Imperial Valley press., 1929-02-28
CHANGES
IN TAXES
OUTLINED
Commission Urges Sweep
ing Reform In States
System.
FOUR CHIEF POINTS
Recommendations Result.
of Years Survey By
Group of Experts.
by United Press Leased Wire

SACRAMENTO, Calf. Te6. 2S.--
Recommending Il personal income
tax, aboishing of the state board of
equalization and placing of state
ad valorem tax on all real estate, the
long awaited report Of the Califor
mia tax commission was disclosed
here today.
Declaring that the tax system of
the state is fundamentally faulty.
sweeping changes III the entire code
wore recommended by the commits
sion. The work eliminated a year
study by the commission, appointed
in 1927.
Briefly summarized, the highlights
Of the report are:
1. Abandonment of the present
gross receipts tax on public utilities
and imposition of per cent net
income tax, revenues to 90 to the
state.
, Return of real property of
public utilities to the counties for
local assessment.
). Ad valorem state tax on all
real estate, at an assessment of about
- cents on the hundred dollars.
l. Recommendation that the per
sonal property tax be repealed and
personal income tax ON all persons
substituted although the commission
feels that this change should not be
made hastily.
The counties would benefit by the
new system, for they would collect
approximately $50. .0OO,0 900 from tax
ing public utility property, a privi-
lege denied them for many years.
The state, on the other hand, would
receive about $40, 100000 from the
ad valorem tax ON real estate, it is
estimated, making up for the loss
in abandonment of the gross receipts
tax.
Will Solve Burden
Establishment of a tax on all
business, incorporated or not, and
adoption of the personal income tax,
will ultimately be solution of the
present heavy burden borne by real
estate, the commission believes.
Much comment was evoked at the
capitol today through the recon-
mendation of the commission abol.
lShing the state board of equaliza-
tion.
The duties of the now elective
board would be entrusted to Il per-
mancnt tax commission appointed
by the governor.
Defense of the commission for the
move is said to be that they do not
believe technical experts can be
secured through popular election.
Opponents of the move declare that
the assessing duties of the board of
equalization should never be en-
trusted to an appointed commission.
While members of the legislature
studied the report, rumors were cur
rent about the capitol that the inn
position Of an ad valorem tax, re-
/ turn of utility properties to the
! counties, and abolishing of the board
| of equalization would precipitate a
row when the recommendation are
pat before the lawmakers for action.
Political Fight Seen
'NNl'lIItH tHdt tH' NHpi' program
might start a political fight of the
first magnitude was advanced by
! many observers.
1t is understood that constitutions
, al amendments to put the recon-
mondationS of the commission into
effect would be proposed during this
session of the legislature. An OPP
portunity will be given members Of
both houses to study the plan for
several weeks before they are asked
to vote on thr propositions.
Irving Martin Of Stockton is
chairman of the commission aud the
members are; Lieutenant Governor
H. L, Carnahan; Chester Rowcll,
Bcrkcley; William j. Carr, state
railroad commissioner; State Con
troller Ray Riley; Dr. John r.
Harnes Los Angeles; X b. Hale,
San Francisco, and A. X. Heron,
atate director of finance.