Evening star., 1937-03-13
Low REALTY TAX
HELD ADVISABLE.
14-Year Movement for More
Equitable Condition
Outlined.

Low general property taxes are an
inducement for industry so important
that they outweigh any question of
corporate or franchise taxes, A. J.
Maxwell, commissioner of revenue
for North Carolina, holds in a PAM
phlet Just issued by the State giving
detailed study of its l4-year move
ment for more equitable tax conditions
for real estate. The movement has as
Its central plan the shifting of the two
heaviest items of local governmental
cost from the localities to the State,
30 that they might draw from the
wider tax base which is open to the
State government, the general plan
which the National Association OF
Real Estate Boards has for years ad-
vocated for all States
North Carolina has taken from the
localities and placed upon the State
the full cost of the public schools for
an eight-month term and the full cost
OF all public roads. 1t has done this
consistently as real estate tax relief,
claims the lowest general property tax
per capita of any State and admits
almost the highest franchise tax and
corporation income tax Commissioner
Maxwell says:
1t seems a fair inference that
whatever advantage business and in
dustry may have by reason OF lower
rates on franchise and income in other
States is fairly equalized by our low
tax on property, which is generally
the most important part OF the total
tax bill"
He tells the States story this way:
As compiled by the United States
Census Department for all States, the
composite tax levy for all purposes per
capita Is shown for North Carolina as
el0.68. The weighted average for all
States Is shown as $4038 These fig
ures represent the total of all property
taxes levied in each State, including
local taxes. The very moderate per
capita property tax load for North
Carolina Is in the main due to the fact
that North Carolina has made sub
stantially greater progress than any
other American State in developing
revenue from other sources than prop
erty tax and in assuming as a State
responsibility governmental costs for
merly borne by local taxes on prop
erty.
We have been working toward this
objective for many years. Fourteen
years ago We substituted the income
tax for the tax formerly levied on
property for operating revenues for the
6tate government. After the success
OF this experiment the State gradually
began the absorption of expenses of
the public schools, and in 1888 went all
the way in absorbing all the operating
expense of the whole public school
system for uniform Statewide eight
month term Cncluding a system of
high schools in reach of every child in
the State). In 1881 the State as
sumed full responsibility for all public
roads, including local roads formerly
maintained by counties with tax levy
on property.
The school cost assumed includes
State operation of the most compre-
henstve system of free transportation
developed in any State, and we are
now beginning system of State-Sup-
piled school books on a cost rental
basis.
Another important fact has been
the large reduction in the composite
total of all taxes levied, or reduction
In total amount of public expenses.
This total of State and local taxes has
been reduced from $102, ,265 in
ls29-30 to S78732, ,9se in 1884"