The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-26
Refunding Act
Raises Wrath
OF Taxpayers
Students of Law See State
wide Defaults as Result
of Measure
Rv ]. c. BASKERVILLE

by }. 1. BASAEENl ILL
RALEIGH. April 26.-Not only
is Section 9 Of the tax certificate
refunding act (Senate Bill 1907
unfair to all those taxpayers who
paw their taxes promptly, but if
it is not removed from the act
it will be likely to cause every
county, city and town in the state
to default on their bonds and
notes. according to those who
have been studying the question.
In addition, it will be necessary
for the governing bodies of these
subdivisions to increase the tax
rates at least one-third to make
up for the loss of revenue that
will result, it is maintained.
Section 9 Of this act stipulates
that not only may those owing
back taxes from 1927 to 1882 pay
these with al interest and penal
ties removed, if paid within the
next five years, but that if these
back taxes are paid before AprI
i, 1884, they may also deduct 10
per cent Of the principal. Thus II
a man owes $500 taxes for 1881,
he NAV now wait until April /,
1884 and pay $3.50 in full settle
ment for these taxes, while his
neighbor who paid his taxes when
they were due, had to pay the en-
tire $500. If the neighbor had to
borrow the money to pay these
taxes-as many persons have done
he has also had to pay The III
terest ON this $500.
SIN other words, the effect Of
this provision is that it penalties
the Is per cent Of the public spir-
itedy patriotic taxpayers Of the
state who pay their taxes when
thew fall due, even if they have to
borrow the money to pay them,
but rewards the taxpayers who
either cannot or will not pay their
taxes by giving them a reduction
Of 10 per cent" said John l..
Skinner. secretary-treaSurer OF
the North Carolina Association OF
County Commissioners. a member
of the Warren county board Of
county commissioners and one or
the first to see the dangers in the
bill. Virtually all the county COM
missioners in the state are now
opposed to Section 9 and in favor
of the bill introduced recently by
Senator Bland of Wayne county
to amend the tax certificate law
bv striking out the 10 per cent
rebate provision in Section 9.
This amendatory bill by Sem
ator Bland is now before Senate
judiciary committee No. l, after
having been discussed for several
DAYS in the senate. Secretary
Skinner and a number Of county
commissioners appeared before
this committee yesterday morning
urging it to report the bill out
favorably so that it could be en-
acted as soon as possible. There
is no little chance for this bill to
be taken up in the senate until
after it completes consideration
of the revenue bill, however,
The mortgage companies, land
banks. railroads and large land
owners who could have paid their
taxes but who have refused to,
are the ones that will profit most
from Section 9, Skinner told the
committee yesterday. For they
can continue to refuse to pay any
of their back taxes from 1927
through 1882, until April 1, 1884
and then get a discount of 10 per
cent on the total amount due, as
well as the remission of all inter-
est and penalties.
as it fair to the hundreds Of
thousands of taxpayers who have
paid their taxes in full for the
past five years-many of whom
have had to borrow the money
with which to pay them-and then
give a discount Of from Is to 20
per cent to the big landowners,
mortgage companies, land banks
and corporations that have re-
fused to pay their taxes?" Skin
ner asked the committee. "In
fairness to the thousands Of peo-