Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-02-28
VH0ini0 Taxes


I believe Virginia is illegally
collecting interest on the Sec
ond half of the State income
tax. I believe 1t would be
completely illegal and prob
ably lead to q court test If
action is taken to implement
Gov. Almonds proposal to
advance payment for the en-
tire years income tax to the
FIRST half of the year. My
reasoning is supported by
quotations from q letter from
State Tax Commissioner C.
H. MorriSSett to me.
August %, 1858, is the first
month in which we owned
property and were residents
Of Virginia. Since our income
was entirely from outside
Virginia, it was our residence
in Virginia. not our income,
that made it necessary to file
o State income tax return
for the tax year 1854. AS re-
Quired by the return, we re-
ported our entire net income
for 1858. However, based on
the 1854 amendment to the
income tax law and the belief
that the tax was for the in
come year rather than the
following resident year, we
sought in 1854 to pay a tax
for only those months of 1858
in which we were residents
Of Virginia, since a tax for
the whole year would have
included almost eight months
Of taxation without repre-
sentation. After some negoti-
ations with Mr.. Ferguson, the
Fairfax County Supervisor of
Assessments. we were referred
to Mr.. Morrissett for a ruling
in our case. The. following
quotations are from Mr.. Nor
rissett's reply Of February is,
1855:
THE Virginia income tax
measured by 1888 income was
q tax for the tax year 1854
and not for the tax year 1858.
In this respect the Virginia
law differs from the income
law of other jurisdictions. Our
Virginia Supreme Court of
Appeals has passed on this
point in two cases. lander
son Bros. v. Commonwealth,
1873 Va. Is; Hunton v. Com
monwealth. 1876 Va. 1927.
These cases hold that the
Virginia income tax is q tax
for the year following the in
come year. although measured
by the income received in the
income ttaxable) year.
THE tax, as have said.
was a tax for the tax year
beginning January l. 1854,
and ending December 81, 1854,
although it was measured by
your 1858 income. You we're q
resident of Virginia through
out the tax year 1884"
Since Mr.. Morrissett's let
ter established clearly that
the tax was for the resident
year and that the previous
years income was used only
as q measuring stick for COM
putting the tax. we paid the
1854 tax in full. However.
that check was clearly marked
Income Tax payment in full
for Resident Year 1884" We
have followed the same prac-
tice in marking income tax
returns and payments ever
since. All have been accepted
by the State.
In 1857 we paid the first
half of our Income Tax for
Resident Year 1857" by May
/. 1857, and reserved pay
ment Of the second half until
September. We paid interest
under protest on the second
half OF the tax, contending
that the tax for the second
half Of the year was being
paid over three months be-
fore the end Of the period
OF residence on which the
tax was based. We asked on
what legal and equitable
basis the State could collect
interest on q tax before the
end OF the corresponding
period OF residence. How this
can be upheld in a court of
justice has never been ex-
planned to US.
When we read in The Star
Of Gov. Almonds proposal to
the Virginia General Assem-
bly, that all State income tax
should be paid by May / OF
the tax or resident year, we
were even more mystif1ed as
to how a StaA can expect
to collect a tax over eight
months before the expiration
date of the year Of residence
on which the tax is based.
~ a resident pays a Lax by
ASay Z koy The entire snsidenA