Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1907-05-24
A COMMISSION TO REVISE TAX
LAWS.

~ " prfbcIay AppoAcbt bOLn ADc pOUbC
discussions that have been in progress from
time 70 time that the tax laws Of Maryland
should be subjecied to searching inquiry
BY competent persons, with q view TO de-
termine whether general revision 10 or is
NOT necessary. II is eight months before
the General Assembly meets, and something
should be done daring those nonibs Per.
sons who have any acquaintance with the
conditions which surTound the Legislature
while 1t is liz session can readily understand
tbA4 II any inquiry into ibe tax laws IL TO be
made, the work must be done and the bill,
II any, 70 be passed should be prepared 10
advance. In 1885, when there was q gen.
eTal elamor throughout the State for new
assessment Of property, the Legislature
authorized, BY Chapter 486 Of the acts of
that session, the appointment by the Gov
ernor Of 3 commission Of four persons TO
prepare report on the subject Of taxation
and 10 serve without pay. This commission
ws- c"nposed Of Hon. John Prentlss Poe,
hoa.' ames Alfred Pearcs and Prof Ely,
p zee Hopkins. Judge McSherry was also
spDa lied d member, but he did not act.
TIE III reported BY the Tax Commission
was modified and introduced into The Sen
ate by Senator Thomas @. Hayes and be-
came the celebrated "Hayes Assessment
BILL" which was enacted ~ the Legisls.
tore and vetoed by the Governor At the
session OF 1896 ii was again introduced by
Mr.. Bankard, Of the House OF Delegates,
and, after radical changes had been made,
], was enacted. approved by Gov Lowudes,
and is on the statute books OF the State to
day.
Alter the Bhnkard bill had been passed
by the Legislature and before its approval
by the Governor the late d. r. Newcomer
suggested certain supplementary acts regu.
ianng the assessment and taxation Of securi
ties. One Of ihese acts has been under dis
cussion for some time, and there lie demand
In some quarters for its modification. At
the banquet OF the Credit Mems Association
10 Baltimore recently one Of the speakers
declared that ait has been a great draw back
TO Baltimore In getting corporations to come
here, as the present mode OF taxation almost
malaes 1t probibitive for them TO locate here"
Under the existing law OF Maryland stocks
OF foreign corporations owned by citizen
oil this State "are assessed aud valued at their
actual value in the market, and those upon
which no dividend shall be actually paid
shall not be valued at all, and upon the
valuation 80 made the regular rate of taxa.
ton Tor State purposes shall be paid, and
here shall also be paid upon such valuation
% cents, and no more, on each 800 for
couniy, city and municipal taxation" I'm.
der this law the stock Of company incor.
porated in Delaware, New Jersey or any
State other than Maryland Is taxed now at
46 cents on the 500. while the stock Of a
company chartered under the laws OF Mary.
land, II held in Baltimore, is taxed at more
than four times az great a rate. The reason
that caused Mr.. Newcomer to recommend
this discrimination was the fact that in many
States where the home Office OF company
Is located the whole capital stock is taxed
and If such as Is held in Maryland was To
be taxed at the full rate here nothing would
be left for the owner. But result followed
the enactment OF the law which had no,
been anticipated. In order to get the hene.
fit Of the lower tax rate on their stock II has
become 3 common practice for Marylanders
70 go 10 another State for their charters, even
when the entire business Of the company ID
10 be transacted IN this State.
Thia IL ona faatnra If Tho IT, H., a..
Is thought TO need consideration. There
has also been much recent discussion of the
methods Of valuation by the State Tax Com,
missioner and the right Of appeal from bis
decisions, about the method Of taxing fran.
ehises and other matters which are coming
PIP from time TO time, some Of which are
now 10 The courts Of Montgomery county.
1t might be well, In view OF all these con.
alterations, for the Governor to consider
whether be should not take the initiative
and select several competent lawyers and
business men and request them 10 study the
subject and make report to the Legislature
through him next winter. There may be
no authority Of law to pay such a commits.
sion. But il good service is done to the State
the Legislature would doubtless be willing
10 pay for 1t.
1t lie true that the subject is partially
covered in a bill prepared by the Corpora.
Hon Commission appointed by Governor
Smith and which was introduced into the
Legislature at the last session, but which
failed Of passage. The enactment OF that
voluminous and in many respects most ex.
celleni measure seems 90 uncertain that il
might be best 70 deal with the subject Of