New Britain herald., 1929-07-17

ress in tax reform has been slow in the United States. Governor Harry | Flood Byrd, of Virginia, said today in addressing the governors confer ence on Segregation of the Subjects of Taxation
 The work of revising and modern iZing archaic systems of taxation has only begun in this country. he said. and the highly unsatisfactory gen. eral property tax which should have been discarded years ago still is in general use in most of the states of the union.
 State rates are generally low in the general property tax plan, the governor explained, but when local levies are laid upon the same prop erty the rates always are high and when the local rates are applied 10
 intangible personal property they are found to be confi~ccatory.
 Real Estate Under assessed
 "The reason for this is that real estate is gro""lv under? rsNSSed in every state of the union." he contin- ned. "whcrcSs intan~ible personal property. such as bonds and notes, is not oqu9llv urdor-asaessed if if is aeses~nd at all. but such intangible personal property os assessed at it's actual worth"
 Intangibles are not declared for ia Xation by many people, he dcclar- cd, because they cannot afford to re- turn them and tax authorities find it imnossblc to enforce unjust laws
 In face of such evils, Governor Byrd said some states are substi- tutng the classified property tax for the general property tax. SeGroga- tion always involves classification, he explained, which provides fer the setting anart of certain subjects of taxation for state taxation exclusive lv and of certain subjects for eXclu- svo local taxation.
 "The rock upon which segregation rests is the setting apart of real es- tate for local taxation exclusively, This is the fundamental idea, and most of the rest nnturally and nor mally follows. At the present time, Ftt'l t' ll' l'' llDl lltN''i loi otfli'' bbl- noses in California, Delaware. North Carolina. Pennsylvania and Nir- gina."
 Describes States Plan Under Nir~inia's classified prop erty tax plan, he said. there is complete separation of the sources of state and local revenue. Real estate capital of merchants, machinery and | tools lr"d in miniHe or manufactur- ing, and all tav"b ble tangible noreNnaI property c-hcr than tho rolling stock of corporations onerHti"g r-""m rail- roads are subject to local taxation
 only.
 "All othcr subjects of taxation, eX- | cept as h"reino fter stated. are @c- greeated for state taxation only. | Among the~e state subjects may be mentioned intangible personal prop erty the rolling stock of all corNora-
 lions operating railroads by stc&m, l incomes hank stock. inhcritancos,
 motor vehicle fuel certain state
 franchises and state licenses. Cities and towns. but not counties. are Giv- on the power to impose certain local l license taxes. The state imposes a nor-ca nitaiion tax refunded in part to the localities"
 Hcreats All People
 T'le adoption of segregation in Virginia has benefited all the people, he said. but in some states the plan would not be reasonably possible un- der existing condition. Progress in ! tax reform. he concluded. requires ! the enactment of the necessary legls- ! lation and efficiency in segregation, i depending upon the conditions in the particular state involved.