The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-19
THOUSANDS OF
CHAIN STORES
TO PAY TAXES
Supreme Court Decision Is
Hailed as Salvation by
Leslie Regime.

CQaln stores OFFICIALS 1rOWned, DuL
Governor Harry G. Leslie's admin
istration and Indiana's bankrupt
schools rejoiced today over the
United States supreme court deci-
sion, which, Monday, held valid and
constitutional the states 1929 chain
store tax act,
The Republican state admins
tration was jubilant because the
store licensing revenues may re-
move necessity for another Scent
boost in the state tax rate, al
ready increased from % to 20 cebN
under the Leslie regime.
State aid public schools, many
of which have closed their doors, re-
duced teaching staffs, or left with
out teachers paylesS for months,
welcomed the decision, which prom
iseS a source of revenue sufficient
to erase speedily the $l,G00,000
school aid deficit.
Has Bearing "a Election
Both Republican, and Democrats
concede the decision will have an
important bearing on Indiana's 1882
election by its effect on taxation
and virtual elimination of the con-
troversial school aid problem in
southern Indiana, heavily Demo-
cratic.
The act, upheld in the supreme
court decision which reversed fed
eral court here, levies an annual
license fee of So on stores Singly
owned or operated, with fees rang
ing upward to $25 each when more
than twenty are in one chain.
Powerless to appeal further in
views Of the highest courts ruling,
chain store operators today were
predicting the decision would pave
the way for what they termed fur
ther raids" on chain establishments
throughout the nation.
They have commended as unfair
and unconstitutional the levying of
a So tax on a singly operated, huge
department store while each small
store in large chain must pay a
$25 license fee annually.
Thousands to Pay
Effective as of July 1, 1929, adj
ministration of the act by the state
tax board will require early pay
ment of two and one-half years
license fees from, it is estimated,
10000 or $4,000 Indiana stores
The sum already due, and to be
collected as soon as the machinery
can be set up, is estimated roughly
at 100000, the approximate school
aid deficit
The act provides that in 1929
school aid should receive $25o,0O0
from the store license revenues: in
1880, $550,000; in 1881, $500, 900, and
each year thereafter 100000.
Until the chain store decision
came down, further increase in the
state tax levy by at least 8 cents
was contemplated, William Cos
grove, assistant state auditor, adj
mitted today.
LevieS Are Increased
The 1881 state budget increased
special levies by 51s mills. The
board of agriculture levy was in
creased / mill; the George Rogers
Clark levy by liz mills, and the
state library and historical build
ing levy by Il cent.
The World war memorial levy was
reduced by 2 mills, SO that the net
increase was 51s nills-a little more
than 6 cents.
Until the store licensing revenues
were assured, the states school aid
deficit could be met only by the Is
per cent of the 7-cent state school
levy made available for that pur-
pose. In three years the deficit has
mounted to $1,013,584.71.
James Showalter, chairman of the
state tax board, said today that
plans are being advanced for adj
lninistering the store license tax, but
that it will be some time before
forms can be printed, rules pre-
scribed, and forces augmented to
tackle the huge task.
"StOre" Is Defined
Attorney General James M. Og-
den doubtless will be asked for rul-
ings on types of firms coming with
in the acts definition of "store" and
liable to payment of the tax. Says
the act:
1.-THE term store as used in this
act shall be construed to mean and
include any store or stores or any
mercantile establishment or estan-
IshmentS which are owned, oper-
ated, maintained, or controlled by
the same person, firm, corporation,
co-partnerShip or association, either
domestic or foreign, in which goods,
wares or merchandise of any kino
are sold, either at retail or whole
SALE"
Large companies operating scores
or hundreds of filling stations are
expected to insist on a. ruling before