The citizen. (Frederick City, Md.) 1895-1923, 1896-04-03
ASSESSMENT.
SUPPLEMENTAL BILLS.

The supplemental bills, which were
enacted during the last hours of the
Legislative session, have made some
important changes in the original AS
sessment Bill, which are summed up
as follows by the SIN:
BONDS AND STOCKS.
First-Bonds and stocks not ex-
empt by the laws of this State are as
sessed-and taxed according to a plan
devised and suggested by Mr.. b. +.
Newcomer, of Baltimore. All bonds
and stocks are assessed at their full
market value and upon that valuation
there is to be paid the full State tax,
whatever it may be Cat present ia
cents on the hundred dollars and an
additional tax of 80 cents on the one
hundred dollars for local purposes.
The tax for local purposes to De uni
form oyer the State, SO that the resi-
dent of the city will not have to pay
any greater tax upon his bonds than
the residents of the counties.
Under this supplemental bill to illus
trate the operation, bond assessed. at
81, 900 will pay State tax of $l.774 and
an additional tax of So for city or
county purposes, as the case may be.
The total tax, therefore, on $1,000
bond, valued at par. will be $4.764.
The great importance of the New
conner amendment and its differences
from the scaling system of the original
bill as passed will be shown by calcu-
lation Of the tax upon 81, 900 six per
cent. bond, for instance, which would
have been exacted by that bill. The
receipts into the State Treasury from
this source will be unchanged, while
in the City of Baltimore the receipts
from stock taxation will be less than
one-siXth as much as at present, sup
posing the volume of taxation to be as
great.
fit were six per cent. bond, il
would be assessed at $500. Upon this
the State tax of ia cents on the 500
would have been levied, making 49,
cents, and in Baltimore the full city
rate of say, 2.05 would have been lev
led, making Stops, total $ll.134 or over
Is per cent. of the interest. But the
six per cent. bond would have cost the
investor about ST 200, and SO the State
and City would have taken from the
investor nearly one-fourth or % pei
cent. of his income.
In the new assessment law, as modi
fled by the supplemental bill, the same
rule of taxation applied to bonds is al
so applied to stocks. Under the exist
ing law the tax commissioner assesses
stocks as near as he can at the cash OF
market value, and upon that valuation
the full State and local tax rate Is lev.
led.
TUNNELS AND BRIDGES.
Second-The supplemental bill re-
stores to the new assessment the
method of valuing tunnels, which now
prevails and has prevailed since 1876
1t is that no extra assessment shall bt
laid and no extra tax shall be levied
upon tunnels and bridges over streams
forming part of the roadbed of any
railroad or turnpike, it being the mean.
ing that such bridge or tunnel shall be
valued at the same rate as any equal
portion of such railroad or turnpike.
This provision is, of course, intended
to apply especially to the three great
tunnels under Baltimore city and
which, under the main bill as passed,
would have been subject to assessment
at their actual cost.
MOh1GAGE CLAUSE.
Third-ihe supplemental bill also
permits corporations executing mort
cages to SECURE bonds to covenant to
pay the tax on those bonds. The mort.
gage taxing clause of the assessment
bill prohibits mortgagors from making
such covenants to pay taxes. But 1t
was feared that corporations might be
unable to float or market bonds upon
which the holders would have to pay
the tax, and so this precautionary
measure was passed.
BUILDING ASSOCIATIONS.
FOurth-The fourth point covered by
the supplemental bills is that exempt
ing the shares of building associations
incorporated in Maryland and doing
business solely therein to the extent
such shares represent mortgages on
property wholly within the State and
executed by members of the said asso-
Citations. 1t is well known that the
shares of building associations are not
usually paid up, but the amount due
on them is secured by the mortgage
and the share usually represents the
same property.
RAILROAD ROLLING STOCK.
Fifth-The remaining feature of the
supplemental bills is that which is to
tax the rolling stock of railroad COM
panies in the counties and cities
through which the road passes. divid-
ing the tax according to the mileage OF
the road in such cities or counties.
This would appear to deprive the city
of Baltimore of any considerable por-
ton of the tax on rolling stock, as the
mileage in the city Is small. 1t, of
course, will give the roads the advan-
tage of the lower rate of taxation pre-
vailing in the counties. Under the
main assessment bill the rolling stock
is taxed at the sltus of the main office
of the company if in the State.