The herald and news. (Newberry S.C.) 1903-1937, December 03, 1920, Page THREE, Image 3
' ' 1,1 ""
EFFICIENCY EXPERTS |
MAKE THEIR REPORT
4
> TALK OF TAX COMMISSION AND !
REVENUES.
1 ]
... , 1
Qtfffeahagen Associates Discuss
f Aikuiutration and Contrb} of (
' Skate Gavaramaat. j ^
i ?; j ?r*v.; i
\. urmern n ^ e 11 Slid idlCd \fJL VJili" | ^
cag?, efficient engineers, accountants...
and .employment advisers, have made
tSgtir rejwrt on the organization and
administration of the government of
S#e&CaroAma and the surveys made
by these efficiency experts show some
very enlightening facts about the
t Palmetto state.The survey was be- '
gun in July at the sp'ecial request of ]
Sfehator Niels Christensen, chairman|*
of-the finance committee of the sen.
ate and ex?officio member of the budget
e&mmfcsion.
The report of the engineers is contained
in several sections, - which will (i
mde jublicrfrom day to day. '
"Taxation and'Revenue" is the first .
subject taken up by the engineers '
and they discuss fully this phase of '
the state government. Topics out- ,
in this first report are: The .
basic principles for a model system ;
of stat^ taxation; outline of tax laws
in forpe in South Carolina; admin is- j
^trative machinery for taxation and 1
assessment including the primary as- .
cessment of property, the state tax '
pojn^tfsskra and the tax board of re-1 (
'* 1 A J_.f__.fc ?.f |
VieWj; tne DUagei system -y ucxccv ui
the present tax system; operation of
the state tax commission; operation ,
of tlje tax board of review; activities
of the ass^sing officers. - The report '
otrthe above subjects follows:
.. ... '
To Provide Revenue.
. T,he fundamental purpose of state j
taxation' ift to. provide adequate revenue
for an adequate program of
atateand&sal government activity, (
4L.i ? ? ????!_
SlU TO proriac trrat revenue ao vvjuui- j (
Xy,. cetfarnly,. conveniently, flexibly ,
zimif "edwsomically as possible.
t There are certain conditions and
^lmtta&ipiB toj*hich a state tax sys- ,
item must conform, if it is effectively ,
, to attsria its ptt*pose. These condi'
Itions and limitations are different in
^different states, a For South Carolina j
jthey mAy^s^fd as follows:
1} :v,f. desirable system must not
^ooJy wrovide revenues adequate for
\ the pMseat i>ttdget. requirements of
.the sfepte, ibut it must be elastic
* *' - - ;
w ^aough to permit 01 expansion ui
vJp^meet the need^ of the
^ptorr ambitious program of state ac,
South Carolina will 110
, eOubt Undertake in the near future. /
^' 2. j&raqst have sufficient elastic\
jty-1fl!-permit ;of *?&d?rate expansion .
1 or contraction of revemie on short
} notice to correspond witn fluctuating
| financial needs of the state.
. j 3. IjSLmust be practicable from an ,
administrative standpoint. It must
j be capable of being administered by
such m*ans and agencies as the state
has at its command or can reasonably
* * - r*. _t l
be expected to provide ii> uium, uc
of su$h a character as to induce loyal
Cooperation with its provisions both
by the officials charged with its administsatiin
and by the general body
of taxpayers.
r 4. 'It must reduce to a minimum
tJjfe eyil phenomenon of double taxatfc'ku/
-v ' L
, : 6. It must take account of the
knowledge and opinion
with regard to matters of taxation,
ahd itraif conform in principle to
fitpdkrn democrafic ideas of the pur3*0$6b
61 taxation and of the relative
\ desirability of different methfccfa' of
producing revenue. It muat conform
as:-closed as is practicable to the
-best opinjons current among informed
am! educated people of what is ;
just and eqtritable.
6. 'ft mtist take into account the
ch&ra?f?f of^he population of the .
state, of the occupations and economic,
conidftion of the people, # of the
f Tfrefckh and income of different sec-*
#ons of the population and of- the
differ*at territorial divisions within
the stile, ^ ,
.-Qtt4*fil Principles.
