tical experience at the plumbing business, and shall not be interested, either directly or indirectly with any firm or corporation engaged in the plumbing business. The salary of said plumbing inspector to be provided for by the respective cities.

Penalty.

Section 8. Any person violating any provisions of this act shall be deemed guilty of a misdemeanor, and be subjected to a fine of not less than twenty-five ($25.00) dollars, nor exceeding one hundred ($100.00) dollars or the cancellation of his certificate or both, for each and every violation thereof.

Repeal.

Section 9. All acts or parts of acts in conflict herewith are hereby repealed.

Approved March 16, 1915.

CHAPTER 164.

TAXATION-INCOME TAX.

AN ACT providing for an income tax and repealing article seventeen chapter seventy-two Revised Laws of Oklahoma, 1910.

Be It Enacted By the People of the State of Oklahoma:

Income Tax Against All Persons.

Section 1. Each and every person in this state, shall be liable to an annual tax upon the entire net income of such person arising or accruing from all sources during

the preceding calendar year, and a like tax shall be levied, assessed, collected and paid annually upon the entire net income from all property owned, and of every business, trade or profession carried on in this State by persons residing elsewhere.

Sworn Report to Auditor By March 1.

Section 2. On or before the first day of March of each year, each person liable for an income tax under the provisions of this act shall file with the State Auditor a sworn return of his net income for the year ending December 31st, last preceding upon blanks to be prescribed by said State Auditor and furnished to the taxpayers. Said statement shall be made as near as practical at the time of making the federal income tax return.

Penalty for Failure to Make Report-False Report.

Section 3. Any person liable for an income tax under the provisions of this act, who shall fail, refuse or neglect to make the return under oath as required by this act, on or before the first day of March for the last preceding calendar year, shall be liable to a penalty of one hundred dollars in addition to the said tax, to be collected as other taxes are collected. Any person required by law to make, render, sign or verify any return under this act, and who makes any false or fraudulent return or statement with intent to defeat or evade the payment of the tax herein levied, shall be guilty of a misdemeanor, and upon conviction shall be fined not exceeding one thousand dollars, or by imprisonment in the county jail not to exceed six months, at the discretion of the court, with the cost of prosecution.

Auditor to Make Rules and Furnish Blanks.

Section 4. The State Auditor is hereby empowered to prescribe and promulgate such rules and regulations as may be necessary to carry out the provisions of this act, and shall prepare and furnish for the use of persons liable for the income tax hereunder all necessary blank affidavits and other forms for making the income tax returns.

"Income"-Definition and Scope of Term.

Section 5. The term "income" as used in this act, shall include:

(a) All rentals derived from real estate or any interests thereunder of a potential duration of two years or

more.

(b)

All interest derived from money loaned or invested in notes, mortgages, bonds or other evidence of debt of any kind whatsoever.

(c) All wages, salaries or fees derived from services: Provided, that compensation of public officers for public services shall not be computed as a part of the taxable income in such cases where the taxation thereof would be repugnant to the Constitution.

(d) All dividends or profits derived from stocks or from the purchase and sale of any property, or other valuables acquired within one year previous, or from any business whatsoever.

(e)

All royalties derived from the possession or use of franchises or legalized privileges of any kind.

(f) And all other income of any kind derived from any source whatsoever, except such as is exempt from taxation hereunder by some law of the United States or of this State.

Incomes-How Estimated-Deductions.

Section 6. In computing the net income taxable under the provisions of this act, there shall be allowed as deductions from the income of any person:

First: The necessary expenses actually paid in carrying on any business, not including personal, living or family expenses;

Second: All interest paid within the year by a taxable person on indebtedness.

Third: All state, county, school and municipal taxes paid within the year, not including those assessed against local benefits;

Fourth: Losses actually sustained during the year incurred in trade, or arising from fires or storms, and not compensated for by insurance or otherwise;

Fifth Debts due to the taxpayer actually ascertained to be worthless and charged off within the year;

Sixth: A reasonable allowance for the exhaustion, wear and tear of property arising out of its use or employment in the business not to exceed in the case of mines, five per centum of the gross value, at the mine of the output for the year for which the compensation is made, but no deduction shall be made for any amount of expense of restoring property or making good the exhaustion thereof for which an allowance is or has been made: Provided, that no deduction shall be allowed for any amount paid out for new buildings, permanent improvements, or betterments, made to increase the value of any property or estate.

Computing Tax-Graduated Tax.

Section 7. There is hereby levied annually a tax for the current expenses of State government, upon all incomes taxable hereunder in excess of three thousand ($3,000.00) dollars to be computed upon the following rates:

(a) On the first ten thousand ($10,000.00) dollars of such excess or any part thereof, at the rate of ten mills on the dollar.

(b) On the next fifteen thousand ($15,000.00) dollars of such excess or any part thereof, twenty mills on the dollar.

(c) On the next twenty-five thousand ($25,000.00) dollars of such excess or any part thereof, thirty mills on the dollar.

(d) On the next fifty thousand ($50,000.00) dollars of such excess or any part thereof forty mills on the dollar.

(e)

And on all such excess in addition to the aforesaid amounts, fifty mills on the dollar.

The said tax shall in all cases be computed by adding together the amounts payable under each of said classes. Net Income-What Constitutes-Deductions for Spouse or Child.

Section 8. The Auditor shall be authorized to allow every person as net income not taxable, the following deductions:

(a) To an individual, nothing beyond the said sum of three thousand ($3,000,000) dollars.

(b) But to an individual living with his or her spouse an additional one thousand $1,000.00) dollars.

(c) For each child under the age of eighteen years the sum of three hundred ($300.00) dollars additional.

(d) For each child and every person for whose support the taxpayer is legally liable and who is actually and solely supported by and totally dependent upon and or actually and permanently domiciled with the taxpayer, an additional $500.00, while such dependent is engaged solely in acquiring an education, and two hundred ($200.00) dollars in other cases. In computing said exemptions and the amount of taxes payable under this act, the income of the wife shall be added to the income of her husband, and the income of each child under eighteen years of age, to that of its parent or parents when said wife or child is not living separately from said parent or parents.

Auditor May Revise Returns-Hearings.

Section 9. The State Auditor is authorized to revise any returns that may be made to him, and he shall notify the party making such return of such revision on or before