Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-09-07
TIE CORPORATION TAX LAW.

The Corporation Tax law, passed by tue
last Legislature and designed to provide
revenue for the payment of State expenses by
the taxation ot corporations, went into elect
on the first of January last, and the limit Oh
time for the payment of the first semi-annual
taxes assessed by the law expired August
3lst. A statement of the practical Working
of the law is given elsewhere in this paper
but. before commenting on the figures, II
NAV he well to give brief summary of the
law.
1t provides for tax of five per cent on
the gross earnings of each railroad per mli''
when such earnings exceed four thousand
dollars per mile; four per cent. on less thah
four thousand and more than three
THOUSAND, three per cent. on less thah
three tn ,usand and more than two thousand,
aud two per ecu: on two thousand or less.
All insurance companies doing business in
this S ate are taxed two per cent on Tue
gross amount of premiums and assessments
collected in their business in Vermont; and
every life insurance company incorporated
by this State is additionally taxed one-hali
of one per cent on all surplus over and
above the necessary reserve computed at
four per cent on all existing policies. Saw
ings banks aud savings institutions are taxed
one-half of one per cent upon the average
amount of their deposits and accumulations ;
and trust companies and savings banks aud
trust comp mics are taxed one per cent
on the average amount of their depos-
its. Express, telegraph and telephone com
panies are taxed three per cent on
the gross receipts of their business transact
ed in this State and finally steamboat, car
and transportation companies are taxed two
per cent on their gross receipts. All these
taxes are payable semi-annually, in February
and August, except the tax on insurance
companies, which is payable annually in Feb
ruarv. The execution Of the law is coniided
to the Commissioner of Stale Taxes and
failure on the part of the corporations to make
their returns to him or to pay the taxes as
sessed upon them is punishable by fine OF
one hundred dollars for each days delay.
Governor Barstow appointed as such COM
missioner Hon. w. p. Dillingham;
Of Waterbury, and the appointment
was universally recognized as an ex-
cellent one. In case the amount real
lied from this source prove insufficient for
the payment of State expenses, per capita
tax is to be levied on the people of the
State.
Such, briefly stated, are the principal pro-
visions OF the law. Now for its practical
operation. Some of the corporations whose
taxes were due in August have not complied
| with the law, and the returns of those which
have complied are subject to revision. The
to,a. amount actually realized is only $64,
702 90. Let us see how this result compares
with the estimates made by the supporters
of The law at the time of its passage by the
| Legislature. We were then told that the
| tax on railroad earnings would net the State
$3.50, 900 per year ; but the semi-annual tax
due in August aggregated only $50, 657.2s.
From car, transportation and steamboat COM
panics we were promised from $1,000 to
$40, 900 yearly the actual sum for the half
year is only $29SS.2O. From express, tele-
graph and telephone companies is was said the
tax would raise $4,000 or $4,000 the half.
yearly tax is only $7S116. From savings
banks etc., we were told the tax would real
ize $40, 900 the returns under consideration
show that the tax for half year realizes $40,
215 44-or considerable excess, proportion.
a,ely. From Insurance companies it was e1
pected to raise $4,000, What the amount
actually will prove to he, can not Of course
be known until the end of the year.
These figures do not seem 10 III
at all encouraging. On the basis o
the first six month the taxes fol-
the whole year would yield only 1929,
404.lS. Adding to this sum what
ever may be received from the corpora
tions which have not yet reported and from
the insurance companies, and it can hardl,
he possible but that the aggregate will b.
very much less than the $250,000 which i
was said the law would raise. The cas-
may not prove to be such, of course, but i
LOOKS very much like it. The law is mos
excellent one as far as it goes, but it doe
not 60 far enough, apparently.
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