Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1908-08-05
re opposed to this last exemption.

MeSSrS. Barber and hitchcock rec
ommend that substantially all intan-
gible property, such as stocks, bonds,
notes and other securities, including
stocks in foreign corporations, be taxed
at uniform rate throughout the state
of five mills on the dollar of the ap-
praisal. This plan would reduce to five
mills on the dollar the tax paid by saw
ings banks on their average deposits.
Messrs. Pierce and Olmsted oppose
this recommendation. Mr.. Slack
agrees thereto, except as it applies to
stock in foreign corporations taxed
where the corporation is located. Mr..
Senter, while agreeing with the first
two members that uniform rate of
taxation on this class of property is
the most practical and just system, is
not fully persuaded that the time has
come to adopt the plan to the extent
recommended.
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
to the mortgage and paid to the town.
where the land lies at the uniform
rate of seven mills on the dollar.
There is full discussion of the tax
alton of intangibles in the main re-
port. 1t is pointed out that the at
tempt to tax this property at the same
rates at which tangible property is
taxed, everywhere proves a failure.
The average local tax rates when ap-
piled to intangbles, result in the own
er paying tax thereon at the rate of
from rs to &c 2-3 per cent of the in
come from the same, which is corfs-
catory. Pennsylvania has taxed intan-
gibles at a low uniform rate of four
mills throughout the state for some
80 years, and the amount of such
property so taxed has steadily and sub
stantially increased. Maryland began
taxing intangibles at the low uniform
rate of about four and siX-tenths mills
ONE IL years ago. Before then the
tax rate there was about two per cent.
From 1896 to 1907 the amount of intan
gibles taxed in the city of Baltimore
increased from Sc, 900, 900 to $3.50, 000,
600.
1t is shown on the other hand that
in Vermont, and in substantially all
other states where intangibles are
taxed at the same rate as other prop
erty, there is no substantial increase
in the amount of such property taxed.
Ohio and New Hampshire are men
toned as notable illustrations Of this
fact.
Many other facts and arguments are
presented which tend to support this
plan of taxation, and the opinion is eX-
pressed that in no other manner will
Vermont ever be able to successfully
tax this class of property.
The constltutionality of such law is
discussed and the opinion expressed
that it is constitutional.
The loss to the state in the savings
bank tax if the five mill rate is ad-
! opted is considered, and reasons are
given why such probable loss will not
necessitate direct state tax.
The entire commission report that
whenever greater state revenue is
required direct inheritance tax is a
proper source from which to obtain the
same and the collection of a business
, tax from foreign corporations doing
business in this state is recommended
/ Methods for the appraisal and taxa
ton of timber and timber lands differ
ent from those now in force, are dis
, cussed, and immediate legislative ac-
ton on this subject urged.
Facts are presented which clearly
set forth the heavy burdens of debt
, and taxation resting upon many of the
poorer towns, but no recommendation
az to legislation on this subject is
, made by the majority
' -Four members of the commission
! recommend that no change be made at
D present in the taxation of insurance
r companies and public service corpora
tlOns. They believe that, the law on
this subject having recently been re-
viSed, and tax rates in many cases in
I creased, these companies are entitled
, to reasonable permanency in the
9 laws under which they operate. Fur
q Their the existing laws seem to be op-
;. Grating well and compare very favor
ably with the tax laws of other states
on this subject.
y Messrs. Pierce and Olmsted are OF
the opinion that the present law Civ
ing the option to railroads to pay tax
4 basedUpOn their gross earnings instead
4 of upon the appraised value of theil
g property is an unjust discrimination in
favor of such corporations and shoulC
G be repealed.
v In addition to the recommendation
. made by them already mentioned, they
>. recommend that state tax be assessed
q upon the franchise and property o:
railroads at rate to be ascertainet
4 by dividing the total amount of taxe
q levied by the total appraised value O.
), property and polls entered in the CRANE
lists. The state tax commissioner t.
{. ascertain the rate, and to appraise tn
= railroad property at its full and tru
~ value in money.
!; They also recommend a graduated in
- come tax and express their opinio
~ that the proposed uniform low rat
- upon intangibles is unconstitutional
~ they vigorously protest against tn
~ adoption of the same.
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