Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-11-22
Taxation of Corporations.


Provisions of the bill reported by the
ways and means committee
The committee on ways and means through Mr.
Hooker the chairman reported Wednesday its
bill to provide revenue for the payment Of state
expenses by laying a tax on corporations. The
bill provides that the funds Tor the payment Of
state expenses shall be raised by direct state taxes
upon the corporate franchise, or business In the
state Of railroad insurance, express, telegraph,
telephone, steamboat, car and transportation
companies, savings banks, savings institutions
and trust companies. There shall be commits
sioner of state taxes who shall be appointed by
tho governor and confirmed by the senate, and
shall hold his office for two years at annual salary
of 81 400 and necessary expenses. The commits
siouer shall send semi-annually to the principal
office Of each corporation person, etc, required
to pay tax TO the state Except foreign insurance
companies) and to all general agents Of foreign
insurance companies in this state, blanks SO form
ulated AZ to require statement of all facts neces-
sary to determine the amount of the tax payable |
BY each The treasurer, cashier or chief financial |
officer of each corporation etc, shall fill out such
blank sign and swear to it and shall return 1t to
the commissioner or before the tenth days Of
February and August Except in cases of railroads
which shall have until the last days OF these |
months) for the seIni-annual period terminating |
with the last day of December or June next pre- |
ceding. At the time of making such return to |
the commissioner such corporations, etc, shall |
send to the state treasurer the amount Of its semi
annual tax, based ON the return made to the com
missioner. The penalty for failure to make re- |
turn to the commissioner ia $500 for each days
neglect. The penalty for failing to pay the tax is
forfeiture to the state of the amount of the tax
and $500 additional for each days neglect In
case of foreign insurance companys failure to
| pay tax the TAX commissioner shall notify the
insurance commissioner who shall thereupon re-
woke the licenses of the company and all Its
agents. Every corporation, etc, owning or oper-
ating railroad in this state as owner, lessee, re-
ceiver trustee or otherwise shall pay tax on the
gross earnings of such railroad IL situated wholly
within the state; if partly without the state on
such proportion OF the entire gross earnings as
the mileage of trains in this state bears to the
mileage OF all tains run by the entire main line of
| the road
THE RAILROAD TAN.
The tax is rated according to the earnings per
mile of road in this state as follows: At the rate
of two per cent on the first 81, 0C0 per mile, or
| the total earnings of less than that sum; three
per cent on the first thousand or part thereof
| above two thousand dollars mile; four per cent
on the first thousand or part thereof above three
thousand, and five per cent on all earnings above
four thousand dollars Il mile. When such rail-
railroad is operated in this state by a corporation
and company by virtue of a lease other con-
tract the tax shall be paid by such lessee and
may be charged against and deducted from
the rent.
INSURANCE COMPANIES.
Every home and foreign insurance company do
ing business in this state shall pay q tax at the
rate Of two per cent per annum on the gross
amount of premiums and assessments collected on
life insurance company shall pay one-half of one
per cent per annum on all surplus over and above
the necessary four per cent reserve. From any
tax so ASSESSED upon insurance companies there
shall be deducted from the full amount of premi-
ums and assessments the unused balance in notes
taken on open policies, all sans paid for returned
premiums or cancelled policies and sums paid TO
other insurance companies incorporated by this
state or to agents within this state or foreign COM
panes for reinsurance on risks.
SAVINGS AND TRUST INSTITUTIONS
The tax upon savings banks and savings inst-
tutions is one half Of one per cent on the average
amount Of deposits and accumulations, but the
tax remains in the state treasury for the payment
of state expenses instead of being distributed to
the towns the present law provides. Trust
companies and " savings banks and trust compa-
mics" are taxed one per cent on the average
amount of deposits and accumuatons deducting
thereirom such percentage rs such institution
pays to the United States, so long as such tax
shall continue to be paid and such part of the ac-
foundations rs is added To the stock and taxed TO
the stakeholder and also the amount Of assets
invested in real estate No other TAX shall be as
sessed on such deposits or accumulations or
against the depositors on account thereof, except
individual deposits exceeding $1,000.
EMPRESS AND TELEGRAPH COMPANIES ETC.
, Every corporation, joint stock company, person
or persons doing express, telegraph OF telephone
business shall pay tax at the rate OF three per
cent the gross receipts of their business tran
sacted in this state. In the case of telephone
companies the rental of instruments shall be in
cluded in the gross receipts Every steamboat
company, car or transportation company incorpo-
rated by this state shall pay tax at the rate OF
two per cent annually on the gross receipts of all
a their business.
, METHOD OF COLLECTION
All these taxes are TO be paid to the state treas
urer in the month of February and August and
7 on before the tenth days of such months except
in the of railroads, which have till the end
) these months. The tax commissioner shall have
full powers OF examination of the books and Off
of all corporations, etc, in order to enforce
the provisions of the law and the payment OF ful
Q taxes. Penalties provided for any refusal oil
evasion by the corporations. The commissioner
. has the power TO assess an additional tax upor
the discovery of any omission in the returns
The real and personal estate OF railroad express
k telegraph, and telephone steamboat, car ant
. transportation companies and the stock in steam
. boat, car and transportation companies are ex
0 empt from any taxes except those levied by ih
: act. The first semi-annual period begins on thu
:, LIST of January 1882 The state and county equal
- ization boards are abolished All county take
: shall be raised per capita according 10 the popu
:. laton by the census of 1880, and shall an,
state tax which it may become necessary to rails
on account OF the failure OF the taxes on corpora
VI tons to raise the necessary amount.
IS All laws now existing In regard to the assess
g. ment and collection OF state and county taxes ar
"a repealed or modified so rs TO conform to the re
10 qurements of this act, The bill contains all tn
B. necessary machinery for carrying its provision
into effect and Furnishing any evasions disobe
dience of them The members of the committe
believe that the law will raise about $3.50 900
year, apportioned somewhat as follows; Fror
g railroads, $4,000; insurance companies, $40
N 600; and steamboat companies 81 900 TO $40
10 600; express, telegraph and telephone compar
les, $1,000 to 50 800 savings banks etc, S7O,OOt
y Taxing Insurance Companies.
IN AGAINST TAXATION.
n. i hat fba