Perth Amboy evening news., 1905-11-17
STATE BOARD SUGGESTS
TAXATION REF R M.
System Affecting Banks and Trust
Companies Does Not Work
Satisfactorily.

TRENTON, Nov. 17:-The state
board of equalization of taxes, in it's
annual report now in the hands of
Governor Stokes, points GU various
defects and injustices resulting from
the present method of taxing finan-
cial institutions in the state.
From It's investigation of the tax
ing of savings banks, trust compan-
les and national and state banks, the
board is forced to the conclusion that
the system in vogue is not satisfac-
tory in its practical operation. 1t
therefore recommends the passage of
a new law which shall provide a uni
form method for taxing these classes
of institutions. In the criticism of
the present method the board gives
voice TO complaints that have been
made by various taxing districts
throughout the state during the year.
In pointing out the iniquities of the
present laws on the subject the state
board says:
The taxation of savings banks.
trust companies and national and
state banks does not work out salts
f%actorily in practice. The revised lax
act OF 1903-thc law under which
these corporations are assessed--per-
mits an assessment of the deposits in
the depositors, but in point of fact
this is rarely, if ever, done. This is
not altogether the fault of the asses
sors. 1t is the fault of the system,
which is impracticable. The real es-
tate of these corporations is assessed
to the corporations in the taxing dis
trict where located, under the act of
1908. This is sound and should be
retained, but it is practically all the
tax hat these companies pay, except
national and state banks, the shares
of stock of which are assessed to the
stockholders, under the two laws
passed at the session of the legisla-
ture in 1905.
These corporations are a class by
themselves. They all use capital and
do a business substantially in compe-
tition with one another, and they
should be taxed on some common
basis which is fair and just to each,
as between themselves, and equally
fair to the taxing districts in which
they do business.
ut would seem that with the con-
fiicting systems applied at present TO
these corporations, a law should be
passed taxing them all on the same
basis and by a like system. This
could be done by retaining so much
of the present law as taxes their real
estate in the taxing district where To-
Gated, and by a further tax based on
the deposits, in lieu of all other taxes
either to the ~depositors or on the cap
ital stock, surplus or shares. The
acts of 1883, which were held uncon-
stitutional on the ground of not be-
ing general laws, could be made the
basis of such a statute. or the act
taxing the Paterson Savings institu-
ton"
The state board also seeks in its
report to impress upon local boards
of assessors the beneficial results in
the direction of equalization of taxes
arising from the adoption of h sys-
TEN of assessing lands and buildings
separately. This plan, which was in
a%ugurated in some cities a few years
ago, is now being quite generally fol-
lowed throughout the tate, and al
though the board has not the data to
make an accurate report on the sub
iect, it expresses the firm belief that
wherever adopted the plan has prov
ed satisfactory.