The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1910-05-27
A TAXATION QUESTION
What Is the Value of a Farm and
How Determined

How Determined
In making up the grand list the law
provides that real property shall be
listed at it's true money value. There
are several methods of ascertaining
the value of real estate but il is safe
to assert that no one system of arriv-
ing at valuations is in vogue in all
sections of Vermont That taxation
may be just and equitable the proper
ty should be assessed at its true mon
ey value. To be fair to the farmer
and to the state is a serious problem
and one that should have the earnest
consideration of the tax commission
ers. The present way of assessing
farms is impracticable unsatisfactory
unfair and hardship upon the hard
working farmers. This statement can
be sustained by a careful investiga-
ton of most any farm in the state.
The same common sense should be
used in arriving at the valuation of
farm as one would exhibit in get
ting at the value of any other invest
ment. There can be no dispute that
any property is reasonably worth in
proportion to what it will return to
the owner after deducting all neces-
sary expenses and outgoes. In other
words, the net income of a property
determines its true money value. The
real value of farm should be figured
on the same basis, that is, what is
the net rate therefrom. For illustra-
ton take farm that will keep 20
cows. Such farm on the average
would cost $4,000 and in order to be
a good investment and be assessed
at such a figure It should give the
owner a net "eturn above all expen-
ses of $500 each year. This Is . per
cent upon the investment.
fair and just method of ascertain.
ing the true money value would be
deduct from the gross income the ex-
penses necessary in keeping the
buildings, tools, etc. in repair, main
tanning the standard of dairy and
horses, paying for necessary help etc.
This net income should be figured as
interest value on a certain principal
and that principal would be the true
money value of the farm and should
he placed in the grand list according
iy
Take an average 20 COW farm for
one year. The expense of maintain
ing such a farm can be figured about
as follows:
man and board for year 5000
man and board s months, 400
Maintaining standard Of dairy 200
Maintaining standard of horses 200
Keeping buildings and tools in
repair 300
Insurance 30
Taxes 60
Interest on money invested in
tools and stock, 100
1 girl and board for 80 weeks, 3S4
1924
The gross income on the average of
such farm can be figured as follows
5000 pounds of milk for each COW or
1000 900 lbs The average price In Yer
mont for milk for the year 1909 was
$l75 per hundred so that the income
from the milk would amount to $3.50
This would indicate a loss OF 1914
each year II the owner of the farm
and his wife were paid for their lab
or and all of the actual expenses
were included.
On the other hand II the farmer
would place his investment Of $4,000
for the farm, $4,000 for his cattle and
: horses and tools out at interest at
> per cent he would have net return
of $500 from which should be deduct
ed his taxes of $40, He would ther
have the labor of himself and wifi,
for hire which should return him al
! least $500 above their board so tina
: he would have net income from hi
/, money and labor Of about $500 eacl
, year. For some unaccountable rea
son the farmers are the only class o
workmen that do not place any valu,
upon their services. At least in flgur
ing their profits and loss very few o
them make any allowance for the Ia
> Dor they perform. There is no rea
q son why the business of farme
n should not be considered on the sam
: basis as the management OF any othe
industry and II this were done Their
G can be no doubt but what most of III
/, farmers would be greatly surprised a
i the result. From the above figure.
4 which cannot be considered othe
than conservative, II will be seen tina
farm that will keep 20 COWS will nc
pay any return on the investment
the business is figured on the basI
as any merchant or corporation n,
ures.
II a farm such as illustrated or an
: other farm were owned by n corpori
ton and the stock placed upon IN
market, the first question that the II
vestor would ask would be: VIII,
dividend does the stock pavq IN
farmer might answer that he had \
ways made a living and put somethin
IN the bank each year but the shrew
investor would have to be shown an
then the figures could not be far fro
those given above Such stock won
nave no value upon the market Tn
may sound harsh and II may hurt n,
you can't get away from II.
II is but natural for the reader
inquire why then do people nav
much for farm and the only dire
answer Is that We want homo n,
oreo and reared on farm and wi
mas always exercised his Independent
oeen his own boss and run his oy
business rebels against the ideo
confinement within factory wills w
lection ia tho ,f.t.t-. ''f'f "N