REPORT OF THE TAX COMMISSION
PART I
FINDINGS AND RECOMMENDATIONS
The Tax Commission, which was appointed by the Governor, July 9, 1927, under the authority of Chapter 157 of the Public Laws of 1927, was charged with the following duties and responsibilities:
- To make a thorough study of the subject of taxation as it relates to taxation within and by the State of North Carolina, including all cities, counties, and subdivisions, their exercise and power of taxation.
- To make a study of taxation in other states and places, including the subjects of listing of property for taxation, the classification of property for taxation, exemptions, tax collections, and tax collecting.
- To make a comparative study of taxation in all its phases, including the relation between state and federal taxation.
- To assemble, classify, and digest for the practically use of the state all the available data and knowledge on the subject of taxation, with recommendations of the Commission for the legislative consideration; to submit the same to the Governor and the General Assembly and make them available for all interested citizens, as well as for all officials whose duties relate to taxation in any phase whatsoever.
- To inquire as to whether any constitutional changes with respect to taxation are deemed necessary.
The purpose in the creation of the Commission was to establish the constructive policy of furnishing the Governor, the General Assembly, and the people all the essential information as to the character of our own tax system and those of other states to the end that the General Assembly might make such laws and the people might so amend or reconstruct the Constitution, if necessary, as to bring about for North Carolina the best possible system of taxation and thereby promote the best interests of the State and its citizens, both within its borders and in its relations with other states.
REVENUE NEEDS AND RECOMMENDATIONS
The existing tax laws of the state, with particular reference to state revenue, were completely reconstructed in 1919-1921, and along lines generally considered to be the most modern, progressive, and efficient. By the levy of a comprehensive state income tax, and a substantial increase in corporation franchise, inheritance, and special privilege taxes, provision was made for all state revenue with-
