The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1901-01-17
State Taxation.

The taxation problem is one that dis
turbs the serenity OF Legislators at Au
gusta, this winter. The State must
have greater revenue or run behind. IL
now has about all the temporary in
debtedness 1t can contract with safety,
the people would kick lively at an In.
crease of the State tax on real and per-
sonal property above "a mills and
tbere6rre other sources of revenue
mAstsbe found or The tax no,. frs-vr
creased on property already taxed.
This proposition is not free from diff
culties. The moneyed institutions of the
State bear very high tax now. A tax
Of three-fourth per cent upon deposits
In Maine saving institutions, in these
times when 1t is difficult to get gilt
edged securities that will pay more
than 3 per cent, is q high one and saw
ings banks are liable to be obliged To
materially reduce their dividends below
the present figures even at the present
rate of taxation.
1t is generally conceded that the tax
on railroads may be raised. Managers
on the Maine Central admit 1t, but the
extent of this advance Is the issue.
Propositions are made in regard to other
property but the principal difficulty is Ia
get enough to meet the exigencies of the
case, enough to provide for the deficit OF
revenue.
There is an idea prevalent that real
estate is to be relieved of taxation, some.
what, by measures to be enacted this
winter. Ii this Is done 1t must be by q
tax law that will provide for equalizing
the taxable valuation of property in the
towns, and must come through assessors
of cities and towns. The principal
trouble is that more or less property
escapes taxation entirely and this makes
the burden come upon real estate, and on
personal property that is open to the view
of all. The present law provides for
taxation of mortgages, notes, stocks,
bonds, etc., which come near escaping
taxation altogether. Assessors may re-
quire property owners to give in a
schedule of this property and put them
under oath to disclose their whole prop.
erty, but this is seldom done and thus
the intent of the law is not carried out.
II all classes of property In towns
were equitably taxed in these towns the
hardships of the situation would be
greatly mitigated and the burden on
real estate much relieved. The average
taxation in towns In Maine Is two cents
on the dollar of valuation. A little over
one eighth of this is the State tax,
Therefore any possible action Of the
State can effect this fraction of the tax
of towns, only. Were the whole State
tax removed the rate of taxation would
be Que cent seven and one-fourth mills
instead of two cents. Beside one mill OF
this "a mills Is returned to the towns in
the State as a school fund In proportion
to the scholars In the different towns.
Thus the State tax on an average, aside
from the school mill tax, is but IA mills
on the dollar In all the towns and cities.
1t 1t will be seen that the State tax
counts but small fraction OF the tax
assessed upon towns. The county tax
takes another smaller fraction and The
balance depends upon appropriations OF
the towns voted In the annual meetings
and 10 cities upon those voted by city
governments.
1t Is desirable to relieve property from
taxation as far as possible and the action
of the present legislature may prevent
an increase of taxation upon real estate
and the general linea of personal prop
erty that have borne more than theil
share OF the burden, but we can see nj
possible way by which taxation of thil
property can be reduced by any prob
able or even possible action of thil
legislature, only so far as 1t shall enact {
law that will make 1t obligatory upor
assessors to dig out and tax all classes
of property. The legislature will have
formidable job to get revenue enough
to run the State, its many institutions
educational interests and government
without elevating the State tax instead
Of reducing it.