The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-07-29

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 recon-
mendation stated below.
The subject of Offset is discussed at
some length. 1t appears that only
five other states permit Offset against
all tangible personal property. Off
sets have been increasing In this
state the amount allowed In 1907 be-
ing about $33,000,000. In the same
year over $2,O00000 less personal
property was taxed than in 1881, when
the present law went into effect and
$6,000,000 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 is believed to be impracticable
It is believed that the repeal of the
offset law would add more than $40,-
100000 to the grand list and result
in a substantial decrease In the aver
age rate of local taxation.
Four of the commission recommend
the unconditional repeal of this law,
while Messrs. Pierce and Olmsted re-
commend the repeal upon condition
that money loaned on mortgage for
"a time not less than one year at rate
lof interest not to exceed four and one
half per cent. be exempted from taxa
ltion. The other members of the com
mission are opposed to this last ex-
lemption.
Mcssrs. Barber and Hitchcock rec
commend that substantially all intan-
lgible property such rs stocks. bonds,
notes and other securities, including
stocks in foreign corporations be tax
ed at a uniform rate throughout the
Istate of five mills on the dollar Of the
appraisal. This plan would reduce
to five mills on the dollar the tax paid
by savings banks on their average de-
posits.
Messrs Pierce and Olmsted oppose
this recommendation. Mr.. Slack
!agrees thereto, except as 1t applies 20
stock In foreign corporations taxed
where the corporation is located. Mr..
Senter, while agreeing with the first
two members that low uniform rate
of taxation on this class of property
is the most practical and Just system.
is not fully pursuaded that the time
has come to adopt the plan to the eX-
tent recommended.
He recommends that such debts
lonly as are secured by mortgage upon
real estate in Vermont without regard
to where the mortgage resides be
taxed to the mortgage and paid to
the town where the land lies at the
uniform rate of seven mills on the dol
lar
There is a full discussion of the tax
alton of intangibles In the main re-
port. 1t is pointed ont that the at.
tempt to tax this property at the same
rates at which tangible property IL
taxed, everywhere proves failure
The average local tax rates when ap
lplied to intangibles, result In the own
er paying a 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
Pennsylvania has taxed intangibles al
low uniform rate of four mill.
throughout the state for some thirty
years and the amount OF such proper
lty so taxed has steadily and substan
TALLY increased.
Maryland began taxing intangible!
lat the low uniform rate of about foul
and six-tenths mills some lively,
Years ago. Before then the tax rat
there was about two per cent. From
1896 to 1907 the amount of intangible
taxed in the city of Baltimore increas
led from $6,000.00O to $3.50 100000.
1t is shown on the other hand tina
III Vermont, and in substantially al
other states where intangibles ar
taxed ut the same rate as other prop
Ierty, there Is no substantial increas
In the amount of such property taxed
Ohio and New Hampshire are mer
toned as notable illustrations of thi
fact.
Many other facts and argument
are presented which tend TO supper
this plan of taxation, and the Opinion
, is expressed that in no other name
Twill Vermont ever be able to success!
fully tax this class of property.
The constltutionality of such lay
lis discussed and the opinion express
ed that 1t Is constitutional
The loss to the state in the saving
, bank tax II the five mill rate Is adCp
ed is considered and reasons give
why such probable loss will not ne,
essitate direct state tax
The entire commission report ths
, whenever a greater state revenue
, required a direct inheritance tax is
proper source from which to obtai
the same and the collection of bus
ness tax from foreign corporations d,
ing business in this state is recon
mended.
Methods for the appraisal and Ia,
alton OF timber and timber lands di
ferent from those now in force al
! discussed and immediate legislatiy
action on this subject urged.
Facts are presented which clearl
|, set forth the heavy burdens of del
and taxation resting upon many of tn
poorer towns, but o>reCUmmendatlo
as to legislation on this subject
made by the majority.
, Four members of the commissio
: recommend that no change be mad
at present in the taxation of insu
, ance companies and public serviC
, corporations, They believe that, IL
law on this subject having recent
been revised, and the tax rates
= many cases increased. these compa
: les are entitled to reasonable perma
ency in the laws under which they o
> crate. Further the existing Law
), seem to be operating we'll and cor
pare very favorably with the tax Law
y of other states on this subject
Messrs Pierce and Olmsted are
" the opinion that the present law gi
:, ing the option to railroads to pay
, TOW haca1 npnp thafr urppcy oarY, In