Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1908-07-30
TAXATION COMMISSION REPORT.
Findings Of the Body That Hes Been
lnvestIO atino Tax Questions.

lnvestl0 otino Tax Questions.
The report of the commission on taxa
ton, authorized by the last legislature to
inquire into and suggest remedies for
correcting the evils Of the present taxa
ton system in Vermont has been made
public. The report contains brief bis
tory OF taxation in Vermont up to 1850
when the tax laws now in force we're In
substance enacted.
Under the heading Of administrative
evils the report marshals numerous facts
demonstrating that there are frequent
and fragrant violations OF the law by both
listers and taxpayers; that less than
three per cent. of all the inventories on fiie
are filed out as required by law; that
many taxpayers file no Inventories; and
that IL the law were enforced that i'm
poses penalty OF 5000 upon lister for
accepting an inventory not properly
made out. the forfeitures thus incurred
would In 1907 be over go, 900, 900.
ltis shown that real estate Is now APP
praised on the average through the state
at not more than seventy per cent. OF its
value. instead of at its true value as re-
quired by law; and that as result the
state school and state highway taxes yield
in the aggregate $4,000 less than would
be received IL the law were complied
with. As to personal property the con-
difions are even worse.
The experience OF other states on this
subject is briefly given.
The creation OF State Tax Commits
sion of three members is recommended.
OF which the commissioner Of state taxes
for the time being shall be chairman.
This tax commission to have control OF
all administrative matters relating to
taxation for state purposes, with super
visory powers over the listers, and with
authority to equalize their appraisais.
This commission also to have power to
sppraise the stock and bonds OF domestic
corporations which are now appraised by
the listers, and in addition to be charged
with the duty OF formulating blank in
ventories for the use of the taxpayers.
The report finds that the law regulating
the appraisal OF stock in domestic cor
porations is practically imperative, and
that such stock largely escapes taxation.
As designed to produce an improved
local administration of the law II is
recommended:
That listers be elected for a term OF
three years and by ballot.
That separate appraisals be made OF
land and OF buildings thereon, as tending
to promote legal and uniform appraisals.
That the individual inventories of the
taxpayers be filed for public inspection
before the completion Of the grand list.
That the Taxpayers be compelled to re-
turn their inventories on or before the
tenth day OF April annually and that fail
ure so to do be punished by doubling and
assessing substantially as the Law now
provides.
That the listers be given authority TO
-.
OF whether any taxpayer has made a COM
piete inventory Of his taxable estate.
That the discount for payment OF local
taxes be abolished, that all taxes be
paid in full on or before a day fixed and
that an interest penalty be added for de-
lays in payment.
To ascertain the value of exempt real
estate il is advised that the same be APP
praised at the next quadrenniai appraisal.
The question OF double taxation is fully
discussed in the report. II il pointed out
that the popular conception limited il
to the taxation of property Of a debtor
and OF the loan made to him where that
loan is secured by mortgages Is an error;
that so-cslied double taxation exists, and
( the same injustice results therefrom-
wherever credits of any nature are taxed
without being Offset against tangible
property OF debtors.
The report finds that two supposed
remedies are frequently suggested in this
state, viz: To tax the mortgages in
terest as real estate. his credit to be other
wise untaxed, and the morfgsgor to be
taxed on his equity only; to exempt from
taxation mortgsged loans bearing interest
at a specified rate or less.
These propositions are carefully anal
yzed and it is shown that they would fail
to relieve the debtor class and would prob
ably introduce greater evils than now
exist.
Only two complete remedies, 1t l.
stated. can be suggested: to tax only
tangible property; to allow offsets
against all property both real and per-
sonsL Both of these propositions are
condemned.
Certain important facts are stated
which show that the evils resulting from
this phase of our taxation system are ex-
aggerated.
II is show that the farmer suffers a far
greater injustice through the escape of
large amounts OF personal property, both
tangible and intangible. OF other tax
payers by fraudulent Offset, under APP
praisal, concealment and evasion. These
evils II is hoped will be largely dimin-
ished il the recommendation OF the com
mission are adopted. As result the
grand list will be greatly increased and
the rate of local taxation reduced. This
reduction will bring substantial relief to
all who are now paying on all their
taxable property.
Messrs. Pierce and Olmsted differ from
the rest of the commission as to double
taxation and make a recommendation
stated below.
The subject of Offset is discussed at
some length. II appears that only five
other states permit Offsets against all
tangible personal property. Offsets have
been increasing in this state, the amount
allowed in 1907 being about s33. 600, 900.
In the same year over 81 900, 900 less per-
sonal property was taxed than in 1851,
when the present law went into effect,
and $4,000, 900 less than was taxed
twenty years ago. Instances of fraud
and evasions under the present law are
given. The opinion is expressed that
the only logical system of Offset is to
permit debts to be Offset against real
estate as well as personal property which
ia believed to he imnracf icahIe II Ia ha-