Milford chronicle., 1931-02-06
g 2TAXLEVY FOR
SCHOOLS URGED
BYP.S. DU PONT
LCOntinued from Fvn Page]

3
, tions taxed under the Corporation
, Annual Franchise Tax was 1896
an increase of 5,240 or 1873 per cent
over the previous year.
While the per dollar cost of last
years tax collections by the tax de-
partment is not set out in the re-
port, the total of operating expenses
for the year which is given indicates
that Mr.. duPOnt's Office collected
the $7,O55, ,488.04 at a cost of slight
ly more than one and one-half cents
per dollar.
The fact that State revenue from
these taxes increased Al per cent
with a comparatively small increase
in the number of taxables, again
| calls attention to the necessity of
maintaining just laws clearly word
ed and fairly administered in order
to serve the revenue required, Mr..
DUPONT said.
No tax should be levied that will
tend to discourage prospective new
residents of Delaware, be they per-
sons or corporations, or to alien
ate those already seeking the pro-
| lection of our laws, he adds.
He calls attention again to the
| fact that the income tax is the only
direct tax for the support Of the
public. schools levied by the State or
by the counties. However, the City
of Wilmington and the special school
districts collected $323,O46.52 for
school purposes by direct taxation,
he cites.
His reports continues with the
recommendation of the 50 caDitation
tax.
The Importance of the tax on
franchises of corporations, which
have organized under Delaware laws
should be again noted, MIR. dupont
states, showing that the amount of
this tax collected for 1880 shows an
increase of almost 68 per cent over |
that of 1929. Together with corpor-
alton fees the total annual income |
from corporations amounts ia &c.
222,436.
The effort to perfect the list of
taxables shows intent to treat ali
alike and to collect all taxes due,
MIR. DUPONT believes. Collections, he
said, are greater and the taxpayers
are more cOntented when they feel
that a spirit of fairness prevails and
THAT an honest endeavOr is made to
locate all taXables and to obtain re-
turns from them, he adds.
"The recent census of the United
States,'' the report continues,
shows for Delaware 14S,792 citi-
zens or residents over 81 years of .
age. Excepting those not citizens or
residents prior to January, 1880,
these are all 'taxables' under the law
and should make return to the tax
Prior to November,
1880, the department had list of
117046 names of persons of whom
1O0,54O had made the required re-
port for 1880. 20,
"Of the remaining S,431 persons ;
have reported in other years but /
fail to respond to recent notices. ,
Their names have been reported to
for collection Of penal I
ties due for failure to make returns
and these penalties are being gradu-
ally collected.
"The income tax law of 1929 has +
been in force. for one year. Prac- I
.ical experience has brought to light s
4 number Of minor points which
nave required ruling by the Tax De-
)artment and should now be incOr- {
1orated in the law" Mr.. DUPONT v
;aid. i
The ruling he recommends be in 6
,orporated in the law follow: a
First, income is taxable to the Il
cal owner even though transferred 4
II alienated to another to be held or I
lsed for the owners benefit. @
Second, difference between fair d
market value and cost to an em- ii
,loyee is required to be accounted b
S income by an employee purchas /,
ng property from an employer cor
OratiOn. II
Third, the value of property sold, G.
destroyed or otherwise IL
isposed of is reduced for wear and n
ear, ObsOlescence and depletion, b
rhether previously allowed or not $,
t the time when claim is made for II
Dss on a tax return. c,
Fourth, in calculating a claim for r,
)ss on sale, exchange, or other dis
ositiOns of property acquired be- in
)re January l, 1920, such loss may ty
OF exceed the difference between s,
riginal cost and amount received. III
Fifth, a receiver is among those II.
equired to make return to the De- d.
So
Sixth. as taxes paid are deductible nj
ON income, all oyerpayments are as
equired to be reported when re- to
lrned M
Seventh, those receiving income in
ON carrying on business or trade th
re entitled to deduction from that ne
lcome for ordinary as well as nee
;sary expenses actually paid til
Eighth, donations of property are w
tied at fair market value when to
aimed as deductions from income. kl
Ninth, amounts received from ac- en-
dent or health insurance are ex-
npted from tax.
Tenth, a method to compute the
lin from the sale of rights to sub
ribe to stock is outlined.
Eleventh, the members of the Tax co
Oard are to be paid $4,000 per day ed
hile attending to the business of us
c Board. an
m. /