Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1939-01-24
School Folks Concerned
About Intangible Taxes

Continued from Page One.)
ton by the State. The theory was
that the State had access to bank
books, corporation reports, etc., not
available to political subdivisions.
Every depositOr in a bank, for in
stance, received with his December
monthly statement a debit memoran-
dunn of the sum paid to the State as
the intangible tax on the average bal
ance. Under the act, a part of this
money came back to the counties and
a part to towns and cities. the dis
tribution being governed by factors
of population, taxable wealth, etc. All
OF 1t, according to the act, had to be
used for school debt service.
Trouble is that so many towns and
cities do not have any school obliga-
lions. A number of cities which &C
tually have school systems, do not
legally have them. Raleigh is a case
in point. Here the city schools are
set up as an administration unit
known as the Raleigh township
school district. Though the CITY COM.
missioners name the school board
members, and though the district and
city lines are virtually the same, the
CITY government as such has no hand
in school administration.
Each of the one hundred counties
does have an administrative school
unit and nearly all of them have
some debt service. Money deriving
to the county from the intangibles
tax must, under the law, be used for
retirement of this debt The law also
says that money deriving to cities
shall be used the same way; but if
there is no school debt the law still
says the city or town is entitled to
its pro rata share of the collections.
There's the rub.
In keeping with the requirement for
remission to cities the State Revenue
department sent to the town of Will
son about $1,700 in 1888 intangible tax
money The city needed it, could well
spend it, and did. There was no school
debt to worry about. But the county
OF Wilson does have a school debt
and needs the money to help reduce
It, The county school board: support
ed by the county commissioners,
made demand upon the town commits
sioners for the $1,70O-and got the
begun, resulting last week in Judge
Bones ruling that the town could
keep the money and use it for any
purpose desired. Although directly in
conflict with at least. two sections of
the 1887 intangibles act, the decision
is in line with the opinion twice pre-
viously expressed by the attorney
generals office upon requests from
Charlotte and Oxford. It is also in line
with the practice in most of the small
Ter towns in the State. 1t is definitely
out of line with opinion of depart
ment of education officials
1t is no secret that the association
of county commissioners and the lea
que of municipalities have joined
forces to bring about amendment of
the 1887 act so that all of the intan-
gibles tax money will go back to the
counties and cities. Both organiza-
tons have well-manned Hobbies here.
Legislators, too, are being subjected
to pressure from back home. Some
towns and cities may have gotten as
much from the intangible tax in 1893
as they had been receiving from that
source, and as much as they would
have gotten under the old plan of To-
cal assessment and collection. Manv
of them did not and all of them re-
sent the State taking a cut out of
what they had felt was purely local
tax preserve. There will be vigorous
effort made to amend the act. When
the time comes, the school forces ex-
pect to be ready to see that it is all
more clearly earmarked for schools.
Meantime, the Wilson case will al
most certainly go to the Supreme
Court. Education department officials
hope that if it does the issue will be
clearly enough drawn so that the ST.
preme Court decision will be deter
mining. If Wilson does not carry the
case on up, and the present legisla-
ture does not clarity the language of
the act, it is reasonably certain that
other court action will be instituted
TO have the matter finally determined
| The midwestern editor SAYS women