CONTENTS. Page. 7 11 11 12 12 14 17 17 17 18 19 19 20 20 21 23 24 25 Letter of transmittal: Review of conditions. Poll tax... Report of the legislative committee.. Property tax Inheritance tax. General property tax 29 30 32 32 33 33 33 33 33 34 34 34 34 35 35 Page. 36 36 37 40 40 41 41 71 72 72 73 75 41 42 42 42 42 42 43 44 45 46 46 New York-Continued. Capital-stock tax on corporations Report of the joint committee Local taxes Liquor licenses. State taxes Recapitulation of the State taxes on corporations General property tax.. 48 48 49 49 51 51 51 51 52 53 53 54 55 57 57 58 58 59 60 61 61 62 63 63 63 64 64 66 66 66 66 67 67 68 Page. 76 76 79 83 86 86 87 87 89 89 92 98 98 100 Obio—Continued. Foreign insurance companies equipment companies Liquor and cigarette taxes General property tax. Abstract of tax duplicates from 1878 to 1899 General taxation system.... Inheritance tax. Constitutional restrictions. 103 103 104 104 105 105 106 108 108 115 116 117 117 117 118 118 118 118 Page. 119 120 120 122 123 122 122 123 123 125 126 126 126 127 128 129 132 I C-VOL XI-29 134 137 137 137 139 140 140 143 144 145 146 147 147 147 148 148 148 148 149 149 149 149 149 150 151 154 Wisconsin: General property tax Recommendations of the commission... Assessment of real and personal property Collateral inheritance tax Real estate.... Incorporation and franchise taxes. 158 159 159 161 162 162 163 163 164 166 168 169 170 171 172 172 173 173 175 176 176 177 177 178 179 187 TAXATION IN VARIOUS STATES. To the Industrial Commission: I have the honor to submit herewith a report or compendium of the systems of taxation with especial reference to corporations in each of the following States, viz: Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Ohio, Indiana, Michigan, Illinois, Wisconsin, Iowa, and Texas. These States were selected, as directed by the Commission, because of their industrial prominence and the varied character of the systems of corporate taxation therein. It was found that one feature common to all these States, and running through all systems, namely, the general property tax, or as it has been designated, the "American system,” applies not only to individual properties, but also, directly or indirectly, to a greater or less extent, to corporate property as well. This observation is doubtless true of all States in the Union. For this reason it was deemed necessary to set forth the distinctive features of the entire system of taxation in each State applicable to general as well as corporate property, not only as a matter of information, but in order to present an intelligent and comprehensive view of the various methods for the assessment and taxation of corporations, the reasons and principles upon which they are based, and their comparative merits and results. While in some States there is a marked tendency toward the segregation of corporate property from the general property tax, and its subjection to special methods better adapted to property of that peculiar character and reducing the taxation thereof to a rational and harmonious system, thus far the separation is nowhere complete. An effort has been made therefore to present the characteristic features, the merits and defects, of the system in vogue in each State, and in some instances the efforts made to reform it and the difficulties encountered, giving especial attention to the taxation of corporations. In each instance it has been necessary to examine the taxation laws, the work of legislative committees and appointive tax commissions, and a mass of public reports and records in order to present intelligently the system of taxation existing, that your Commission might in the end have a basis for suggestions and recommendations as to changes and reforms in the State systems, and as to interstate action with a view to uniformity of taxation methods applied to corporations. This investigation has necessarily been somewhat tedious and laborious, and this report, in view of the limitation in the time allotted therefor, is submitted with the consciousness that it is not as thorough and complete as the w er would have desired and not devoid of imperfections. I trust, however, that it may serve the purpose of your Commission. REVIEW OF CONDITIONS. In the States hereinafter reported upon are represented substantially all the special methods thus far devised for the taxation of corporations of a quasipublic character, except that of a fixed rate upon net earnings, which is in vogue in the States of Delaware and Virginia, and advocated by some distinguished |