TflC Toirowmg are generany accepted
as tile basic principles of state
taxation in the United States:
Every person having taxable' ability
should.pay some sort of a direct
]fcnrsoiial tax to ttie government under
which he is domiciled, and from
* -sr; ? v i , +
j \fhich ?e receives his personal benefits.
th# ^government confers. This
principle holds whether the individual
hfts his'wealth and receives his income
.wiihin the state or in other ,
jurisdictions.
Tahgrble property, and especially
real property and stocks and equipment
used in trade, situated within
* ?+*+? 'aYtfrnlrt tA*?d jbv the
y ?
state, because such property receives
protection and other governmental
benefits from the state, even though
the owner resides in another jurisdiction.'
Business carried on for profit in
the, state should be taxed for the
-receives from-the state
government. If such business is car-fj
ried on in the state by foreign per- 1
sons or corporations, without entailing
the use or ownership within the
state of substantial amounts of prop- <
jrty, some means of taxing such bus- j
iness in proportion to tts earnings t
ivithin the state should be devised. c
Before proceeding to a discussion c
)f the defects of the present tax sys- t
- ? ? ? t # ii 1 _
;em of South (Jaroima, ana 01 tne ae-j?
arable lines of reform, it will be well j 1
Lo give a summary outline of tax \
legislation at present in force in theu]
state. * c
Present Laws. j
The. present mAjn source of reve- ]
nue for the state S the general prop- z
srty tax. All real and personal prop- j
erty situated in the state and all z
property owned by residents of the f
state, kept or used temporarily out }
of the state, are subject to this tax. t
Money, credits, corporate securities, >
and taxable as personal property, j
Property of federal, state or local ^
bodies, and property used for reli- ,
gious and educational purposes re- j
ceive the usual -exemption from taxation.
The shares of capital stock of j
any corporation required to list its
capital and property for -taxation in
this state, wearing apparel of taxpayer
and his family, and household
sust^jiance of taxpayer and his fern- '
ily to the value of $100, are also exempt.
The state constitution requires '
that "all of the taxes upon property,
* 't-- i?:J ]
real ^nd personal, snan uv .mm u^uu
the actual value of the property taxed.
as the same shall be ascertained
by an assessment made for the purpose
of laying such tax." (Article 3,
Section 29.)* The state constitution
^lso requires the taxation of all kinds
of property at a uniform rate. (Article
*10, Section 1, and Article 8, Sec
3 1 fsv
DIOn Of HITQ LI1U ICVy Ul ail aunuai uua
of three mills on all taxable property
in the state for school purposes. 1
(Article 11, Section 6.)
Before they are authorized to op- 1
crate in South Carolina, license taxes !
of $100 per year are levied on for- j1
eign insurance con%anies, foreign 1
land investment associations, foreign
building and loan associations, , and
all otfcer foreign corporations doing
like classes of business. In addition
to the license fee, foreign insurance
wmc-t- now ae an JlHHitional
CUHIPCII&ICO MA* w.
find graduated fee, one-half of one
per cent, of the gross premium, gross
income, or gross receipts in the state
of such companies. Every domestic
corporation with the Exception of
certain public utilities is required to
pay as an annual license fee one-half
of one mill on each dollar of paid up
capital stock. Every foreign corpor-1
ation operating in the state is rt 1
quired to pay. an annual license fee
of ope-half of one mill on each dollar j
A-f value o# the oroDert.Y of such!
A ? ? - ? " ? ~ j
corporation 'used withfti the state in
the conduct of the business of the
corporation.
Other- Minor , Sources.
There are several other minor
sources of state revenue, such as license
taxes on hunting and fishing
and licenses for emigarnt ^ents,
hawkers, and peddlers. .There are at
present no inheritance or income
taxes. Until as recently as 1918,
there were levied in South Carolina I
J l-J nn innnmo? T n TP-!
giiiuumcu v/ii iiivvmvwi ? ^ .
cent years the rates ran from a min- j
imum of one per cent, on incomes j
over $2,500 and up to $5,000 to :i j
maximum of three per cent, on in-1
comes of $15,000 and Nover. Al-1
though this tax has recently been re-1
pealed, some attention -will be paid to !
it lateV, as its history throws some
light on the question of sfetejncome
taxes.
