Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1901-12-12
A FRANCHISE TAX.
Bill to Be Introduced in the Mary
land Legislature.

LIlCotI Clty, MI, bSC- O--N IL
liam Henry Forsythe, Jr., member,
elect of the house of delegates for
Howard county, says:
''The question much discussed of
late as TO the taxation of public
franchises or easements is one with
which the average business man is
not familiar, and it is only after a
careful study of our tax system that
one realizes the vast amount of prop
erty that is now entirely free from
taxation.
"A measure that l propose to intro
duce in the coming session of the leg
islature will be drawn on the lines of
the Ford bill, recently passed by the
New York assembly and signed by
Governor Roosevelt. The principle of
taxation which it adopts has been ad-
vocated by George Stewart Brown
before the city council of Baltimore.
'"The scheme of the proposed meas
ure is that all persons or corporations
possessing public franchises shall be
assessed in the same proportion to
their salable value as are the farm
lands and city real estate. 1t is a
simple and direct proposition and
should have the support of all who
are interested in fair and just tax
alton. 1t will give relief to the over
burdened taxpayer and put all in the
same class, with special privileges to
none.
'In New York the statute taxes this
class of property as real estate, and
in Michigan and Illinois it is assessed
like other property. If it has worked
well in those states and has benefited
the taxpayers, there is no reason why
we in Maryland should not receive the
same benefit when doing so would
only be utilizing all of our resources
for taxation to which we have a right
to claim and the resort to which in
wolves no violation of sound public
policy.
''In order to thoroughly understand
the question raised by the public fran
chise or easement tax law
one must have a clear concep-
ton of the distinction between cor
porate franchise, which is simply the
right to exist and do bus
mess as a corporation. en-
joyed by all corporations
alike, and the so-called public fran
chise or easement, such as rne right
acquired to construct and operate a
ro;1 ho CT ~f nj
which is a species of valuable prop
erty received from the community.
"a public franchise or easement is
held and enjoyed by every public
service corportion enjoying right
or privilege in the public highways in
addition to it's corporate franchise.
There are numerous decisions by the
courts clearly recognizing the marked
distinction between the franchise to
construct and operate railroad on a
public street or highway, which fran
chise is absolute property, independ-
ent of the existence of the other cor
porate franchises, such as is enjoyed
by all trading companies.
'"The bill will have no special bear
ing on corporate property as dis
tinguish it from property owned by an
individual 1t will amend our pres
ent tax law so as to include special
franchises consisting of rights and
easements in the public streets and
highways in the enumeration of real
estate subject to taxation by using
the following language: Including the
value Of all franchises, rights or per-
mission to construct, maintain or
operate public utilities in, under or
above, on or through the streets, high
ways or other public places
THE proposed bill does not change
the plan or scheme of the present tax
law; it simply includes in the real
property subject to taxation the in
tangible public franchise, and there
by adds to the list of taxable real
1t does not create single new tax
official, but the valuation of the new
property brought in by it will be
made by the local and state boards
as now provided by law. The bill in
terests and affects the people of the
entire state, because the taxable
basis Of the counties and the cities
where such public franchises are
operated would not only be largely
increased, but the state would also
collect her full share Of the proceeds,
which would go toward the reduction
of the state tax.
Summed up, therefore, the bill will
simply provide that the privilege of a
private citizen personal or corporate)
to use real estate belonging to the
public, such as water fronts, parks and
streets, should be considered as real
estate at the locality where such is
used and the value of such privilege
be included in the local assessment
against such individual Of his taxable
real estate to the end that such
property shall be assessed and taxed
for state, county and municipal pur-
poses as are the farm and city home
stead :"