Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-05-15
STATE HOUSE.
49, -s
Difference Between Old and
New Bank Tax.
Schools in Unorganized Places Have
Increased Income.
Nineteen Veterans of Aroostook War
Have Asked for Pensions.


tune 2, when the regular meeting OF
hat month will occur. They also con-
emplate committing the telegraph
telephone and express taxes at the
anne time.
The change in the savings bank tax
aw which the Legislature, last win
er, adopted will be the basis used in
axing the banks this year. 1t will be
emembered that under the law of 1893
he rate of taxation was seven eighths
If per cent. upon the average amount
# deposits, reserve fund and undivided
Profits, after deducting therefrOm the
'alue of the United States bonds, the
hares of corporation stocks such as
ire by law of this State free from
axation to the stockholders, the as
'essed value of the real estate owned
~ the bank; and also an amount equal
one seventh of such other assets
oans and investments as was ac-
uired prior to Jan. l, 1898; likewise
IN amount equal to two sevenths of such
other assets, loans and investments as
by such statement appear to be loans to
persons resident or corporations locat-
ID and doing business in this State, in
Festments in mortgages on real estate
n Maine and New Hampshire, securi-
les of this State, public or private,
ponds issued or guaranteed by corpora
ions located and doing business in this
State. severally made, purchased or ac-
luired since said January first, and
llso an amount equal to two-sevenths
If the cash on hand and cash deposited
within the State.
AT the time this law was adopted, 10
years ago, the savings banks of the
State were investing in securities from
tut of the State. For the purpose of
stimulating the investment of bank
.unds in Maine enterprises this law was
enacted. If the banks, however, sold
their foreign securities acquired before
Ian. l, 1898, and reinvested in the same
lass of property no deduction would
be allowed; but if they purchased
Maine securities with the proceeds of
such sales the deductions would be
given them. The measure was intend
ed as a premium upon Maine securi-
ties as against those from other
states.
The law passed, last winter, however,
the banks in the matter of the taxation
on investments made in this State. 1t
not only cuts down the rate of taxa
ton from seven-eighths of one per
cent, to siX-eighths for this year and
to tive-eighths thereafter, but it in
creases the amount of the deductions on
the Maine investments. Before, the
deductions amounted to one-seventh on
all investments acquired prior to Jan. l,
1893. and two-sevenths on all Maine in
vestments. Now, under the new law
it makes no difference when the in
vestments were acquired there
is no deduction allowed unless they
are all made in Maine. So that,
an added incentive is given the banks
20 invest their funds in enterprises that
will be of benefit to the people of this
state, thus aiding in it's development
and advancement.
AS illustrative of the manner in
which the new law will work an ex-
ample is here given. This example is
based upon the five-cighths tax which
will be in vogue next year. Suppose
the assets of savings bank amount
to $3,000,000. Under the law of 1898
there would be deducted one seventh
of the amount of assets acquired prior
to that year, and two-sevenths of the
amount of Maine securities held. These
deductions would amount to $42S,571,
leaving the sum of $2,571 1929 on which
the tax at seven eighths of l per cent.
would amount to $22,499.96
Under the law recently passed, using
q n
with, the following would be the re-
suit, presuming, however, that the Sc
curities from without the State shall
have been invested in Maine securities:
Deducting two-ffths from $4,000, 900,
the amount of the value of the Maine
investments. from $3,000.000 the assets
of the bank there would be remaining
the sum of $2,200,000. upon which a tax
of five-eighths of / per cent. would
be assessed, amounting to s13,750.
Thus it will be seen that the new
law will save each year TO the bank
having assets and securities similar to
the above the difference between $22,-
1896 and $3.50, or $S,749.96.
AS soon as the assessment is made
for this year. which will be at the
rate of siX-eighths of l per cent, it
may be ascertained just what the saw
ings banks of Maine as a whole will
gain and what the revenue of the State
will lose under the operations of the
new law.
Hon. N. A. Luce of Vassalboro. who
has charge of the schools in morgan
lied townships. is preparing to visit
them. as is his custom each year. He
will begin his visits about the first
of June. The State began appropriate
ing money for the support of these
schools in 1899 and for that and the fol-
lowing year the sum of $500 each was
appropriated for the purpose. For each