Henderson daily dispatch., 1940-06-13
Supreme Court Decision
Worth Half Million Yearly
To Taxing Units
Continued From Page Onc)

continued From Page Onc)
Cmpt from taxation are almost COM
plc,cly lacking, but the League did
gather some in 1887 which Indicate
in 4 general way that the $25,O00,-
600 is about right.
Statistics from Durham, Franklin,
Guilford. New Hanover, Wake and
PaSquOtank yielded best estimates of
So. 1856 6O4 in valuations, which would
have yielded annual taxes of nearly
$4,000. With that aS 4 basis of COM
pariSun. both S25,000,000 valuation
and S5OO.000 annual tax yield appear
not to be exaggerated.
The figures presented in 1887
showed things like this:
CD Elizabeth City had taX-cXcmpt
property valued at 100000, with no
data available in the MUM Leagues
files showing how much this meant
in the way Of taxes.
CO In the city of Durham such
property WAS valued at $55l,2 49,
which at the city'S rate of $l.75 would
have yielded $3.50 annually in taxes,
(3) In the town of LOuiSburg there
VAS exempt property TO value Of
$4,000. while in Franklin county,
outside LnuiSburg the figure was
S2O.7O5. Resultant tax loss was ST.
U79 to the town and $l,78l to the
county.
(N In Guiltord there was $780,
765 worth of exempt property in the
city of Greensboro and $255,265 in
High Point. Cntaling 4 tax loss of
Sll.244 10 Greensboro, So $50 to High
Point and $8,728 TO the county o.
Guiliord.
60 In New Hanover there was
total of S249.800 in the city of Will
mington, which meant tax loss of
S3.4y1 to the city and Sl.784 TO the
county.
co In Wake county there was ST.
$50 20 in the city of Raleigh with
resultant tax loss of Sl6,ll5 to the
city and $4,000 TO the county. AS OF
today the Wake county tax super
visor estimates that approximately
s. GOO. 600 in valuations will be adj
ded To the tax books as a result Of
the Supreme court decision.
The situation in these cities and
counties is typical of many others
throughout the state, in the opinion
OF Pau lealcy, executive secretary
of the League of municipalities.
In valuation of the tax worth to |
the cities and counties of the court |
decision. no account has yet been
taken OF the fact that there is Il
strong possibility each county can
collect as 4 sort of "Wind-fall'' back |!
taxes ON the property for the last
five years.
In this respect the court decision |
route 10 taxation is financially much I,
better for the local units than would
have been Il legislative striking out, |
or Qualification. of the existing pro-
visions of the revenue act, for in the
latter case it is certain that there /,
would have been no retroactive fca-
turc permitted the levying of back
taxes.
But the court held not that in the |
future there shall be no such eX-
cmptiOnS. but that in the past there
never has been any such exemption
legally. In other words, there has
ALWAYS been ample law for taxing |
the property and failure to do so
has been due to the failure Of au-
thoriticS to take advantage of the law.
There is a strong current of OPP |
inion. too. that the cities and cOln-
ties won this tax victory in the only |
way possible 1t is matter Of his
tory that the Griffin bill Of 1885 was
overwhelmingly beaten: that in 1887
the Muni League, after laying the
grounds for new efforts, realized that
it would be hopeless to try and more
or less dropped the matter. In 1899 !
there was hardly more than pro f
lorma attempt to wipe out the en-
cmptiOn feature.
Another factor which indicated
virtually no hope whatsoever for the |
next four years was nomination Of |
J. NJ. Brought0n for governor. The I,
next chief executive, us Il trustee of
Wake Forest college, was leader |
in the lobbying activities which made
changes impossible in the last three ,
LEGISLATURES. With him as governor, .
CXCrting the great power Of his Of ,
flee. the counties and cities would
have been completely out of luck. |
Wake Forest IS Il large owner of re-
venue producing property which has
heretofore been escaping taxation.
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