At the same time a new tax on individual incomes was imposed, at rates from 1 to 3 per cent on the total income in excess of the exemptions allowed under the United States income tax law. The revenue from this tax is to be divided, one-half to the state, and onehalf to the towns and cities in proportion to the assessed valuation of real estate. Those subject to the income tax are exempt from taxation on certain intangible personal property (money, bonds, choses in action and shares of stock).

New York State Revenues, Fiscal year ended June 30, 1918.

Pennsylvania. Under the Pennsylvania constitution, taxes must be levied and collected under general laws, and must be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.

The uniform general property tax has never been imposed in Pennsylvania. Real estate is subject to county and other local taxes, as is certain specified classes of personal property; but there is no state tax on real estate. About two-thirds of the state revenue is collected from taxes on corporations. There is also a state tax on collateral inheritances, a system of business licenses, motor licenses and some other special taxes and fees.

Corporation loans and other intangible property are subject to a uniform tax of four mills on the dollar of fair cash valuation. The tax on corporate loans is deducted from the interest by the various corporations (public and private) and paid directly to the state treasury and accrues to the state. The tax on other intangible property (money at interest, credits, mortgages, and other securities) is collected by the counties. Before 1914, the proceeds of this tax were paid into the state treasury, and three-fourths of the amount was returned to the counties; but since then the whole proceeds are retained for county purposes.

The following table shows the tax receipts from corporate loans and the assessment and tax receipts from other intangible personalty for a series of years:

Receipts from taxes on corporate loans and other intangible property

It will be noted that the assessment and tax receipts from intangible property increased rapidly after 1885; and the tax receipts from corporate loans have also gained steadily. In 1913, the last year when the tax from intangible personalty was paid into the state treasury, the total receipts from both sources aggregated $7,600,000, representing an aggregate of nearly $2,000,000,000 of such property. This amounts to about one-half of the real estate subject to taxation in Pennsylvania.

Since 1913 the tax receipts from corporate loans have increased more rapidly, to $3,247,983 in 1916. It is probable that the local tax on intangible personalty (which is not now reported in the reports of the Auditor General) has also continued to increase.

Pennsylvania State Revenue, year ending November 30, 1916.

I. From corporations and associations:

Maryland. The constitution of Maryland from its first adoption in 1776 contained a provision that every person ought to contribute his proportion of public taxes according to his actual wealth in real or personal property. In 1915, a constitutional amendment was adopted definitely authorizing the classification of property for taxation, to be uniform within the taxing district and upon the class of property subject to the tax levy.

Before the adoption of this amendment, a special tax was imposed in 1896, on intangible personal property, including all bonds and certificates of indebtedness issued by corporations and stocks of corporations. Ordinary mortgages, book accounts of merchants and savings accounts are not included. The tax was at first levied at the uniform rate of 30 cents on the $100 (3 mills on the dollar), for local purposes, plus the direct state property tax, which varied from 16 to 31 cents. Since 1914, a uniform rate of 45 cents is imposed, of which 15 cents is for the state and 30 cents for local purposes. and savings banks are subject to another special tax.

Bank shares

The financial results of the special tax on intangible property is shown in the following table, giving the assessed valuation, tax rate and revenue for 1896 (the last year under the general property tax), 1897 (the first year under the special tax), 1915 and 1918.

Under the special tax, the assessed valuation of intangible property in 1897 was nearly ten times that of the preceding year when subject to the general property tax, and the revenue was more than doubled. Since then, these figures have increased more than fourfold.

In 1918 the assessed valuation of intangible personal property was 25 per cent of the assessed valuation of real and personal property subject to the general tax. About half of the state revenue is derived from a state tax on real and personal property, levied to meet expenses in connection with state loans and public schools. Other state revenues are from taxes on gross receipts, insurance companies, collateral inheritances and motor vehicle and other licenses.

Massachusetts. The Massachusetts constitution of 1780 provided for proportional taxes on property, and also for reasonable duties and excises. A constitutional amendment, adopted in 1915, definitely authorized an income tax, to be levied at a uniform rate upon incomes from the same class of property, and for the exemption from proportional taxes of property the income from which should be taxed.

State revenues are derived mainly from a state tax on general property, corporation and inheritance taxes and sundry licenses and fees, as shown below:

Massachusetts State Revenue, Year ending November 30, 1917.

Following the adoption of the income tax amendment, a classified income tax was imposed by the state in 1916, the proceeds to be distributed to the cities, towns and other local districts. There is a 6 per cent tax upon the income from intangible property, a 3 per cent tax upon dealings in intangible property, and a tax of 11⁄2 per cent upon incomes from annuities, trades and professions. Income from real estate, dividends of Massachusetts corporations, savings bank deposits, and from mortgages on Massachusetts real estate are not subject to the income tax, as the property from which the income is derived as otherwise taxed. Property, the income from which is taxed, is exempt from other general taxation.

From the proceeds of the income tax local communities are first reimbursed for the loss due to the exemption of intangible property; and the excess of income tax collections is also distributed to the local treasuries.

The financial results of this tax for the years 1917 and 1918 are shown below.

From the distribution of the excess over the reimbursement for the personal property tax, it appears that the income tax has yielded from $3,500,000 to $4,500,000 more than the former direct tax on intangible property. The tax commissioner reports a general feeling of satisfaction with the new tax. Those with large incomes are paying more than before; and many who paid nothing before are now contributing their share; while many of small means are given relief by the exemptions for small incomes allowed under the law.

Iowa. The constitution of Iowa does not require a uniform. general property tax; but the state tax laws have imposed a general

property tax with some modifications. Beginning in 1912, a special tax was imposed on moneys and credits, at the rate of five mills on the dollar of actual value. Other real and personal property is assessed at one-fourth of actual value. The tax is levied by the county boards of supervisors and collected by the county treasurer; and the proceeds are divided on the same basis as other taxes.

In 1911, the last year when moneys and credits were listed with other personal property, the total of all personal property was $134,452,985. Since that year the valuation of moneys and credits and of other personal property have been as follows:

Kentucky. Before 1915, the constitution of Kentucky required. a uniform general property tax. In that year a constitutional amendment was adopted authorizing the classification of property for taxation. In 1917 changes were made in the tax laws and a state tax commission was established with general supervisory power over assessments. The state tax rate was reduced from 55 to 40 cents on the $100. The rate on bank deposits and live stock was reduced to 10 cents on the $100. Money and credits were exempted from local taxation, and severe penalties were provided for their concealment from state assessment. A mortgage recording tax of 20 cents on the $100 was imposed.

The results of the first year under the new laws are shown in the following statistics from the report of the state tax commission for