Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-11-01
STATE HOUSE.
Savings Banks Tax Compared
With New York's.
Explanation Of Names Claim Pend.
ing Against the Government.
New Carpet for House of Representa-
tives Nearly Laid.

| the reduction of the savings banks tax
| by the incoming legislature is receiv-
ing the consideration of thoughtful
| men throughout the State The fact
mat the 81 savings banks Of Maine
| paid into the State treasury for the
! year 1901 the sum of $500, 733.42 in
| taxes is used as an argument that the
TAX is oppressive upon the depositors
Last year there We're 1892 depositors
IN these banks, with deposits aggregat
ing s10,293,93S.39, so that the tax
| averaged $2.56 to each depositor. II is
| argued that this assessment. although
levied against the banks is virtually a
! tax upon the depositors themselves
Tor If it was not exacted from the in
stitutions the money could be used in
giving depositors a larger rate of in
| terest.
1t is contended that other states as
general thing do not impose so heavy
| a tax upon savings banks as Maine
does. For instance New York saw
lngs institutions only paid total of
| $'o3,333.I3 in taxes to the state for the
year 1901. And yet the deposits i'm the
| banks of that state amount to $1,O14,-
305,S5L This is only an average of 20
ceHtS 10 eacn depOSltOr.
The system of assessing the tax in
New York is different from that i'm
vogue in Maine. In that state the law
provides for tax of one per cent. on
| the surplus based upon the par value
| of the securities. This tax is laid not
| on the deposit or the depositor, but on
| the accumulated surplus and in such
! manner that it does not affect the reve-
nue. paid to the depositors nor the
| prosperity of the banks. The law
| leNleS the tax on the surplus, not from
| the market value or worth of the Sc
curities but from the par value. This
| surplus on the Par value of securities
in 1901 amounted to 500, 400, 1882, bat
| the controller of the state ruled that
the accumulated interest must be con-
| sidered so that the total tax amounted,
as stated above, to sos, 333.13
In Maine, however, the tax is derived
! from levy upon the value of the sew
| eral franchises of the banks, after de-
| Quoting the amount of United State
bonds; the real estate owned the
| shares Of corporation stock such as are
| by law of this State free from taxa
| ton to the Stockholders; one-seventh
| Of the assets, loans, etc, acquired be
| fore Jan. I. 1899: two-sevenths of the
| loans made to concerns doing business
| in the State. investments in mortgages
| on real estate in Maine and New
! Hampshire. and of the cash on hand
/ or on deposit in the State. After al
/ these various sums are deducted a tax
| of thrce-eighths of one per cent. is
/ levied upon the value Of what is left.
4 1t is 4 more complicated rule thar
/ that of New York, but by its provisions
Il the banks Of Maine are required to pay
into the treasury of the State IN
i amount of money nearly nine times
| greater than the banks of the great
| State Of New York are obliged to pay
into that State treasury, as compared
| with the total deposits in the banks OF
| the two states.
| If the Same rule prevailed in this
| State It may readily be seen that tbs
| income would be greatly reduced. A
| tax of one per cent. upon the surplus
| based upon the par value of the securi-
ties owned by the Maine Savings banks
| would not produce Il very large reve-
| nue.. And it is not likely that the saw
| ings banks of Maine will ask for sucl
In sweeping change in the tax law as i:
now applicable to them but that they
will ask for a reduction in the present
rate is pretty definitely determined
upon.
.. hn mo h.. RI 70 ranpiUa1 :