Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1938-02-08
Nev State Tax Levied On
htangibles Is Explained
Important Change in Methods and Radical Change IN
Rates Effective This Yea in State AK Returns;
Classification Is M ade by the State

! United States, the State of North Car
Dina, of counties, municipalities, or
,ther political subdivisions OF this
State are not taxable. Payment OF
such evidences of debt are not en-
| forceable in the courts without pay
rnent of the tax.
Every person, firm, or corporation
acting in a fiduciary capacity is re-
quired to report and pay the tax on
all intangibles held for the benefit Of
residents of this State.
No tax is levied on the cash sur
render value of life insurance policies,
but a tax of twenty-five cents on
every hundred dollars of value as of
December 81 is levied on all sums left
on deposit with insurance companies
by a resident of this State, the prin-
cipal of which is subject to withdraw
al at the option of party or parties en-
titled to receive it after stipulated
notice.
A tax of thirty cents per one hun
dred dollars of fair market value on
December 81 in excess of $500 is levied
on shares of stock held by residents
of this $3.50 - foreign corporations
that are not domesticated and paying
taxes in this State. Shares of stock in
every domestic corporation are ex-
empt by reason of tax payments made
in this State by the corporation, and
shares of stock in all foreign corpor-
ations that are domesticated taxpay-
ers in this State are exempt from tax.
This exemption covers a long list of
foreign corporations that are donaeS-
ticated taxpayers in this State. A COM
plete list of such foreign corporations
will be furnished on application by the
Department of Revenue. Shares of
stock in all other foreign corporations
owned by residents of this State are
taxable at the rate of thirty cents per
hundred dollars. If there is indebted
ness incurred directly for the pur-
chase of the stocks, and for which
stock is pledged as collateral, such
indebtedness may be deducted from
fair market value of the stock. Mar
ginal accounts with stockholders are
therefore, taxable on the basis Of the
net equity of the taxpayer. If stocks
are carried in a brokers' account
some of which arc taxable and some
exempt, indebtedness may be proper
tiOnately prorated.
Nonresidents of the State are liable
for tax under these schedules only il
engaged in business in this State and
to the extent that intangibles are re-
lated to the business carried on in
this State. Foreign corporations en-
gagged in business i'll the State are liza
lie for return of such intangibles
held by them related to the business
carried on in this State.
Failure to make report and pay the
tax levied on March Is will subject
any resident and nonresident of the
State liable for such tax to a penalty
of one hundred per cent of the amount
of the tax due and payable None of
the intangible taxes apply to religious
educational charitable, or benevolent
organizations not conducted for pro
fit, nor to life insurance companies
Except Sections r0D paying gross
premiums tax to this State, nor to
building and loan associations Except
Section 704) paying tax on shares of
stock as required by Section 1873, nor
to evidences of debt held by CONNER
cial, industrial, or savings banks re-
presents investment of funds held on
deposit.
Report blanks (From H.1) 70 be US
ed in making return of intangible
taxes have been distributed 20 more
than 100000 taxpayers; additional
forms and further information may be
secured from the intangible tax di-
vision, Department Of Revenue, Ra-
leigh, North Carolina, or from any
field deputy of the departments.
All intangible taxes are payable not
later than March Is to the Depart
ment of Revenue, and one-half Of the
proceeds of these taxes is retained by
the State and the other half distribut-
ed to the counties and cities Of the
State. The act represents an effort TO
apply rates of tax on intangible per
sonal property that will not be oppres-
sive to any taxpayer, and the Depart
ment Of Revenue trusts that it may
have the whole-hearted support and
cooperation of the people of the State
in making a success of this extremely
moderate ta-- Jaw.
q X/N r AnAREnC AYEEn