“A Square Deal for
N.C. Cities and Towns….Revaluation Act Will Benefit Local Government Next
Year,” from the Elizabeth City Independent, April 11, 1919
More information on the tax question and the new revaluation
act are contained in a statement given this newspaper this week by A.J.
Maxwell, Insurance Commissioner. Mr. Maxwell says:--
“The State tax rate has been reduced this year to 11 2/3
cents. The average tax rate in the counties, including special taxes for various
local purposes, was 1.08 per cent in 1918. In most of the larger cities in the
State the total rate is around 3 per cent. So that about 10 per cent of the
taxes collected in the counties from property will be for the use of the State,
and less than 5 per cent of the taxes collected in the counties from property in
the cities is for the use of the State. The State is pursuing a policy of
receding from the property tax, and looks now definitely to a complete
abandonment of the property tax for its revenue, except for the public school
tax, which will be distributed back to the counties. So that the chief purpose
of the revaluation act is to furnish a more accurate, efficient and equitable
means of revenue to meet the local needs of the counties and cities of the
State. They will be the chief beneficiaries of its success.
A Square Deal for
Cities
The tax burden bears especially heavy in municipalities
where so many modern improvements have been provided at public expense. It is
in the cities especially that we hear the complaint that high tax rates are
confiscating income from property, and a very great reduction in city tax rates
is essential to the successful administration of the full value property tax
system. The revaluation should leave the total combined tax rate in the highest
taxed city in the State right close to one per cent.
There are three provisions that will become effective under
the revaluation that will be interesting particularly to the municipalities,
and that will tend to lower their rates.
Shares of stocks in banks have theretofore been distributed
to the residence of the shareholder, wherever he lived. Now all the shares of
stock in every bank will be taxed where the bank is located, against the bank,
and therefore all the stock will be liable for municipal tax, and in the
municipality where the bank is located.
Real estate and fixtures of telephone companies have been
distributed on wire mileage. All such property now located within a
municipality will be subject to the municipal tax.
Railroad depots, yards and terminal facilities have
heretofore been assessed as a part of the total property disturbed on main line
track mileage, so that with a few slight exceptions they have paid town and
city taxes only upon the basis of the length of main line mileage within the
corporate limits. Under the revaluation next year the value of all railroad
properties within the corporate limits of city or two will be subject to
municipal taxes.
No comments:
Post a Comment