TAXATION AND REVENUE SYSTEMS—PENNSYLVANIA.
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increase in valuation of personal property liable to
state tax and the quota of tax due may appeal to the
court of common pleas of Dauphin County.
2. Rate—
The rate of the personal property tax for state pur
poses is 4 mills on the dollar.
3. Collection—
Collection is to be made by the collectors of the
several counties and cities. Counties are responsible
for collection, and settlement is to be completed with
the state treasurer by the second Monday of Novem
ber, or in default thereof 10 per cent penalty is added
to taxes remaining unpaid. The city and county
treasurers are permitted to retain their commissions
for collection. Three-fourths of the net amount of
tax is to be returned by the state treasurer to the
counties for their own use in payment of expenses
incurred in assessment and collection.
B. POLL TAXES.
There is no state poll tax.
C. THE INHERITANCE TAX.
All estates of every kind whatsoever, situated within
this state, whether the person or persons dying seized
thereof be domiciled within or without the state, and
all estates situated in another state, territory, or coun
try, when the person or persons dying seized thereof
shall have their domicile within this state, passing
either by will or under the intestate laws of the
state or transferred by deed, grant, bargain, or
sale made or intended to take effect in possession or
enjoyment after the death of the grantor or bargainer
to any person or persons or to bodies corporate or
politic in trust or otherwise, other than to or for the
use of father, mother, husband, wife, children and
lineal descendants born in lawful wedlock, children of
a former husband or wife, or the wife or widow of the
son of the decedent, is subject to a tax of 5 per cent
of the clear value of such estate.
This tax is for the use of the state. If the tax shall
be paid within three months after the death of the
decedent, a discount of 5 per cent is allowed; and if
the said tax is not paid at the end of one year from the
death of the decendent, interest shall then be charged
at the rate of 12 per cent per annum from the end of
such year until paid.
No estate which may be valued at a less sum than
$250 shall be subject to this tax.
D. CORPORATION TAXES.
Corporations are subject to both state and local
taxation.
The local taxation of a corporation is like that of an
individual and includes taxes on tangible property.
Public service companies, however, are exempt, not by
statute, but by judicial decision, from local taxation
on property used in their business, except that by
statute the real estate of railroads is subject to local
taxation in Philadelphia and Pittsburgh. Public
service companies include railroad, canal, and tele
graph companies, natural and artificial gas compa
nies, electric light companies, street railway compa
nies, etc. (Eastman, Private Corporations in Pa.,
3655.)
Manufacturing companies, except those manufacturing
spirits or malt liquors, are exempted from state taxation on
property actually and exclusively employed in carrying on
manufacturing within the state, but every manufacturing
corporation, limited partnership, or joint-stock association
shall pay the state tax of 5 mills upon such proportion of its
capital stock as may be invested in any property or business
not strictly incident or appurtenant to its manufacturing
business, in addition to the local taxes assessed upon its prop
erty in the districts where located.
Aside from the bonus on charters, paid once only at
the time of beginning business or increasing stock, all
public service corporations, and a number of others,
pay in general three taxes to the state: (a) On capi
tal stock, 5 mills; (b) on the interest paid on loans, 4
mills; (c) on the gross receipts, 8 mills.
Foreign railway corporations pay a bonus to the state in lieu
of local taxation for the privilege of passing through certain
counties, which moneys are later apportioned to the counties.
Payment of this bonus is a condition precedent to the granting
of the charter.
Bonus on charters.—Except building and loan associations
and corporations of the first class, every domestic corporation is
required to pay to the state treasurer at the time of beginning
business or increasing stock, for the privileges conferred in
its charter, a bonus of one-third of 1 per cent upon the author
ized amount of its capital stock, and the charter is forfeited for
nonpayment of such bonus.
Foreign corporations, except insurance companies, are sub
ject to the same conditions and bonus upon their capital em
ployed wholly within the state.
Tax on capital stock.—The ordinary tax imposed by the
state upon corporations is that upon capital stock. Every
corporation, joint-stock association, or company having capital
stock, and every foreign corporation, except banks, savings
institutions, and foreign insurance companies, are required
to pay an annual tax of 5 mills on each dollar of capital
stock except as noted in the paragraphs which follow. The
assessment is made on the basis of reports which give an
estimate of the value, which is to be not less than the average
price for which the stock was sold and not less than the value
indicated by the net earnings. The auditor general and the
state treasurer may revise this valuation. The corporations
are not required to pay any further tax upon mortgages,
bonds, and other securities owned by them and in which the
whole body of stockholders or members, as such, have the
entire equitable interest in remainder; any other manner of
owning or holding such securities will subject same to taxation,
but the value of real estate taxed locally is not to be deducted.
The tax on capital stock does not apply to that of manufac
turing companies used in the state and which is invested
purely in the manufacturing plant and business, except com
panies brewing and distilling spirits and malt liquors and