonds, notes, etc, 81
mills on the dollar for state purposes
and a maximum of two mills for To-
cal purposes (bonds of the state and
its civil divisions are taxed only at
the state rate) money, two mills for
state purposes only; capital, S1a mills
three mills for local purposes; shares
of stock, S mills for state purposes
and 4 maximum Of three mills for To-
cal purposes.
(Sane as: Bonds, notes, etc, Soc
Oh file 500 ami 20t. Oh the $10o;
money, zoe on the 500; capital, SOC
for state purposes ana SOC for local
purposes; shares Of stock, Soc for
state purposes and zoe for local pur-
poses).
Me first thought is that taxation
revenue will DE reduced if the amend
ment is adopted. Quite The contrary
has been The experience of states hav-
ing classification laws
In Maryland. The law Of 1896 virtu-
ally established a uniform tax ut the
rate of approximately Az mills on
the dollar upon cerlsin classes of in
tangible wealth. In the City of Balti-
more alone the assessed value Of
such classes of intangible property
increased twenty-five times
In Pennsylvania, the uniform tax
on personal property, chiefly that Of
All intangible character, has been in
operation for nearly thirty years, with
the result That the amount of prop
erty locally assessed throughout the
state has Increased somewhat faster
than the assessment of real estate.
1t is said that much of the prestige
vi Pennsylvania, Ms a great nanufac-
WI lhE StdtN, lNStS Hhbti ME.
The State of Virginia in 1915 adopt
ed !. classified property tax, which
ArotA tlIse 10 time has been amended.
Prior 10 1919 tlle general prnperty
tax was imposed upon all classes Of
property. The result Ut the new law
has been shat the tax revenue from
iAtansibles almost doubled
kentucky adopted classification in
1921, and under its classification Of
four mills sh The dsllar the assessed
value VI atansiblss increased from
$50 ssU. 900 ts S:ssG.o0O, 40, in ii fs5sr-
year period.
1t is further helierttl that the
amendment will prevent capital frsm
being driven anI Of Aie state TO avoid
taxation ander -,lr general property
lax; and that il will encourage capital
To come into the Stale for investment,
and for HE development of our ma
tur:ii resources.