Henderson daily dispatch., 1941-09-12
S~~iie~ businesses.

leads t the discovery that the iran
chise taxes on corporations, over
which so much ado was made and
which led t. the big conference &C
count for scarcely more than ten per
cen of ali state taxes.
Thus it is discovered that of the
S232, 3,230.9 5 already mentioned "a
the total state tax collections f the
past fiscal years, the franchise tax
yielded only $24,674,202.5 So OF tn,
general fund collections, to which
should be added SPOOL, O34.42 in
bus and franchise taxes collected
for the motor vehicle division. CIV
ing a grand total OF $40, 1876 36.Y4 OF
slightly more than eleven per cent O.
the grand total state collections.
TO give a simple and understands
bic illustration of what the total OF
sales and gasoline taxes mean, II
can be said that if the population OF
the state ove the last three years
be assumed as $500, 900 Nhe official
1910 census figures being only Slight
ly above that) the l7,l90,5 1921
collections NEAR that every man,
woman and child has averaged BAY
ing to the State in sales and gaso
line taxes more than S33 in the three
years, or $ll a year each. And of
course when the population figure is
reduced to terms of those who actual
ly pay taxes this average rises ire
mendously.
Putting it another way, receipts
from the sales and gasoline taxes
paid by the flivver drivers was
about four and a half times as great
as from all franchise taxes on cor
%porations.
It is an easily discovered fact tina,
there has been no increase, and n
serious effort to increase franchise or
other corporation taxes in the last six
years. The last such effort was in
the 1885 legislature and it was not
only defeated but opponents of high
err corporation levies actually sue
cceded in striking from the then
existing revenue bill a section under
which G rporate values were subject
I'd each year to scrutiny by a state
board, with a result that annually
valuations were written up by hun
1reds of thousands.
For some specific data on tax col
l%ections during the last three 1is,al
years, total receipts from sales and
gasoline taxes as compared with total
collections from all sources will be
first taken up
For 1904 t tai collections were
S87 392,256.70 of which the sales
plus gasoline yield was $43,639,
823.l0, or just a shade under halt
the total.
For l939-4O total collections ran
$4,000, 84l .68, with sales and ga
taxes accounting for S38, III 1903. 95,
or just a shade above so per cent.
For l938-39 the total was S68,946,-
1927, with sales and gas taxes sup
plying $685. 80.16 or slightly more
than 81 per cent.
Thus it is apparent that the proper
tlonate part from sales and gasoline
taxes has declined very slowly, drop
ping less than 2 per cen over the
three year period. On examination o.!
the various tax items it is easy to sec
that the steady increase in income
tax collections and a varying total
for inheritance tax collections ha
accounted for this almost negligible
change in percentage.
1t is still permissible to say that
the sales and gas line levies provide
malt the states revenue.
Now the sales tax with relation
to all general fund coll. ctions vii.
De studied. Here the percentage has
dropped about one-half of | per cen,
over the stretch.
Figures for l940-4l showed total
general fund SAG, ,65l.7l, sales tax
S~l4,244,069.71 Or 30.5 per cent. For
l939-40 the corresponding figure
were $40, 147, 05l oil, 512,206, O76.l2
and 80 per cent; and for l93S-39
they were s35,335,43447, sl0,997,-
883.87 and 81 per cent.
The relation Of gasoline taxes t.
total motor vehicle revenue. has been
practically as constant as that Of sale.
to. general fund receipts, though in
this case the percentage is 70, not 80
Here are the data in detail: 1910.
Al, total $40, 778, 604 80, gas 1906,
743.39, percentage y; l939-40, tota
$35, 1857, 790, gas SIS, 1857, 790.67, per
centage 70; l939-39, total $33,6lO.
698.lQ. gas S24,440,9 96.29 percen-
tage 1875.
Now for the figures on franchise
taxes with relation to total collec
ti,ns. In l940-4l total was $87, 1892,
256.70 of which franchise (includni.
bus and franchise) amounted to 50,
479,334.T or II per cent; 1894
total was $4,000, BAL SO, with So,
1872, $780, % in franchise levies, or H.;
per cent; 1889 the total reached
500, 946, 1927. with franchise collec
tons of $8,463,4l9.99 or 1872 pc
cent.
Thus it is apparent that the pro
portion OF franchise taxes to all ia,
receipts has declined as rapidly a
has the percentage for sales and gaso