| Show new fields of taxation in addition to those already borne by the taxpayers of utah are recommended by the state board of equalization in a report submitted the other day to the revision commission embodying the equalization boards views on tax reform it would make no change on taxation of real or personal property as now taxed and it took the stand that this will continue to be the basis of yielding the larger part of the public revenues it advocated a business corporation tax in the form of an excise or franchise tax on all transactions done in the state and a personal income tax the report pointed out that at present the public taxing units collect about from the property and almost from the gas excise and cigarette tax corporation licenses inheritance taxes auto licenses insurance and bus transportation taxes at present the burden Is fairly equally borne in this board s opinion despite the fact that inequalities do exist A tax of a dollar on each hundred of full cash value would be a fair property tax but the board estimates that utah property bears a burden of about two dollars per hundred of full cash value this compares favorably with other states which must rely on general property almost entirely reviews bank tax considerable space is devoted in the report to reviewing the present status of the bank tax situation and after making this analysis the board favors following the lead of new york california massachusetts wisconsin and oregon and assess them under the national bank act plan of assessing the shares on a basis of their income earnings this would be designed to replace the present system under which valuation of such institutions is determined by combining the capital surplus and undivided profits this latter plan is now being resisted and litigation Is threatened to have this set aside on the grounds that other moneyed capital Is not assessed on the same basis plan for the tax reform cabled ahead by the various states have been in accordance with the model plan that has been laid down by the national tax association this to which attention is called by the board sets forth three basic principles first A tangible property tax upon the theory that all property should pay for the protection afforded to it and to the jurisdiction wherein it Is located 7 second that any business carried on for profit should pay tax for the benefit it receives whether such business is carried on by individuals partnerships ner ships or corporations and third every person having tangible ability should pay a direct personal tax based upon his income plans are sound soundness of the three plans is becoming more ap as time passes according to the views of the utah board and in accordance with these principles they advocate this plan first A tax on tangible property objectively that Is upon property regardless gard less of where it Is located or by whom it Is owned second that for the privilege of doing business within the state of utah a corporation franchise tax of 6 per cent based on entire net income will be imposed upon banks mercantile manufacturing associations investment companies and all business corporations in fact upon any and all corporations including public utilities and insurance companies third tha an offset equal to 89 per cent of the tax be given for taxes j upon personal property provided the rate of tax be applied to tha offset and added to the tax provided further that the tax in any event shall be a minimum of twenty five dollars the present corporation license tax hall be abolished I 1 fourth that a graduated personal income tax be enacted taxing person al incomes from every source at rates from 1 to 5 per cent and with exema I 1 alons for single people of 1000 for married people 2000 and for dependent children under 18 years of age with a minimum payment of I 1 five dollars from all persons within the income paying class fifth that as tar as possible the federal law be followed in computing the franchise and income taxes that exceptions be made so as to include as income dividends from domestic and foreign corporations and that loss deduction be confined to the current year that the usual definitions as to income be applied to mutual building and loan associations and the usual exemptions be given to nonprofit non profit and to charitable corporations and associations that all intangible property be exempted from the property tax that the revenue from the corporation franchise tax and the personal income tax inure to the state district school und the excess if any to the state fund to refinance schools the board believes this plan would do away with the troublesome question of a classified property tax settle the bank tax question and also solve the corporation tax difficulty its plan proposes that the new source be used tor I 1 ahe district school fund to replace the present state district school tax levy on property based on the federal income tax returns the board belleveau bel levea the 6 per cent business tax imposed would yield approximately above all exemptions and deductions from mercantile manufacturing and utility enterprises 1100 from mines and large financial concerns from for eign corporations doing business alth I 1 in the state and receipts from other miscellaneous sources to bring the total to by replacing the present corpora alon stock tax and the bank tax the board estimates it would lose under the plan it would in the boards opinion double the taxation on some langs largs pro ducong mines and it this be too high it could be offset by reducing the present multiple for determining assessments sess ments on mines the board holds in effect the board admits such a plan would deprive some school districts now highly favored of the mine tax benefits but the properties would be placed on more of a of a state resource to be taxed for all the children regardless of residence the board is convinced that the plan will cut about 48 mills from the present state levy and give the taxpayer relief to the extent of 15 per cent on tangible property one central administration under a nonpartisan non partisan board governed by civil service Is savored to administer this plan A suggestion also Is made that all tax collecting agencies of the state be consolidated under one head to accomplish this plan constitutional amendment bould have to be made to art 13 sec 2 3 5 10 and II 11 the board advocates writing into the organic law an amendment to give the legislature full authority to lay down methods of taxation and assessment ses without any constitutional limitation rev M S metzler baptist missionary and will leave friday for salt lake city to receive a new I 1 car which the baptist society Is purchasing for him the car will be especially ally arranged tor his work he will return in a few days |
