The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1935-11-28
STATE COMMISSIONER
OF REVENUE SAYSN.C
LAND TAX IS LOWESTG
Incentive To Industry To Settle
Here; Nevada Listed With
Highest Property Tax

North Carolina, although its
franchise and income taxes are
higher than those of most States Of
the nation, counters with the low
est property tax of any Of the 48
states and equalizes the advantages
for new business and industry to
locate within its borders, A. ]. Max
well, State commissioner. of reve-
nue., announced this week.
North Cardinals per capita prop
erty tax load stands at only $10.68,
placing this State lower than any
other and in sharp contrast to the
$67.15 per capita in Nevada, the
highest figure, Maxwell said.
The average per capita tax for all
the States is $40.38. Thus the aver
age paid in this respect by North
Carolinians is barely more than
one-fourth of the nations medium,
Maxwell stated.
Only four States-South Carolina,
Michigan, Alabam, and Louisiana
rank higher than North Carolina in
the corporation franchise tax CLASH
fcation. 4
Broader Base Is Used
'The North Carolina franchise
rate" Maxwell said, "is not only
near the top, but the base to which
the rate is applied is wider than
that used in most States. The most
cornmon basis used is capital stock
issued and outstanding The North
Carolina basis is the total of capt.
tai, surplus, and undivided profits
"a complete check of all corpor-
alton returns for North Carolina
shows it would require a rate of
$40 a thousand, applied to capt.
tai stock alone, to raise the same
| amount of revenue as the present
rate Of $1.75a thousand applied to
eaRttal, surps,ls md siDded
kprofitS." x
In the corporation income tax
brackets, Maxwell's figures showed
North Carolina ranking second only
to Oregon on income of $4,000, and
only three States-Oregon, WiScon-
sin, and Idaho-with higher rates
on corporation income of 81 ,000, 900.
Maxwell said Oregon's corporation
income tax rate of eight per cent is
subject to credit of the amount of
property tax paid on all personal
property up to IS per cent of the
corporation income tax, and this
undoubtedly places the net Oregon
rate below North Cardinals.
Below Oregon Rate
The North Carolina tax on each
$4,000 of taxable income is $500
against Oregon's $500. However,
Oklahoma, Pennsylvania and New
York have the same rate as North
Carolina. :.
"Our. tax levies are adequate to
meet our obligations: Appropria-
: tons are paid from current revenue
without even short-term borrowing
in anticipation of tax collections,
with no deficit to be made up by
higher tax levies in the future. Our
debt obligations are being substan-
tally reduced each year from cur
rent revenue and, to the extent of
this reduction, we are reducing the
amount of debt service obligations
in. our budget for future years.
Maxwell said. tax advantages to
encourage incorporation Of North
Carolina enterprises in, other States,
if they ever existed, have been
completely removed.
He cited the removal by the 1885
General Assembly Of the corporate
excess property tax on domestic
corporations as completely remov-
ing any disadvantage that might
have previously existed against a
corporation using the incorporation
laws Of this State"