Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-12-05

During the campaign the paramount issue relating to
Vermont easily the question of taxation the problem en-
bracng the of taxation inequalities the putting OF the
individual leader the basis the bank regards taxa
ton, and a uniform low rate of taxation on money
asmuch all parties called for remedial legislation along
these lines it is people expect The repre-
snaves of all parties in the Legislature to cooperate for the
the legislation that will promote the conservation Of the State
natural resources
The two proposed carry out these policies are
First the taxation of intangible property at uniform rate of
of per cent and second the exemption
taxation all money loaned the State
a note secured by mortgage on such realty
In view of the widespread interest in this subject the editor
of the FREE PRESS communicated with Hon. W. B. Fellows
secretary of the New Hampshire State tax commission to
tain whether the Newampsre law exemptng money loaned
real estate at five cent less working in sasac
tory manner.
Secretary Fellows replied The law results in the Dor
paying less interest and docs not harm the savings
banks as they feared
reply to the question the New Hampshire measure
should be supplemented, at ALL Secretary Fellows said
credits in the personal opinion of the writer
the New Hampshire law be adapted the
ton in Vermont evident that proposition embodied in
the Tabbitt BILL pending legislature step
in the right direction. That measure reads as follows:
''Money loaned rate of interest not exceeding five per
per evidenced by the payment of which is
by mortgage real estate situated within this State
shall be exempt from taxation
The New Hampshire tax law in cnumerating personal
tate subject to taxation includes:
Money hand at interest than the owner pays
interest for including deposited in bank other than
savings bank within the State loaned any
pledge Obligation other security whether interest
rate Of interest not exceeding five cent secured
by and mortgage real estate situate in this State
Will be seem therefore, that the provisions IN the two
States for the exemption of loans at five cent rea estate
practically Identical and therefore reproduce what the
annual report of the commission has with reference
to this particular provision as follows
The Legislature of 1911 took very long step in adj
when it provided for the exemption Of notes secured
by mortgages New Hampshire real estate at five per cent
interest or less.
'That action right in principle and sound
business proposition 1t enables to borrow money
O ncghbOrS OF
banks and is doubtful if it will result in injury to banks
.lt may be said with truth that an argument against
double taxation is applicable to the taxation of savings
bank deposits and national bank stock the taxation of
notes and bonds in the hands of individuals.
TaXaton of banks is in effect double taxation AMI can
be defended only as business or license tax
1.-The savings bank tax is by act of 1911 (Chapter
1914 expressly declared to be AN excise tax for the prv
ege of conducting business thus distinguishing between
property and privilege tax
TO the argument that Vermont law exempting taxa
ton loaned real estate five per less should
be made applicable all loans that the answer that
personal property in Vermont already enjoys concession in the
way of the allowance of offset for debts owing which is
ter1y denied to real estate.
If exemption for five per loans were to be made anp
cable to loans to merchant and manufacturer well as
to real estate then manifesy the offset enjoyed by former
should be abolished.
SO long as Vermont exempts money loaned estate
at five cent or less and permits borrower forms
OF security an offset for debts owing there abolish
ment of double taxation can be easily Afforded
In all human probability the rate named in this
will be four and onehalf per in the future.
but it is not well to make radical a change once and five
per cent affords an easy change with which to begin
AS matter of fact there why the Legislature
should not enact this law for exemption five per
for the Of the development Vermont natural
make whatever provision il sees fl regard
ing the taxation of nangibe and other property outside
real estate interests
Real always been treated in class bv itself
without the privilege of the offset already Indicate
and the people of New Hampshire have apparently solved the
problem how to treat under the law without clu l.
ing kinds of banking institutions which are expressly
treated separately as subject to taxation.
We believe bel the New Hampshire law well suited Yer
mont so Tar as applies to conditions
to be hoped that the Legislature will make of certain
degree Of progress by first passing this measure limited as n
Gated and then II ii lit consider the other
OF personal estate by themselves they now treated be
themselves as distinguished from real estate