TAXATION AND REVENUE SYSTEMS—PENNSYLVANIA. 
197 
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