4?va? liefoil ilinvn inplllflp nil I
X lie OdAt-O uotvu uvv< V -? |
the present sotirces of tax revenue of j
the sttae which are of any impor-j
tance. The local governments obtain
t^jcir revenue from a variety of
sources, but the main source o? revenue
for them as for the state treasurry,
is the generaPproperty tax. In
addition to the tax of three mills on
all .property required by the state
constitution for school purposes, the
local bodies add to the state tax rate
on property additions for local pur"""""
'"Viinli Kvinn> fho +nfa1 nrnntfrtv
UVOCO, niliVIl VliUg kl>v vvimt ?? ~J j
tax rate to as high as 6 pgr cent, for
some local districts and .to an average
of about 4 per cetit. for the entire
state. Additional sources of tax
revenue for the local bodies are: the
annual capitation or poll tax provided
by the state constitution for
school purposes,rof one dollar on each
male citizen between the ages of 21
and 60, with certain minor exceptions;-the
annual tax of 50 cents on
aanln Anrr ?vr?\7!rlcrl Kv H Rtflf.P statute.
v^avu yi. v t iuvu vj - ? ? 7
also for school purposes; and the-capitation
tax for road purposes, payable
in three clays' labor, but commutable
into money payments. The lofal
'bodies are authorized to impose occupational
license taxes on hawkers
and peddlers, pawnbrokers, circuses,
and traveling shows. The proceeds
of license taxes for hunting and
fifthinc -are eouallv divided between
the state and the county treasuries.
The municipalities are authorized to
levy municipal license taxes on theatrical
shows, and on persons and cori
>orations doing business in their;
imits.
Assessment Conditions.
The primary assessment of prop-;
irty: The duties connected with the
irimary assessment of property fori
;axation are distributed among the :
:ounty auditors, the township boards j
>f assessors for cities and towns, and ;
:ounty boards of equalization. The :
ivailable data indicate that all or;
nost of these officials are appointed I
>y the governor, but that there is j
vH-.Ia statntnrv nrnvisinn for their !
r y !
iischarge or penalizatibn when they;
'ail to perform their duties efficient-!
y or faithfully. They are remuner- j
ited on a very modest basis of pay }
?er diem for the days in which they j
ire actually engaged in the work of
tssessment, and the total yearly remirieration
is in most cases limited
:o payment for three or five days as j
i maximum. It is the duty of tax>ayers
to make returns on their
property to these officials, every four
fears for real property, and annualy
fof personal property.
The state tax commission, estabicVtorl
in 1915. to the now
jrs formerly held by the state board
)f equalization and the state board
)f assessors. The commission con- ;
5istg*of three members appointed by
;he governor, with the advice and
consent of the senate, for terms of
six years. The persons to be appointed
as mem'bers of the tax commission
are to be "such as are known
to possess knowledge of the subject
:>f taxation and skill in matters pertaining
thereto."' The chairman revives
an annual salary of $2,500,
and is required to give his full time I
to the work of the commission. The i
ather two members receive a peri
diem of $5 while engaged in thej
work of the commission. The duties'
of the commission include general!
supervision over the administration
of the assessment and tax laws of the
state, over all boards of assessors
and equalization, and all other as-'
sessing officers, the power to order
reassessment of real or personal
property in any assessment district,
to secure the prosecution of delinquent
officials, to assess the property
unu IlilHCinse U1 CCjLMIH jmunt. wn?i-j
ty corporations, and to secure equal i-|
zation of assessments made by local i
officials. Before the establishment j
of the tax commission, appeals from'
decisions of county boards of equalization
went to the comptroller gen-j
eral. The act creating the t^x commission
did not make clcar whether
or not such appeals were in future
to be made to the tax commission.**'
Board of Review.
The state tax 'board of review, established
in 3 913, consists of a chairman
and six other mergers, appointed
by the governor, one from each
congressional district, ty and with
the -^cfvice of the senate. The term
of office of the chairman is four
. AM.UA 4-Un A4-V?ai?
^CCllS; CU1U U1 1/ilC UW1V1 tllvmvv.'U V. u
terminal $ith that of the governor
appointing them. The compensation
of the members is $5 per diem-and
mileage, the per diem not to exceed
30"days in any one year; with the
provision, however, that the chairman
shall not be limited to 30 days'
service in. any one year, and that he
shall receive actual expenses > while
engaged in the performance of his
duties. Appeals from the action of
the state tax commission may be
taken to the tax board of review, and
decisions of the state tax.?cpmmission
may be reversed or modified by
the vote of a majority of the whole
board of review, i. e. by a minimum
of four votes.
