Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-11-10
To Inquire Into Methods Of
y. Taxation Of Railroads.
Plans Accepted for New Normal
- School at Machias.
STATE HOUSE CALENDAR,
Next Meeting of Governor and Council
Thursday, Nov. 10, at 10 A. M.

lature is that of deciding upon a basis
for the assessment of taxes on the rail-
roads CT the State and those of other
states which do business in Maine.
Under the present system the rail-
roads are taxed on the basis of trans
pOrtation bat it is understood that
there is quite an amount Of sentiment
In favor of taxing them according to
their valuation, and it is this question:
whether the present system Of taxa
ton shall be retained or whether the
railroads shall be taxed on the basis
of valuation, that will come up for
discussion
But the change in the system. if
there is any, will not be made without
a thorough investigation. 1t will be
remembered that among the orders
passed by the last Legislature was one
by which the Board of State Asses
sors was instructed to ascertain the
actual value of all the railroad prop
erty in the state of Maine of all kinds
including franchises, real estate, bonds
and stocks, and report to the next
Legislature, for the purposes of taxa
ton. No appropriation was made for
the purpose of carrying out the work
but arrangements have been made
whereby Hon. George Pottlc of Lewis
ton, chairman of the Board of state
AsSessofs, IS now on trip to Michi-
gam Whefe work upon the problem OF
railroad taxation has been in progress
Tor tfe past two years. Mr.. Pottle
VIII make thorough investigation of
the same and will at the proper time
Submit a report thereon.
The law under which railroads are
taxed at present is Chapter of the
Revised Statues of 1908 as amended
TO July ], 1909, and reads in part as
follows:
Section 2$, Every railroad cons
pany Incorporated under the laws of
the State, or doing business therein.
snail annually. between the first and
1ltcenth days Of April, return to the
secretary Of state under oath of it's
treasurer, the amount of the capital
STOCK OF the corporation, the number
ana par value of the snarcs, and a
complete list Of its shareholders. with
their places of residence and the num-
Der OF shares belonging to each on
sad first day of April The returns
shal' also contain q statement of the
whole length Of its line. the length oe
us HE within the state and the as
sessed value in each town of its sta
ions and other property taxed by
sSection "a Every corporation. per
A. Pm or association, operating any rail
MO in the state under lease or OF her
use, shall pay to the treasurer of
dte, for the use of the State, an an
1nal, excise tax, for the Drivileg" of OK
EXERCISING its franchises and the fran.
y ccises of its leased roads in the state
Whicn. with the tax provided for in
section four of chapter nine. is in
place of 2ll taxes upon such railroad.
It's property and stock. There shall be.
apportioned and paid by the State
from the taxes received un1rr this and
the five following sections and under
section thirty-onc. to the several cities
ana towns in which, Oh the first dav of
Apr! i'm each year, is held railroad
stock of either such operating or opcr-
ated roads exempted from other taNu-
tlon. an amount equal to one per cent.
on the value Of such stock on that day.
as determined by the board of Statc
assessors; provided. however, that
the total amount thus apportioncd on
account of any railroad, shall not en-
coed the sum received by the State as
TAX on account of such railroad; and
provided, further, that there shall not
pe aprprtloncd on account of any rail-
road and lis several parts, if any
operated ly lease or otherwise, a
greater part of the whole tax received
from such railroad and it's several
parts, tnan the proportion which the
amount OF capital stock of such rail-
ROAD and its several parts owned in
thiS Sttae. bears to the whole amount
Oh me CAPITAL stock of said railroad
and its several parts
Section 25 AS amended by 1907, c.
l6S; 1909 c. 81. The amount of such
annual excise tax shall be aScerta:ned
as tolloWS. The amount of the gross
transportation rcceiptS as returned to
the railroad commissioners for the wear
enClhS or til" thlrteth day of June
preceding the levying of such tax, shall
be divided by the number of miles of
railroad operated. to ascertain tho
average gross receipts per mile: when
Such average receipts per mile do not
exceed fifteen hundred dollars, the tax
snail be equal to one-half of one per
cent OF the gross TRANSPORTATION re-
ceipts: when the average reccipts ncr
mile exceed iifttrn hundred dollars and
1 90 not exceed nineteen hundred dol
lars. the tax shall he equal to three
quarters OF on2 per cent OF the gross
receipts; and SO on increasing the rate
OF TAX on"-quartrr of one per cent. for
each additional four hundred dollars of
average gross receipts per mile or frac-
tlonal part thereof. provided. that the
rate in 70 event exceed five per cent.
and in case of railroads operated ex-
ciuslVely for the transportation of
freight. said rate shall in no event eN-
ceed three per cent. When a railroad
lies partly within and partly without
the state. OF is operated as a part of a
line or system extending beyond the
state. the tax shall be equal to the
same proportion of the gross receipts
IN the state. as herein provided and it's
amount shall be determined as fol-
lows: The gross transportation re-
ceipts of such railroad line or system,
as the case may be, over its whole eX-