Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1881-03-16
Making Out the Inventories.


The act to equalize taxation requires each
taxpayer to make an inventory of all his
tardble real or personal property. For the
purpose of facilitating the work of making
out these inventories by the taxpayer and to
enable him to distinguish taxable from non
taxable property, we publish to-day state
ment made up from the revised statutes, Of
the kinds and amounts of property which
the laws exempt from taxation. Knowing
the exemptions, what is taxable property
can be readily determined without de-
tailed list of items.
We believe there exists in the minds of
some individuals little confusion as to the
distinction between a deposit in trust
company and one in a savings bank, such
persons regarding the former as identical
with the latter, and consequently exempt
under the law from direct taxation. This
is an error. Deposits in trust companies
are taxed one-half of one per cent by the
United States government and an individ-
ual depositor in trust company is directly
taxable on his deposit in precisely the same
manner as depositor in national bank.
The deposits in savings banks being taxed
by the state, the individual depositor is
thus indirectly and fully taxed, and is not
required TO put the amount of such deposit
in the list of his taxable property. A trust
company may become savings bank and
pay its tax to the state instead Of to the
United States if it so elects, but until it
does this its deposits are taxable to the in
dividuals in whose name they stand, and
must be put down in the inventory OF taxa.
BILE property.
The question is frequently raised as to the
obligation of tax payer to answer inter-
rogatory No. Is of the inventory, and what
would be the penalty for refusal to answer.
The interrogatory relates to the amount of
stocks, bonds or other securities claimed to
be exempt from taxation under the laws Of
this state or the United States, owned or
held by the taxpayer April l, 1881. The
final clause of section two of the law is man.
datory in its requirement that the blank in
ventories shall contain this interrogatory.
Section ten says, off person or corporation
wilfully omits to make, swear to, and deliver
said inventory, or TO dnswer any interrogatory
therein, as by this act required, Z.
then said listers shall ascertain as best they
can the amount of the taxable property of
such person or corporation, shall appraise
the same at its value in money, and shall
double the sum so obtained" and the taxes |
OF such person or corporation shall be as
sessed on this list. The law makes no dis |
tinction in this requirement between the case |
of person who claims deductions from his |
list on account of debts owing and one who |
claims no such deductions. In the former |
case the statement of non-taxable securities |
owned or held by the tax payer is necessary,
as by the last clause of section three such |
securities shall be deducted from the amount |
of deductions for debts owing allowed by
the listers. In case no deductions are
claimed, it is difficult to see what good rea-
son there can be for requiring an answer to
the interrogatory, and the courts would
doubtless decide against the right of the
state, In such case, ~ collect double taxes
by reason Of failure or refusal to answer
this interrogatory.
Section fifteen of the law requires the
listers OF each town to arrange the personal
lists OF all taxpayers in alphabetical order
and lodge the same in the town clerks Of
flee for the inspection of the tax payers of
such town. What disposition shall be made
Of the inventories is not stated in the act
We have no doubt as to what disposition
-I~..,I L- --,.Ic os .he.,, w. -.e~-d ti.o...
as strictly matter of confidence between
the taxpayer and the state as represented
by the listers. The net results deduced from
these inventories the listers are directed to
expose to public view. The details of tax
payers affairs, from which this result was
obtained, the public have no right or bust
ness to know. The taxpayer having salts
fed the listers, the public must accept this
and the published list. as fnality and
thereupon we see no reason why the invento-
ries should not be destroyed. Their pub
licity, or the risk of publicity which their
existence involves, is an unwarrantabe and
dangerous menace to each tax payers per-
sonal and private interests. The informa-
ton which these lists contain in the hands
of a mans enemy might lead to his financial
ruin. The state has not required this in.
formation for inquisitorial purposes, and
having served their original and legitimate
end, the inventories should be destroyed.