The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1878-04-20
The New Tax Law


The new law, chapter 4l3 Of the acts Of the
last session, amending the provision of the
general assessment law Of 1876 upon the sub.
Ject Of what is taxable property in this State.
and what IS not. and the opinion Of Attorney
General Gwinn in regard to the new law ere
atIng the office of tax commissionerand defn-
ing the duties of that officer, particularly in
regard TO the taxation of corporations. will
be found TO throw much light upon a subject
OF very general interest at this time. The
act OF 1878, chapter Alb, repeats and re-en-
acts, with important amendments. the first
two sections of the assessment law of 1876.
The list OF properly exempt from taxation is
materially enlarged, and the enumeration of
the several descriptions of taxable property
IS much more precise. The taxation Of YES
sells and of shares in vessels owned by resi-
dents of the State is confined to vessels req
iStered IN ports Of this State. Mortgages 10
be exempt must be Ich0lly upon property in
this State. Bonds OF other States are ex-
empt only when made so by the laws of the
State under which they are issued. All 9th
er bonds, except bonds of the government of
the United States, are expressly declared to
he taxable. So with all descriptions OF stock
of corporations in this State. no matter where
owned, and of corporations, no matter where
situated, owned by residents of this State
property of corporations the stock Of which is
wholly or in part exempt from taxation, and
which does not fall within the exemption.
The exemption of church property, instead
OF being confined TO the church buildings and
the ground actually covered By them, is ex
tended to parsonages and the ground ap-
purtenant to both churches and parsonages
which may be necessary for the use thereof.
The exemption of hospitals aud benevolent
institutions, instead of being confined to those
which are intended exclusively for the indi-
gent sick, is made to embrace all institutions
of the kind, and n similar exemption is added
in favor of educational and literary institu-
tons, their buildings andappurtenantgr grounds,
furniture, libraries and equipment Under
the act of 1874 stocks and securities held by
such institutions were exempt to the amount
of $4,000, but such is not the case in this
act.
The opinion ofthe attorney general, which
IS in answer to sundry questions propounded
by Tax Commissioner Woulford states sue
ciRctly the difficulties which will prevent the
application of theprovisiOns of the act of
1878 in regard to the taxation of corporations
to the taxes of this year. The act is declared
to be operative from the date Of its passage.
and so far as the Office of tax commissioner
Is concerned, and the general provision cloth
ing the Appeal Tax Court and the county
commissioners with power to revise and cor
rect assessments, there is nothing to interfere
with its taking effect at once. BY the act,
however, provision is made for segregating
for purposes of taxation the real estate Of
corporations in this State. Such real estate
Is made taxable where it is located, and the
valuation of such real estate made by the
county commissioners or Appeal Tax Court
Is to be deducted from the valuation of the
stock of such corporations made by the tax
commissioner. Upon this last valuation, af.
ter the value of the real estate, separately
assessed, Is deducted, city and county taxes
are levied and paid by the corporation. In
order to admit of this new mode of assess.
ment corporations are required, under penal
ties, to return annually with the list of their
stockholders, &c, statement of the real es-
tate owned by them and where situated, &c.
This return, under the act of 1874, which is
not changed in this respect, must be made on
or before the first of March in each year.
The new act was only passed, however, on
the 18th OF March. Consequently no such
return can be made for this year Conse-
quently no valuation of the shares of such
corporations can be made by the tax COM
missioner for this year based upon any sepa-
rate valuation of their real estate Conse-
quently no basis of valuation or assessment
OF such stock can be certified by the tax com
missioner to the county commissioners and
the Appeal Tax Court upon which the cor
porations can be required to pay their taxes
under the new law. Such in effect and in
brief is the opinion of the attorney general
given to the tax commissioner Under j;
any application of those provisions of the law
which relate to the taxation of corporations
must necessarily be postponed until 1879.
Practically, therefore, the taxes for this wear
imposed upon such corporations and their
shareholders will have to be collected under
the law as it stood before the passage of the
act in 1878. The arrangements entered into
by the Appeal Tax Court with those corpora
tons which have agreed to pay the taxes
upon their shares for which their stockhold.
ers are individually liable will therefore stand.
for the simple and obvious reason that the
tax commissioner, whose concurrent action
with the Appeal Tax Court and the county
commissioners is necessary to put the new
law IN operation, according to the attorney
general, Is powerless to act until the neces-
sary data are furnished him, which, accord.
ing to the same opinion, cannot be done be-
fore the LIST Of March, 1879 Bali Sun.