Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-05-11
STATE HOUSE.
Tax On Trust Companies Will
Show Gain.
Plans for Renovating South Wing
Nearly Ready.
Same General Style Will Be Preserved
in Executive Chambers.

The semi-annual returns of the saw
ings banks, trust companies and loan
and building associations, for the pur-
poses of taxation, have been received
at the office of Hon. f. E. Timberlake,
State bank examiner. AS soon as they
are tabulated and carefully gone over
they will be given to the State Board of
Assessors, which will commit the taxes
thereon. This duty must be done with
in 80 days from the last Saturday in
April, which will bring the commit
ment of the taxes about some time
early in June.
AT this time it is impossible to give
my estimate of the difference in the
amount of the tax on savings banks,
because of the reduction in this tax
which the Legislature authorized. In
a few weeks, however, the information
will be obtainable, and it is believed
that the estimate made, last winter,
while the bill was under discussion, will
not fall short of the mark.
1t is evident that the increased tax
alton on trust companies will be much
larger than was estimated, last win
ter, at the time the law was changed.
Cor instance, one company which, last
year, paid total tax of about $S0OG
will pay about $4,000 the present year.
The IA trust companies of the State
)aid the sum of $22,6 in taxes for
he year 1902, but if all of them have
made the same ratio of gain in de-
9osits as the institution referred to
tboVe, the total tax, this year, will be
rom $4,000 to $4,000.
The law of 1901 provided that Il tax
II cne-half of l per cent. be paid by
very trust and banking company in
corpOrated under the laws of the State
IN the average amount of its time in
terest bearing deposits, after deducting
IN amount equal to the amount of
United States bonds, the shares of
corporation stocks, such as are by law
Of this State free from taxation to the
stockholders, and the assessed value
Of real estate owned by the company.
When this law was under discussion
here was a great deal of argument
concerning the meaning of the word
time" but the 10th Legislature passed
he bill and it became Il law.
Under it's operation, however, the
trust companies were able to avoid
payment of any tax upon it's demand
interest. 50 the Legislature of 1903
'epealed the law of two years ago and
enacted in its place law that places
a tax of one-half of l per cent. upon
he average amount of time deposits
and deposits bearing interest at the
rate of per cent. or more per annum.
The same exemptions are in the new
Jaw, so far as United States bonds
and corporation stock free from tax
ltion, are concerned; but the exemption
If the assessed value of the real eS-
cate owned by the companies does not
appear. This is accounted for by the
act that this exemption is provided
or in another law, through the means
IF which the municipal tax paid on
zeal estate is divided from the amount
| assessed against the owners of stock
| in the companies. The law of 1901
authorized this deduction to be also
made from the average deposits, so
that the trust companies got two de-
| auctions on account of their municipal
| taxes on the real estate owned, instead
If one deduction. as the trainers of
| he 1901 law contemplated.