Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-02-01
Lynn and State Finances

State Auditor Moore Lynn has submitted a report
to the And legislature. He is not only the auditor
but an efficiency expert as well. He tells it TO the
lawmakers that state finances handled by the depart
ment OF the state comptroller have not been properly
protected. He AYERS that lax administration Of the
gross receipts tax law results in a serious economic
loss to the state and the amounts due to the state
from "a railroad companies would amount to consid-
erably more than $4,000. He advised the lawmakers
shat steps had been taken by the comptroller to cor
rect many operating deficiencies and had Installed a
uniform system OF handling receipts and disburse-
rnents which would result In great savings. He re-
ported inefficient administration Of the tax on rail-
road and car companies relative to the rental and
Interchange Of freight cars and he added that II the
law governing the railroads In this respect was con-
s~titutional considerable sums were due to the state
from these operations.
S Texas has a pistol law. Administration Of the gross
receipts tax on dealers in pistols was censured by
Auditor Lynn. He declared that no tax has been
paid on the sale Of pistols since 1927, although the
Statute provides a tax OF so per cent on this commodity
or side ornament for all a gentleman all dressed UP
with no place to 60" AS for the pistol law 1t has its
amusing sideline. Auditor Lynn stated that In some
cases pistols are leased for 90 years. which, according
TO the opinion Of the attorney general, is a bald sub
terfuge to evade payment OF the tax. One seller OF
pistols. engaged In trade at wholesale, has not OBJ
tair11 a gross receipt permit and as a dealer IN small
BIL& LdO IIte- PAID HAS S4I11 receipts Tax a peruSai
OF tie report disclosed that UT telephone companies
operating ia Texas have not paid a gross receipts tax
during the past three years. Extent Of the operations
OF 24 could not be ascertained.
He reported to the lawmakers that the state had
lost S2,50o.000 through failure to enforce the tax on
casing gas under the statute providing for a gross
production tax on oil. Incidentally he said a number
OF telephone companies were not assessed ad valorem
taxes In 1929. Tn a section dealing with state and fed
eral inheritance taxes. Auditor Lynn averred that in
yestigation showed difference In valuations were be-
ing placed on estates for federal and state tax pur-
pose. In six instances the total reported to the fed
.eral government was 81. 940.116 more than reported
to the state government. In one instance a tract Of
Hand valued at S563025 was reported to the federal
government and left off the report to the state gov
eminent. In the handling OF one estate the state
lost $4,000 in inheritance taxes because Of failure to
enforce the law, according to the reports to the law
,makers by the efficiency expert who is likewise the
auditor of the state. He recommended revising the
state inheritance tax law to provide for payment Of
state and federal taxes on the same basis.
For the first time IN the history Of Texas the office
OF auditor and efficiency expert was created by Gov.