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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