At the 'beginning of each fiscal
year the state treasury is practically
depleted. Then the general assembly
meets and provides- the annual
IWEAK, f
Mr. Enoch Moore, of Oconee, J
was nervous, and my limbs seeme(
some such feeling, I can hardl]
"tipmbles." I was sallow, had a d
at-night. I read of Ziron and thoug
the same for me. 1 knew I could at
ImSJ KmI 1
The Scientif
and very shortly I felt better, ate ai
feelingpgradually left me. It was a
seemed to hit the spot."
If Mr. Moore had not been ben
took, he could have gotten his mor
jjm druggists everywhere on a moneySW
Insist upon Ziron Iron Tonic.
1/ ing else as good, so refuse imitatk
El Ask your druggist for Ziron.
%
appropriations, which arc based tn1' <
the estimates of the comptroller gen- f
eral gathered from the tax returns J
of the previous year. The state 1
finance committee, consisting of the ; \
governor, the state treasurer ami the, t
comptroller general, is empowered toj
borrow such money from time to time
as may be necessary to defray |
the current expenses of the state jv
government .uptil sufficient revenues';
" ~ /\/l rPUn nrAnnvf \r fVftC 'I
CcAIl UU CUIlUt ICU* X JJI uj iu.WO
are not due until the last quarter of1
the fiscal year, and usually 80 perj
cent, of this tax revenue is not collected
until the next fiscal year. In
consequence the revenue of the state
is normally received aibout one year J
after the expenditures budgeted!
against such revenue have been made;
and the interest payments on the!
temporary loans made in anticipation j
of revenue are an important' item in
the state expenditures.
A Kriof /-mf-lino n'f t.Vio main "fen-1
viiv* ?* " " I
tures of the tax legislation of South
Carolina has been given above, but
there is often a considerable degree
of divergence between the letter and
spirit of legislation and the characteristics
it develops in actual operation.
In the following sections, the
South Carolina tax system, as it opperates,
will be compared with the
basic principles of taxation brought
out above.
Operation of System.
The establishment ot the state tax
commission, with wide powers of supervision
and administration of taxation
in South Carolina, was a distinct
advance in the history of taxation
in the state. The last 25 years
have been marked by a growing realization
of the hopeless inefficiency
and inequality which result from decentralized
tax systems, and of the j
improvement which follows upon a j
centralized administration of taxation,
and especially of assessment of |
property for taxation, even though
no change is made in the tax laws i
themselves. The law creating the
South Carolina tax commission was
an excellent piece of legislation for
which the state is entitled to credit,
iviinAi- plianiroe tliprpin nrp
UUU UlliV ilUUVl ?. ne-eessary
to place jit; beyond serious
criticism.
Section 1 of tnu? iaw states that
tlyj commission is .created "in order
effectively to carry.. into execution
'the equitable assessment of propeily
for taxation." Section 8, subsection
! Instates that it shall have the power!
and duty to exttrci&e' "general super
! vision over the administration the ,j
? / j v I
j assessment ana tax.- laws 01 me
j stale." This latter section indicates .
; by these words th<it it was the iri-'i
j tention of the legislature in creating j
| the tax commission that it- should qx- j
, ercise supervision over all the tax !
; laws and not only pver the property j
tax. It is desirable that the tin;!
: commission should ; exercise to the
fufl such power of general super-;
.vision, that it shall not confine its1,
? - - I
: activities to the administration 01 uie
! property tax. The other chief critij
cisms to which the tax commission as
j at present constituted seems open,
| are: its inadequate powers of regulation,
discharge, and penalization of
j local assessing officials; the failure
(of the act creating it explicity to
J confer upon the commission the right
to hear appeals from county boards
of assessment; the failure to require
of all the members of the commission
sole attention to the work of
the commission and to make .corre?
:_?: ?j?? 1
sponamg appruprrauuiia iui aaiaiy,
j the inadequate appropriations for
i salaries and' clerical help, and the
failure to authorize a state survey
of real property under its supervision.
Criticism of the relationship
board of review is made below.
