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TAXATION AND REVENUE SYSTEMS—PENNSYLVANIA.
such as exercise the right of eminent domain. Foreign cor
porations are taxed only on the portion of capital stock em
ployed in the state, and the same is true of domestic corpora
tions. Fixed capital employed in business outside the state
is deducted. The tax on capital stock is thus a tax on the
company’s property and assets, together with the franchises,
privileges, good will, and earning capacity. Corporations and
limited partnerships, foreign or domestic, which have no capi
tal stock or which do not pay a tax on capital stock are re
quired to pay a tax of 3 per cent upon their annual net earn
ings or income in addition to taxes on personal property. This
does not apply to manufacturing companies.
The tax on fire and marine insurance companies is at the
rate of 3 mills on each dollar of actual value of the whole
capital stock.
Tax on bank stock.—Every bank or savings institution hav
ing capital stock, whether incorporated under the laws of the
state or of the United States, makes to the auditor general a
report each year setting forth the full number of shares sub
scribed for or issued and the actual value thereof, which is
taken to be equal to the amount paid in on the capital stock
plus the surplus and undivided profits. The tax is assessed
as to the stockholders, but is paid by the banks, which have
a lien on the stock and on the dividends to secure reimburse
ment. The banks have the option of paying at the rate of 4
mills on the dollar of the actual value, as above defined, or at
the rate of 10 mills on the dollar of the par value of the stock.
The 10-mill tax, or the 4-mill tax if paid before March 1, is in
lieu of all local taxation except taxes on real estate.
S Trust companies are taxed at the rate of 5 per cent on the
actual value of the stock.
Building and loan associations chartered by the state of
Pennsylvania are not subject to the provisions concerning
taxation of capital stock as herein enumerated.
All “ full paid, prepaid, or fully matured ” stock in any
building and loan association upon which cash dividends are
paid is required to pay a state tax equal to that on moneys
at interest by the tax laws of the state, viz, 4 mills on the
dollar. Such tax is to be deducted from the cash dividend
or interest and paid to the treasurer of the state.
Distilling companies are subject to a state tax of 10 mills
upon each dollar of the actual value of the whole capital
stock. The auditor general assesses the value upon reports
by the corporation.
Tax on receipts.—Every railroad, pipe line, conduit, steam
boat, canal slack water transportation, street car, telephone,
telegraph, express, electric light, and car company is required
to pay a tax of 8 mills on the dollar of gross receipts from
business in the state. The tax is to be paid semiannually
upon the last days of January and July. There is a penalty
of 10 per cent for neglect to make return and pay the tax.
Private bankers or brokers pay 1 per cent on gross earnings.
Savings institutions and corporations not subject to a tax on
their capital stock or gross premiums are subject to a tax of
3 per cent on their net earnings or income.
Domestic insurance companies pay a tax of 8 mills upon
the gross premiums and assessments received from business
transacted within the state, except companies doing business
on the mutual plan without capital stock or reserve. The
companies are to make semiannual reports and pay the taxes
on the last days of January and July.
Foreign insurance companies pay an annual tax of 2 per
cent on gross premiums received from business in the state.
Tax on corporate loans.—The treasurer of every corpora
tion is to deduct from interest payable on any scrip, bond,
or other indebtedness of the corporation due to residents of
Pennsylvania a state tax of 4 mills on the dollar of such debts.
This tax is laid on the bonds of all corporations, public
or private, excepting banks, savings institutions, and foreign
insurance companies, and including counties and cities.
The tax is not on the corporation or its property, but on
the individual citizen of the state who holds the bonds. The
corporation is chargeable only as collector. The tax was
formerly laid on all bondholders, foreign and domestic, but
was held unconstitutional as to foreign bondholders in the
case of state tax on foreign-held bonds.
E. BUSINESS TAXES, LICENSES, AND FEES.
The following business taxes and licenses are an
nual unless otherwise specified:
Dealers and vendors.—Retail dealers and vendors, $2 and
also 1 mill additional of the whole volume, gross, of busi
ness transacted annually; wholesale dealers and vendors, $3
and | mill additional on gross business; dealers and vendors
at exchanges and boards of trade, 25 cents on each $1,000
gross sales.
Brokers’ annual license fees—all stock, exchange, bill, real
estate, and merchandise brokers are required to take out an
annual license before they engage in business. For such license
they pay, if a resident of Philadelphia County, $100; Allegheny
County, $50; any other county, $25. In addition to these
license fees license taxes are collected annually, as follows:
All brokers, factors, real estate agents, and pawnbrokers pay
an annual license tax when gross annual receipts are less than
$5,000, $10; $5,000 to $10,000, $25; $10,000 to $20,000, $50;
$20,000 and over, $100. Insurance brokers, $10 if issued to an
individual, $25 to a company. License as excess insurance
broker, $100; for license as agent for any company not incor
porated under the laws of the state, $2.
Auctioneers pay 3 per cent of the gross amount of annual
business except in the city of Philadelphia, where the annual
license fee is $500.
Shooting galleries, billiards, bowling alleys, etc., $20 for the
first table or alley and $10 for each additional table or
alley, and $25 for season at summer resorts, covering all
tables, alleys, etc., in use on the premises. Manufacturers
and importers on sale of commercial fertilizers—100 tons
or less, $15 for each brand; 100 to 500 tons, $20 for each
brand; 500 tons or more, $30 for each brand sold within the
state during the preceding year; where none has been sold
within the state, $15 for each distinct brand.
Wholesale liquor dealers—cities, first and second classes,
$1,000; cities, third class, $500; borough, $250; townships,
$125. Rectifiers, compounders, storekeepers, and agents—
cities, first and second classes, $1,000; cities, third class, $500;
boroughs, $200; townships, $100. Licenses are collected by
the county treasurer and paid over to the state, as follows:
Retail liquor dealers (for state in addition to local licenses) —
cities, first and second classes, $100; other cities, $50; bor
oughs, $50; townships, $25. Distillers—production less than
50 barrels, $100; 50 to 100 barrels, $200; 100 to 200 barrels,
$250; 200 to 300 barrels, $300 ; 300 to 400 barrels, $400;
400 to 500 barrels, $500; 500 to 3,000 barrels, $1,000; 3,000
to 5,000 barrels, $1,250; 5,000 to 10,000 barrels, $1,500; 10.000 to
20,000 barrels, $1,750; over 20,000 barrels, $2,000; all new
distilleries and breweries, first year, $1,000. Bottlers—cities,
first and second classes, $500; cities, third class, $350;
boroughs, $250; townships, $125. Brewers’ license to sell
to licensed dealers only, $1,000; and the following wholesale
licenses: Production, less than 1,000 barrels, $250; 1,000 to
2.000 barrels, $300 ; 2,000 to 3,000 barrels, $400; 3,000 to
5.000 barrels, $500; 5,000 to 10,000 barrels, $750; 10.000 to
20.000 barrels, $1,000; 20,000 to 30,000 barrels, $1,250; 30,000