Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1906-10-19
TO REMEDY DOUBLE TAXATION
J. H. MerrHeId Suggests What Seems to
BE a Feasible Plan for Allowing an
OFFSET for Real Estate indebtedness.


offset for Real Estate indebtedness.
OF the various remedies suggested for
the double taxation evil none would seem
to be more practical than that Of allow
ing offsets for real estate mortgage in
debtedness against the real estate secur-
ing such Indebtedness in all cases where
the mortgages are held and are taxable
in the state. 1t is the unwrltten law to
be sure, that real estate is the basis of
taxation and must be kept intact for
that purpose.
1t may be of interest to note the COM
paratively small extent to which this law
would be set aside should real estate
exemptions be granted to the extent
above suggested.
The report of the inspector OF finance
for the year ending June 30, 1906, shows
that the total amount of mortgages held
on real estate in Vermont on that date
by the savings banks and trust companies
of the state was $40, ,091, sos. Conservative
authorities in financial matters express the
opinion that the Vermont real estate
mortgages held by other corporations and
by individuals of the state will not ex-
ceed 25 per cent. of the amount held by
the banks. II this view is correct, Ver-
monts real estate mortgage Indebtedness
held in the state would not exceed
$12, 2,614,SS2 The grand list Of Vermont
for 1905 included real estate to the APP
ent, therefore, that the entire amount
of real estate in the state liable to be
affected by the plan of real estate ex-
emptions is approximately 10 per cent of
the whole. Should this entire amount
drop out of the grand list in the shape
of real estate 1t would practically all be
subject to taxation under present law as
real estate mortgages.
The large amount of personal property
now exempt on account OF real estate
Indebtedness should find its way into the
grand list under the plan of real estate
exemptions. This would form a material
Offset to the amount of real estate that
would escape the grand list under the
same plan. Still IL must follow that the
grand list of the state would suffer a
considerable reduction should the change
be made. But it is conceded by every
one that double taxation is wrong.
Shall we refuse to right the wrong be-
cause 1t Is easier or more expedient to
sanction it?
1t will be said, of course, that as real
estate mortgages are so largely held by
the savings banks they will not so fully
bear the burden of local taxation as does
other property. The same may be said
of the much larger amount of money de-
posted in the savings banks from nearly
every town than that towns real estate
| mortgage Indebtedness represents. But
II has come to be better understood than
Formerly InaI Ine property WHICH takes
care of the state expenses, and thus
wards off a good sized state tax which
would otherwise be imposed, just as fully
| bears its burdens as the property which
contributes directly to the support of
schools and highways.
1t will further be said in objection that
somebody may build a brick block or a
factory, partly with the aid of borrowed
| capital and that the town in which 1t is
| located will not be able to tax the whole
| of it. 1t is fair to suppose that the
various boards of trade in the state, now
taking on new life, will soon be looking
| for such people If they are not already
| doing So
To sum up: Set all personal property
in the grand list at full value, less the
Indebtedness on the same. Appraise all
real estate at it's real value as the law
contemplates, allowing the owner ex-
emption on so much of 1t as secures a
mortgage held and taxable in this state
and setting the balance to the owner in
the grand list There may be valid OBJ
iections to this plan. There would be
many details to work out in forming 1t
into law. Would it not quite fully do
away with double taxation as applied to
the large class who own only a portion
of their farms and village homes and
are paying taxes on the whole?
]. H. MERRIFIELD.
IA bill introduced in the present legis-
lature, intended as a remedy for double
taxation, differs from Mr.. Merriheld's
plan in that it provides for an offset
against real estate of ali personal in
debtedness, while Mr.. Merrifield proposes
to exempt only indebtedness on account
of real estate and would conflue the ex-
emption to mortgages hel6 in Vermont
Ed. Phonix1