"All available data strongly in -
#
IERV0US j|
- r% i-11- f._? 7:-?? (IT
5. I&U& HUW JL.IIVH UCI^U IIUU. 1 \g| |
i to ache as though I was scared?or
7 describe it. I would have weak (H
raggy, worn feelings didn't rest welt
ht if it had helped others it might do HI
least try it. I began using W
i - ?? 01
lc iron jluiuc m
id slept more, and the weak, nervous ^
tonic?a builder?I needed, and Ziron S
lefited by the first botile of Ziron he |g| j
ley back, for Ziron is sold by reliable Jlj i
back guarantee. sjJ] i
When you need Ziroti. there's noth>ns
and substitutes. . \H !
Accept no substitutes. ZJ.3 gg
%
( :
licatcs 11:;11 if due allowance is made '
. ?
or a number of unfavorable factors j
n the situation, the lax commission |
ias rendered very capable and very
aluable services at an unusually low j
ost to the stale:
? I
Work of Few Boards.
Operation* of the tax board of rc-i
I
Condei
The Coi
I
I
o
At Close of E
I
Loans and Investme
: % Overdrafts
Cash on Hand and ii
/
Capital
Qiirnlnc anrl Profits.
Ik^UA |#AVtW ? ? ?
Bills payable
Deposits
\
4 :
Prosperity?civi
supply of food. Wit
ment, progress, and
loss. We are confro
necessary that we si
the raising cf adequ
riaily our acreage pi
er dividends m CAS
' # *
"Tke Bank
JNO. M. KINARD,
Preside)
R. H. WRIGHT,
Asst. Cas
j}
view: Appeals from dec Hons of t.bt- .
state lax commission. according to i
the South Carolina act of 1913, go to ;
an independent tax board of review. (
This system has no counterpart in j
the legislation of any other state, the;
most common arrangement being;
such thai appeals are passed upon by i
ised Staten
nmer cia
f Newberry, S. (
business Noveml
?
RESOURCES.
nts
a Banks
m '
LIABILITIES.
i
? ? %
lization itself?depends
h sufficient food comes a
success; without it, hai
nted with a Condition wh
liould devote more of our
ate food .supplies, and to
anted in cotton. No other
H, CONTENTMENT anc
"ommercial
that always treats
tit. Vice i
FLO"
hier.
? H i , ; , ....
r Let's set
thte righl
No man ever smok<
better cigarette tha
.. > i
You'll find Camels une
any cigarette in the w<
?- f - : n t -
price Decause oameu
every feature that ct
. cigarette supreme!
Camels expert blend
Turkish and choice
> tobaccoa?puts Camels i:
themselves. Their si
will appeal to you, <
you to smoke liberally \
ing your taste!
i - : .
I Camels leave no unple
S retty aftertaste nor u
I cigaretty odor!
I You'll prefer Camels ble
1 kind of tobacco smoke
Camel5 xre *ofd everywhere in scier
/Jgj packa&a of 20 ci&arettes; or ten ,
B cigarettes) in n glansine-paper-cover
etronftty recommend tht? carton to
Mm* ofiic? tuppJy or r?h*n you trarol.
R. J. Reynolds Tobacc
Winston-Salem, N. C
wirwiBi
w
the tax commission':: themselves. It
is oj>en to serious criticism, bccause
it must Operate to lessen 'the pres#
*
titfe of the tax commission, since it
contains the seed of friction between
the two bodies, and b.ecause it creates
(Continued on Page 7.)~
' ?
7^1
lent ot
1 Bank
>er 15, 1920
- * ' . ' * -' 4 '
$1,249,736.24
7,514.93
140',992.09
$1,398,243.26
* . ;
$ 50,000.00
135,164.32,
50,000.00
1,163,078.94*
' ; v- ' v
$1,398,243.26
upon an adequate ,
Dntentment, devejoprdshfps
and serious
er^ it is absolutely
time and thought to
reduce very mateplan
will pay greaV
i CONFIDENCE.
i'i i r- J 1
?
' \i ' - i
you right." f
J.Y.McFALL, C
Pres. and CasKier. . .
5fD BRADLEY, *
Asst. Cashier.
, : "...
tie \
t now!
n Camel! /Ijjj jy| . -
equalled by 1|b I
>rld at any v
tn make a 'BSBsUtt
Domestic i
nopthness ffi|l fj J
md oermit Si 111; I
without tir- l{
K|
asant ciga- HHHHK'
ind to either jHr
)tifrcaHv | I J 11 ,
packages (200 j } | } f , l
ed carton, wo II11 i | 1 I.MlbMI I
r^the homt or UjflHHI 1
I^BBGflG HNI