Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1900-10-05
Double Taxation.

The Report OF the Special Committee
Appointed In 1898 10 Report a Meas
ure OF Relief.
W. j. Bigelow and j. b. Pickett, the
commissioners appointed by the governor
in 1898 to investigate the subject Of double
taxation in Vermont and report measure
forits relief to the legislature OF 1900, have
submitted a report which is comprised in a
pamphlet of A pages. The findings and
recommendations of the committee are
summed up in the report as follows:
After submitting this condensation of
their findings, the committee go on to dis
cuss the whole question of double taxation
and the ground on which their conclusions
we're reached. There will be occasion for
further reference to this report In future
issues.
Findings and Recommendation.
In order that the statement in detail of
the work of the committee may be more
intelligently followed the committee gives
here, in the brlefest way, the findings and
recommendations 1t would offer for your
consideration.
At the close of the year 1898 there was
approximately S22, PIC, 004 40 worth of real
estate mortgages owned in Vermont sub
ject to taxation in the following unequal
degrees:
At that time the savings banks owned
real estate mortgages in Vermont worth
81, 06S, or so. This amount of mortgages
is not taxed at all as such, but a state tax
of seven mills on the dollar is assessed
upon the deposits OF the banks so invest
ed. The remainder, SIS, 124, 500 90 Is sup
posed TO be placed in the grand list for as.
sessment and Is taxed anywhere from 45
cents on dollar Of the grand list in Ran
dolph to s. on the dollar in Mount Tabor,
the average rate for the year 1899 being
$l.51 SO. 100.
To relieve this double taxation 1t is rec
commended that all money loaned in Yer
mont and secured by a mortgage on taxa
BILE property within this state, which mort
| gage is properly recorded together with a
sworn statement by the mortgagor aud
mortgage that the rate Of interest on said
mortgage does not exceed ~ per centum
| per annum, shall be exempted from taxa
ton. Provision must be made TO prevent
the temporary loaning of money about
April first for the purpose of securing this
exemption from taxation.
This exemption will apparently relieve
from taxation $l5, 124, 500 90, the amount
of mortgages that is now apparently taxed
in the grand list of the state and S7,00S,-
07750, the value Of mortgage owned by
savings banks and trust companies, that
now pays a direct state tax To make up
the deficiency caused in the grand list by
this exemption 1t is recommended that the
present exemption Of personal property
from taxation on account of debts owing
be done away with. This would bring
into the grand list approximately $50, 600,
900 worth Of almost wholly visible proper
ty that could not escape assessment to fill
the place Of the SIS, l24 ,596 80 cash which
can easily evade taxation that it is pro-
posed to exempt.
The exemption of the deposits of saw
| ings banks and trust companies invested
in real estate mortgages as proposed above
would result in large decrease in the dl-
rect revenues OF the state. To meet the
deficiency thus created 1t is recommended
that those provisions Of the present cor
poration tax law which allow the payment
of a certain per cent of gross receipts in
lieu Of an assessment of a corporations
property be repealed, that proper apprais.
al Of the corporations property be made
each year and that ii be assessed at a rate
equal TO the average rate of the taxation
Of property in the grand list throughout
the state. This would result in large In
crease in the direct revenue Of the state as
under the present corporation tax law that
class of property can be taxed only seven
mills on the dollar and the fact that the
corporations choose TO pay the fixed rate
upon their gross receipts would indicate
that this form of the corporation tax is
even cheaper than an appraisal and assess
ment of the tax Of seven mills on dollar.
The injustice Of the present system of tax
ing corporations is evident when it is re-
membered that property placed in the
grand list is paying more than double this
| rate of taxes.
The beneficial results which your COM
mittee believe would follow the proposed
changes are as follows:
The borrower would get relief equal TO
the extent to which mortgages are now
taxed on every dollar he borrows through
the reduced rate of interest, no matter
whether he owns personal property or not.
Each tax payer would be assessed upon
all property in his possession whether it
be real or personal.
No exemption of property is allowed
unless its possessor first fulfls certain con-
ditions which guarantee to the debtor class
its proper share of the benefits to be de-
rived from such exemption.
The exemption Of visible or tangible
property, which cannot escape the tax as
SCISSOR, is stopped and only the exemption
of an intangible class of property, the
taxation of which is very unequal at best,
is allowed.
No visible personal property in town
would be exempted from taxation because
its pOssessor owes q resident Of some other
town whose property is not taxable in the
town where the exempted personal proper
ty is located. In other words all the Wis =
BILE property in a town would be subject TO
local taxation, and so reduce the rate OF
local taxes.
Appointments In the Legislature.
At 4