Evening star., 1933-01-06
SALES TAX YIELD
AIDS MISSISSIPPI
Gov. Conner Declares That
1t Has Restored States
Credit.

by Inc Associated FreSs.
JACKSON, Miss, January 6.-The
Mississippi sales tax has produced more
money than its advocates anticipated
and Gov. Mike Conner says it has
restored the States credit and paved
the way for eventual reduction in the
ad valorem tax"
The sales taxes produced S1,536,818.58
IN 1882, some $236,000 more than the
Legislatures estimated yield of ST.
100000
The State now is operating under its
second sales tax act--an emergency rev.
enue measure passed last year at in
siStence of Gov. Conner, who has ad-
vocated levy on sales since he first
entered the Governors mansion and
found his State facing deficit CT
$l0,000,000
The emergency measure imposes q
basic rate of 2 per cent on general
retail sales and operated only eight
months last year. The original sales
per cent rate was in force during the
first four months of the year and was
superseded by the present act, which
is in force until June 80, 1884.
Rates Vary.
Wholesalers, public utilities, manu-
facturers and automotive groups pay at
varying LdlCo 1lOIlI O11G-GlSiblI
OF per cent to 212 per cent under the
measure now effective. The levy is
known generally as the 2 per cent sales
tax, although it bears a half-dozen
different rates. Enterprises falling
within the per cent rate totaled 88
per cent of the tax collected during
the first eight months of its operation
The per cent levy became effective
last May l, replacing the old 1880 sales
tax act which carried straight one
fourth of l per cent rate.
Concerns whose tax aggregates as
much as $40 a month are required to
file monthly returns and yearly re-
turn Businesses whose tax does not
aggregate as much as $40 a month,
but more than that amount during a
e0-day period, must file quarterly re-
turns. All concerns that do not pay as
much as $40 quarter file only annual
returns. Businesses are allowed $1,000
gross sales exemption.
These collection figures do not include
December collections, which will be re-
ceived by the tax commission this
During the six-month period from
May l to November /, tax was paid on
sales totaling more than $1o4,000,000.
81 Cents Per Capita.
The Tax Commission says the average
per capita yield of the levy was 97
cents for the entire State.
Since May !, cost of collecting the tax
has averaged 80 cents on each dollar.
Tax Commission members, however, say
they believe this administrative cost
will be reduced when initial costs of
setting up administrative machinery
are eliminated
Thus far 1884 individuals and con-
Germs have filed sales tax returns rep
resenting 12,146 business activities. The
tax was designed to reach approximately
1900 business firms and several hun
dred professional men,
A survey by the commission shows
IetallerS paid 30 per cent of the total
yield on indicated sales aggregating only
46 per cent of the total.
Gov. Conner went into Office with a
tales tax program, and soon after his
inauguration began pushing it.
Opposition Strenuous.
Opposition was strenuous, but the old
one fourth Of per cent measure even
tually was adopted. M!ssissippi's finances
then, Gov. Conner says, were in serious
condition.
Administrative machinery for enforc-
ing the measure was set up under su-
pervision of the Tax Commission, of
which Alf Stone is chairman.
Mr.. Stone says he feels we have
made decided progress in supplying the
general public with fundamental un-
derstanding of the sales tax and that
this has proved highly influential in,
breaking down opposition to the tax"
Gov. Conner has expressed complete
satisfaction with the first eight months
operation of the levy.
"The sales tax has produced even
greater revenues than It's most ardent
supporters had hoped for" he said.
'Too, 1t has operated without serving
as a hardship on any group or section.
1t has restored the States credit, lent
stability to its institutions, has paved
he way for eventual reduction in the ad
valorem tax and provides us with a
means Of reducing cur public debt"