Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1908-07-30

plan would reduce to i've mills on the
dollar the tax paid by savings banks on
their average. deposits.
Messrx. Pierce and Olmsted oppose
this Recommendation Mr.. slack agrees
thereto. except as IT applies TO stock in
foreign corporations taxed where the
corporation il located. Mr.. Senter,
while agreeing with the first two mem
beers that low uniform rate Of taxation
on this class of property is the most
practical and just system, IL not fully
persuaded that the time has come to
adopt the plan to the extent recon-
mended.
He recommends that such debts only as
are secured by mortgage upon real estate
in Vermont without regard to where the
mortgage resides, be taxed 10 the mort
gagee and paid to the town where the
land lies at the uniform rate Of seTen
mills on the dollar.
There is a full discussion of the taxa
ton OF intangibles in the main report.
II Is pointed out that the attempt TO tax
this property Mt the same rates at which
tangible property is taxed, everywhere
proves failure. The average local tax
rates when applied to intangibles, result
In the ownsr paying tax thereon at the
rate OF from twenty-five TO sixty-six and
two thirds per cent. of the income from
the same, which Is confiscatory. Penn
syIyania has taxed intangibles at a low
uniform rate of four mills throughout the
state for some thirty years, and the
amount OF such property 20 taxed has
steadily and substantially increased.
Maryland began taxing intsngibles at
the low uniform rate OF about four and
six-tenths mills some twelve years ago.
Before then the tax rate there was about
two per cent. From 1895 to 1907 the
amount of intangibles taxed in the city
OF Baltimore increased from 5000, 900 to
$3.50, 200, 900.
II is shown on the other hand that in
Vermont, and in substantially sll other
states " here intangibles are taxed at the
same rate as other property, there is no
substantial increase in the amount OF
such property taxed. Ohio and New
Hampshire are mentioned as notable
illustrations of this fact.
Many other facts and arguments are
presented which tend to support this
plan OF taxation and the opinion IL ex-
pressed that in no other manner will Yer
mont ever be able to successfully tax this
class Of property.
The constitutionslity OF such a law is
discussed and the opinion expressed that
IL IL constitutional.
The loss TO the state in the savings
bank tax If the five mill rate l. adopted
is considered, and reasons given why
such probable loss will not neeessitste q
direct state tax.
The entire commission report that
whenever a greater state revenue il re-
quired direct inheritance tax is q proper
source from which to obtain the same and
the collection of g business tax from
foreign corporations doing business in
this state ~ recommended
Methods for the appraisal and taxation
of timber and timber lands different from
those now in force are discussed. snd inn
rnedis legislative action on this subject
urged.
Facts are presented which clearly set
forth the heavy burdens of debt and taxa
tion resting upon many of the poorer
tow M but no recommendation a. TO iegis-
lstion on this subject il made by the ma
jority.
Four members OF the commission rec
ommend that no change be made al pres
ent in the taxation OF insurance COM
panies and public service corporations.
They believe that the Law on this subject
having recently been revised, and the
tax rates in many cases increased, these
companies are entitled TO reasonable per-
msnency in the laws under which they
operate. Further the existing laws seem
to be operating well and compare very
fsvorably with the tax laws of other
states on this subject.
Messrs- Pierce and Olmsted are OF the
opinion that the present law giving the
option TO railroads to pay a tax based
upon their gross earning instead Of upon
the appraised value of their property l.
an unjust discrimination in favor Of such
corporations and should be repealed.
In addition 10 the recommendations
made by them already mentioned. they
recommend that state tax be assessed
upon the franchise and property Of rail-
roads AT q rate TO be ascertaiDed by divid-
ing the total amount of taxes levied by
the total appraised value of property and
polls entered In the grand iists. The
State Tax Commissioner to ascertain the
rate, and to sppraise the railroad proper
~ at its full and true value in money.
They also recommend graduated in
come tax and express their opinion that
the proposed uniform low rate upon in
tangibies in unconstitutional; they vigor-
ously protest against the adoption OF the
same.