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Reference is made here by the Comptroller to an article in the Regulations covering income accruing prior to January 1, 1919, but the article referred to does not apparently provide for the exemption of a dividend declared and paid in 1919 or later from accumulations made prior to January 1, 1919. Cases of this kind are not infrequent and they would seem to bear sufficient justification to warrant the taxpayer in placing the particular circumstances before the Comptroller for consideration.
Dividends received by a non-resident of the State are exempt from taxation except to the extent that they shall be part of the income from any business, trade, profession or occupation carried on in the State of New York and subject to taxation under the Personal Income Tax Law of the State. The Comptroller has defined “business carried on” within the State as follows:
“A business, trade, profession or occupation (as distinguished from personal service as employee) is carried on within the State by a non-resident when he occupies, has, maintains or operates desk room, an office, a shop, a store, a warehouse, a factory, an agency or other place where his affairs are systematically and regularly carried on notwithstanding the occasional consummation of isolated transactions without the State. Business is being carried on if it is here with a fair measure of permanency and continuity. Its regularity or continuity need not be for a long period; the life of the business is not a material factor."
Coupons and other forms of interest received during 1919 are income to the extent that the interest received had accrued since January 1, 1919. All interest accruing prior to that date is considered principal in the hands of the taxpayer. For example, a bondholder with an obligation bearing semi-annual interest periods of April 1 and October 1, would be called upon to consider but one
half of the interest received from the coupons cashed on April 1 of 1919, the remaining one-half having accrued prior to the first of that year, and accordingly represents principal in the hands of the taxpayer.
The Act describes a "resident” as any person who Resident shall at any time on or after January 1 and not later Taxpayer than March 15 of the next succeeding calendar year, be or become a resident of the State. This provision ap. pears to work unfairly upon those who become residents of the State between January 1 and March 15 of any year, as apparently such individuals would not only be subject to a tax upon their income for that year but for the preceding calendar year, during which time they were residents of some other State.
The Comptroller is required to attend to the adminis- Power tration and enforcement of the law, is empowered to
Comptroller examine books and witnesses, and is the first tribunal and to which an appeal may be made in the case of revision or resettlement of an assessment. Penalties are definitely prescribed for failure or refusal to supply necessary information, and for those who attempt to make false or fraudulent statements with intent to evade any portion of the Act.
The law as originally passed by the Legislature contains many provisions which are unjust and exceedingly difficult to administer. As a result of a more careful study of the practical operations of the law, recommendations undoubtedly will be made to the State Legislature now in session for the passage of amendments which should eliminate many of the existing unsatisfactory provisions. The Comptroller, working in conjunction with the Attorney-General of the State, has pro
mulgated regulations which indicate that it is the desire of those administering the law to do so with as little inconvenience as possible to the taxpayer. This sort of broadminded, liberal and businesslike policy in the administration of the law is desired and unquestionably will create a spirit of co-operation between the taxpayer and the State that will be of material benefit to all concerned.
District Offices of the New York State Income Tax Bureau
and the District Directors
Returns of income must be delivered or mailed to anyone of the Dirstrict Offices of the Income Tax Bureau. The following are the addressess of the District Offices together with the names of the District Directors:
2. New York
John E. Dempsey
Courtney D. Whittemore 11-13 West Swan St. Henry Seilheimer 106-108 Main St., East James M. Mangan
(United Bldg.) 42342 Salina St.
Daniel T. Leo
Fred J. Graff
Louis C. Andrews
6. White Plains
9. Syracuse 10. Utica
Court and State Sts.
Henry B. Mulford
Partnership returns (Form 204) and fiduciary returns (Form 205) should be sent to the office of the New York State Income Tax Bureau at Albany, N. Y.
THE NEW YORK STATE PERSONAL
INCOME TAX LAW PROVIDES IN
"For the purpose of ascertaining the gain derived or loss sustained from the sale or other disposition of property, real, personal or mixed, the basis shall be first, in case of property acquired before January first, nineteen hundred and nineteen, the fair market price or value of such property, as of January first, nineteen hundred and nineteen, and, second, in case of property acquired on or after that date, the cost thereof; or the inventory value, if the inventory is made in accordance with this article."
To assist in ascertaining the fair market value of bonds as of January first, nineteen hundred and nineteen, we are giving on the following pages what we have understood to be the Bid and Asked prices of many representative issues as of that date, or the nearest date on which transactions were recorded. Where actual sale price was available to us, we have used that