The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1900-11-28
The Taxation Bills.


The bill introduced by Chairman
Hale, of the ways and means COM
mittee, which was reported yesterday,
is now the only remaining measure be-
fore the Legislature bearing on the
question of re-adjusting the revenue
laws of the State. All other schemes
for readjusting or reforming the taxa
ton laws are dead or relegsted to
obsc1rity.
The law of 1890 taxed the appraised
value of the property Of all railway
corporations seven-tenths of one per
cent. In lieu of this tax the railways
were permitted to pay two and one
half per cent on their gross earnings,
on lines or parts of lines, in this State.
They have invariably paid on their
gross earnings. The Hale bill proposed
to double this rate. AS amended in
committee and reported to the House
the rate is three and one-halt per cent.
As to telephone companies, section
20 of the Act of 1890 reads: "Every
corporation, joint stock company, per-
son or persons doing telephone business
In this State shall pay a tax to the State,
which is hereby assessed, at the rate of
three per cent annually on the gross
receipts of all their business earned
wholly within this State, including
Sums received for the rental of instru-
ments," etc. The new bill provides q
rate of four and one.half per cent.
AS to telegraph companies, section
81 reads in part: every corporation,
company, person or persons owning Or
operating a telegraph line, or doing tel
egraph 'basiness.in this, State, shall pay
tax to the State treasurer, which is
hereby assessed, at the rate Of ten per
cent annually of the gross receipts OF
all their business" etc. The law OF
1899 made the tax sixty cents per mile
of poles and on line of wire, and forty
cents per mile for each additional wire.
In lieu of this tax the companies were
permitted to pay three per cent of the
entire gross earnings. Mr.. Hale's bill
as amended makes the rate four per
cent.
The section applying to sleeping car
companies provides that an annual tax
of five yer cent of the gross earnings of
such companies for all business done
within this State, including all sums
paid foc the use of such cars by the
railroads in this State. The new bill
provides rate Of seven per cent.
Section "a, laws of 1890, applying to
express companies, provides that these
shall pay tax of Sour per centum. annu-
ally on the gross receipts. of. their bust
ness transacted wholly within this State.
The new bill provides rate of six per
cent.
Steamboat and transportation COM
panies were required to pay tax Of
seven. tenths of one per cent of the
appraised value, besides license fee of
$40 for the first &50I09o of capital stock,
and IS for each additional $4,000 or
fraction thereof. The new bill pro-
poses rate of two and eight-tenths per
cent.
Section 81, applying TO insurance
and guaranty sompaniea, home and
foreign, provides that they shall pay q
tax of two per cent per annum on the
gross amount of premiums and assess
ments collected on their business in
this State. This rate is not changed in
the pending measure.
The tax on savings banks and trust
companies was fixed at seven-tenths OF
one per cent on the average amount Of
their deposits and accumulations. The
new bill provides a rate of one and
four tenths per cent.
If the earnings and appraisals Of the
corporations average the same as las
year, Mr.. Hale's bill, it is estimated
would provide an increase in receipts
of about 100000.
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