Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1926-02-17
PROPOSE TAX AMENDMENT.

amendment for the classification OF
money. accounts receivable. bonds aud
notes for taxation Is found what
many citizens OF West Virginia have
Teen contending for, for more than
twenty yenrs The amendment, IL
adopted. VIII have an important and
beneficial effect on the prosperity Of
the whole state.
The amendment Is n very simple
one and relates to Section l of Ar
ticle Y Of The Constitution, which
section now read as follows:-
Taxation shall be equal and uni
form throughout the State. and all
property, both -reaI usd personal, shall
be taxed In proportion to its value. to
be ascertaIned as directed by law. No
one species OF property from Which u
tax may be collected, shall be taxed
higher than any other other species
of property of equal value, but proper
ty used for educational, literary, sci
entific. religious or charitable pur-
poses NIL cemeteries and public
property may, by Inv, be exempted
from taxation. The Legislature shall
have power to tax, by uniform and
equal laws, all privileges and fran
chises Of persons and corporations.
The proposed amendment would
insert after the word value" as last
used the following Words
except that money, notes, accounts
receivable and bonds shall be taxed at
a 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 paid In said
units, upon real and other personal
property.
Other than for such insertion Sec
ton One, should the proposed amend
ment be adopted, will be word for
word as now.
Most of the States adjoining West
Virginia have already adopted CLASH
fcation. Four adjoining states have
the following provisions for taxing
intangible property -
KENTUCKY: Deposits one mill In
tangibles four mills (sane as loo on
500 and Zoe on $l00).
MARYLAND: Savings deposits 1871
cents per 500 for county purposes,
and 6Ac per 800 for state purposes !;
securities actual market value Doe per
500 for county purposes and loo for
State purposes.
Pennsylvania: -Four mills on the
dollar (sume as 40c OH 5000.
VIRGINIA.: Bonds, notes, ETC.. 31x
mills Oh the dollar for state purposes
and II maximum OF two mills for To-
cal purposes (bonds Of tile state and
itR civil divisions are taxed only at
the state rate) money, two mills for
state purposes only; capital, S1a mills
for state purposes and maximum Of
three mills for local purposes; shares
of stock, s mills for state purposes
and maximum of three mills for To-
cal purposes.
(Same as: Bonds. notes, etc, 35c
OF the 500 and zoe on the 500;
money, zoe on the $780, capital, Soc
for state purposes and soc for local
purposes shares of stock, Soc for
state purposes and 30c for local pur-
poses).
The first Thought is that taxation
revenue will be 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 1895 virtu-
rate of approximately An mills on
the dollar upon certain 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
an 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
1t Is said that muci. of the prestige
OF Pennsylvania, us u great manufac-
turing state, rests upon this.
The State of Virginia In 1915 adopt
cd classified property tax, which
from time to time has been amended.
Prior TO 1915 the general property
tax was imposed upon all classes of
property. The result of the new law
has been that the tax revenue from
intangibles almost doubled.
Kentucky adopted classification In
1921, and under Its classification of
four mills on the dollar the assessed
value OF intnngibles increased from
S69,OOo,0O0 to $396.000.0OO, In four
year period.
1t 10 further believed that the
amendment will prevent capital from
being driven out OF the state to avoid
taxation under our general property
tax; and that il will encourage capital
to come into the state for investment,
and for the development of our ma