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Show TAX REVISION HEARINGS CLOSE Board of Equalization Body's Ideas Likely to Be Used As Basis For New Laws (Tribune) Adoption of the Snow plan, submitted sub-mitted by the state board of equalization equal-ization and assessment as a basis for state tax revision, was practically practi-cally assured at the close of discussions dis-cussions between the state tax revision re-vision commission and the special committee of the legislature. Pending receipt of plans from the Utah state farm bureau and the Utah Taxpayers' association the latter lat-ter expected to deal largely with putting "teeth" in the administration administra-tion of any laws adopted the fcint members assembled brought up the question of accepting the Snow plan as a tentative one for a working basis. It was assured that modifications modifi-cations might be expected in one or more factors of the plan, but as a tentative plan it was the most practical prac-tical one yet to be presented before the tax revision commission. The commission is awaiting the pleasure of the legislative committee before officially adopting any plan. The Snow plan is one presenting new sources of revenue to relieve present laws of property taxation, which are now classed as real estate, es-tate, improvements and personal property. The plan was presented by E. H. Snow of St. George, chairman of the state board of equalization, in behalf of the board. The plan as submitted simplifies taxation through its division into three departments: First, a tax on tangible property wherever located or by whom owned, as the only fundamentally correct means of property taxation. Second, business corproation tax, otherwise known as excise or franchise fran-chise corporation tax, which is based on the theory that all business should pay such excise tax for the privilege of doing business within the state. Third, personal income tax, which is based on the theory that all persons per-sons enjoying the protection of state government and having tangible ability should pay according to such ability. Chairman Snow appeared before the two groups Wednesday afternoon for a further discussion of his plan. He had previously appeared when the plan was first presented. Differences of some members regarding re-garding parts of the plan relating to mine taxation, bank taxation, and corporate franchise tax on income, are expected to bring a fight on the part of certain members of the legislative committee if the Snow plan is officially adopted as a skeleton skele-ton for constructing a tax revision system. Representatives of the Utah Education Edu-cation association met with the commission and legislators during the morning session and presented their plan for giving the legislature full power to classify property for taxation and determine levy rate restrictions. As a basis for his argument that banks would escape under the proposed pro-posed business tax from paying anywhere any-where near what their present tax is, Representative David Hirschi of Washington county favored an increased in-creased business tax rate. The Snow plan suggested a tax of six per cent on the corporation income and outlined that this was the highest rate levied in any state under similar sim-ilar plans. Senator Hirschi suggested suggest-ed increasing the figure to ten , or twelve. Dr. Harley L. Lutz, expert tax advisor, ad-visor, contended that while this might not prove too burdensome on banking institutions it would have to be applied to all business and in the case of some mercantile establishments estab-lishments and other who have large property holdings on which other taxes are paid, the increase would impose an unwarranted burden. The Washington county man took the stand that the question of revenue reve-nue the state would receive under the business tax was probably of paramount importance and he favored fav-ored some levy which would increase the revenue above the estimates of the Snow plan. He also agreed that the new business tax incorporates a graduated minimum tax to be applied against a corporation and suggested that a minimum rate of $10 be levied on a corporation of $1000 capital and possibly $100 against the corporation with $10,000 capital. Declaring that upon agriculture falls an extra heavy and unjust portion por-tion of the state's tax burden, the Utah state farm bureau filed its recommendations rec-ommendations with the state tax revision re-vision commission, demanding reform re-form of the present system and advocating ad-vocating unlimited power for the legislature concerning tax matters. Restriction of the classes of property prop-erty subject to exemption, classification classifi-cation of property for taxation, the adoption of a state income tax law and the centralization of, the powers of levying and collecting taxes, are among the changes recommended by the farm society, an organization representing most of the farmers of the state. The farm bureau urged that the state constitution be liberalized and that the legislature be given practically prac-tically unlimited power in dealing with the subject of taxation. It is recommended that a careful consideration to the subject of exemptions ex-emptions having in view the restriction re-striction rather than the increase of properties subject to exemption. It urges the adoption of measures giving to the legislature the power to classify property and recommends the enactment of an adequate state income tax law. |