Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1891-03-19
"The Illusions of Taxation on Invisible
Things"


Just now, when Mr.. J. Alexander
Fulton's proposition to lay taxes upon
everything in order to equalize taxation
Is before the Legislature, with very
fair chance Of being enacted unless the
people pay more attention to it than
they have thus far, it is well to refer to
the experience of other states in this
subject. 1t seems that New Y--k and
Delaware are both threatened with an
obnoxious system of inquisitorial taxa
ton, a bill similar in many respects to
Mr.. Fulton's measure being now pend
ing before the Legislature at Albany,
with every prospect that it will pass
unless the people protest against it. OF
this bill the New York Epeaing Post
editorially says;
II provides for an immense amount of
printing-"hlank inventories equal in
number to three times the gross number of
taxable inhabitants, copartnerships, cor
porations and associations of the state,
These blank inventories have questions to
be answered by every person, copartner-
ship, &c. The first question relates to the
real estate owned by the parties respect
lively, whether in acres or town lots. In
cities it is required that the owner shall set
down the number of the lot and block,
frontage in street and depth III feet and
number of ward wherein situated" The
futility and needless bother of this clause
is apparent at once Very few lot-owners
know these facts, but the tax officers do
know them already. The informa,
ton when obtained will add nothing
IN tho Ennu'1n fltra Af thn taNfrary artth g,p
tiles, but will put the taxpayer to u
vast deal of trouble and expose him TO
prosecution for every mistake he may
make in describing his property. Under
the law, as it now stands, the state assesses
the tax against the property-in the name
OF the owner, if the owner is known, but
against the property in any event. If pay
nlent is not made, the property is sold
whether the owner is reachable or not.
This is right, and it is the only way in
which taxes on real estate can ever he col
lected. Even in states like Massachusetts,
where deduction is made for mortgages,
the whole tax is levied on the land, and a
bill is rendered to the mortgageor and the
mortgage for their respective interests.
but the land is held for the whole tax, and
is sold if either moiety is not paid. Nc
other system has ever been found work
able.
This interesting bill, however. requires
the owner of real estate to give q descrip-
ton of any liens on his land by way OF
mortgage, judgment, or contract of sale
together with the name and place Of bust.
ness of the owner of the LENA require
ment obviously impossible to be complied
with in many cases, since mortgages, judg
ments, and land contracts may pass from
hand to hand by sale. by assignment, by
death, or by bankruptcy, without notice tc
the owner of the fee.
Next in order in the list of interroga
tories is one requiring a list of all persona
property ''of each different kind.n wber
ever situated, including money deposits in
banks, bonds, stocks, promissory notes
book debts &c. When a similar require
ment was made in the Brundage bill three
years ago, The Eumiag Post presented al
some length the experience of the states Of
Connecticut Ohio Georgia, West Virgini,
and Wisconsin, where similar attempt.
have been made to tax invisible and in
tangible things. These experiments haC
been collected by Prof. II. 4. Ely as
member Of the Maryland Tax Commission
not by book-reading, but by personal in
vestigation in the states. The story wa
the same in all of them-utter failure L
collect such taxes except in few cases
such as the estates passing through tn,
probate courts, and extra-conscientiou
persons. In Connecticut the amount o
this class Of property actually reached hat
dwindled from $4,000, 900 to s13. 900, 900 II
81 years, i. e., from 1855 to 1885, although
the listing law had been in force all TIL
time. One year ago, Connecticut aban
doned the attempt to collect by listinj
these invisible things and adopted new sys
TEN of voluntary registration. In West Viz
ginia the tax commissioners said tina
paying taxes on this class of property i
almost rs voluntary and is cOnsidere,
pretty much in the same light as donation
TO the neighborhood church or Sunday
school" Yet here the listing law is ais
in force. The experience in Ohio an
Georgia was of the same kind. Watche
are taxablein Georgia, but only 10 watche
We're actually taxed in the city of Savan
nah. Yet Prof. Ely found that the taxin
officers of Georgia were most assiduOus AIN
conscientious in the discharge of their onel
Gus duties.
That the state Of New York, now out q
debt, and collecting only Ss,6l9,OOO fu
state purposes, should revert to an eS
ploded, inquisitorial, and futile system {
taxation, whose only effect will be to pit
people to endless trouble and multipl
perjury, is something astonishing. an
hardly credible. Yet there is every reaso
to believe that the Listing bill will ia.
unless steps are promptly taken to pr
vent it.
All the lessons of experience al
against the systems Of taxation pre-
posed by the New York bill and b
the measure now pending at Dove
Such attempts are worse than futile an
to renew them would be losing exper
ment. But the fact remains that NJ
Fulton's bill is backed BY influences Til
are likely to insure its success unle
those who are opposed to it make the
opposition felt.