Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1908-07-31

On their average deposits
Messrs. Pierce and Olmsied oppose
this Recommendation. Mr.. Slack agrees
thereto, except as il applies to stock in
foreign corporations taxed where the
corporation is located. Mr.. Seuter
while agreeing with the first two MEM
beers that a low 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 20
adopt the plan TO the extent recon-
mended.
lie recommends that such debts only
as are secured by mortgage upon real
estate in Vermont without regard 10
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 taxation
of intangibles in the main report. 1t is
pointed out that the attempt to tax this
property at the sans rates at which tan
gible property is taxed, everywhere
proves a failure. The average local tax
rates when applied to intangibles, re-
suit in the owner paying tax thereon
at the rate of from twenty-five to sixty
six and two thirds per cent. of the in
come from the same, which is confis-
catory. Pennsylvania has taxed in
tangibles at a low uniform rate of four
mills throughout the state for some
thirty years, and the amount of such
property so taxed has steadily aud sub
stantially increased.
Maryland began taxing intangibles
at the low uniform rate of about four
and Six-tenths mills some twelve wears
ago. Before then the tax rate there
was about two per cent. From 1896 Ia
1907 the amount of iutaugibles taxed
Ia the city Of Baltimore increased from
SG,OO0,000 to $50, 900. 900.
1t is shown on the other hand that in
Vermont, and substantially all Other
states where intaugibes are taxed at the
same rate as other property, there is M
3 Yl,G1u al Al.
such property taxed. Ohio aud New
Hampshire are mentioned AS notable il
lustratlons of this fact
Many other facts and arguments. ar,
. presented which tend to support thi
, plan OF taxation, and the option is ex
pressed that in no other manner vii
. Vermont ever be able to successful,
tax this class Of property.
The comstitutlouality of such law i
, discussed and the opinion expressed tina
, 1t is constitutional.
The loss to the state in the saving
7 bank tax II the five mill rate is adopte,
, Is considered, and reasons given VIII
; such probable loss will not necessitat
: a direct state tax.
The entire commission report tina
whenever greater state revenue is re
| qnlred direct inheritance tax is 4
proper source from which To obtain tn
} same aud the collection of business
tax from foreign corporations doing
; business in this state is recommended.
Methods for the appraisal aud taxa
ton Of timber aud timber lands differen
from those now in force, are discussed
. and immediate legislative action on thi
subject urged.
| Facts are presented which clearly So,
: forth the heavy burdens of debt anc
! taxation resting upon many of the poor
er towns but no recommendation as e
legislation on this subject is made d,
. the majority.
! -Four members of the commission re
commend that no change be made a
, present in the taxation of insuranc,
| companies snd public service corpora
, tons. They believe that. the law OF
= this subject having recently been revised
and the tax rates in many cases in
creased, these companies are entitled t.
reasonable permanently in the laws un
der which they operate. Further The
existing laws seem to be operating wei
and compare very favorably with tn,
tax laws of other states on this subject
Messrs. Pierce and Omsted are of tn,
opinion that the present law giving the
option to railroads to pay tax based up
on their gross earnings instead of upor
the appraised value of their property i.
an unjust discrimination in favor OF
such corporations aud should be re-
pealed,
In addition to the recommendations
made by them already mentioned, they
recommend that state tax be assessed
upon the franchise and property of rail-
roads at rate to be ascertained by di-
viding the total amount of taxes levied
by the total appraised value of property
and polls entered in the grand lists.
The State Tax Commissioner to ascer-
tam the rate, and to appraise the rail
road property at its full and true value