Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-03-06

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The period from IT'S to the Civil War,
while interesting MS showing the founda.
ton of some present day financial his
tory, is not closely connected with the
later day finances Of the state
In 1881 provision was made for the CASH |
Ter of banks to transmit annually to town |
clerks information regarding the hold' |
ing of bank stock. In lSil provision was
made that property should be assessed at /!
its true value and that one per cent OF
that valuation should be set in the grand
list and taxed. This provision continues to
the present time. Taxes on incomes of at
torncys tradcsmcn, physicians and others |
which were inaugurated In ms, continued
to 1850 when IT was abandoned.
Corporation taxes date from 1878 when
the Bank of burlington was chartered
with the tax fxel at six per cent. of the
profits I'm the carly sos heavy cXpendi- .
turos were due to the War Of ISL, the
payments made New York and the build
ing of the state prison and the capitol.
For the latter, in 1894, sll7,0772S was raised
and after the building was burned in 1874,
stlA. $3.50 was raised, Of which the citi-
IONS of Montpclicr subscribed 81, 53072.
Al the opening of the civil War the
debt was $4,000. ard at the close it was
ST. 1850. This was paid by 1875. During the
war there was paid from the state treas
uI'v for purely war purposes and the sup
mort of soldiers dependents the sum Of
$i.7aG.719.71 During the war the towns paid
out for war purposes enough to make the
total payments by the civil divisions OF
the state of Vermont 9,9f522.51.
Much of what is said under the chapter
recent legislation and tendencies, has been
discounted by tn" tax legislation of the
last session. abolishing offsets and MAX
ing other changes.
from lN,s to tn" present time, tho de-
vclopmont of corporation taxation has
been r.Nn4 and these now supply a
lare, part tho "ommonwealth's revenue.
Until 1873 there were no taxes on savings
banks or bank deposits. In 1872 the saw
ings banks and trust company taxes
amounted to S527.91e.i5. an important ele-
ment of the corporation tax.
Taxation of insurance companies was
begun by the law of lSSS. The National
| Life Insurance company was taxed one
per cent. on it's surplus over four per
cent on existing policies. There is now
| Il tax on premiums and assessments.
Railroad taxation began in 1sS2. when
the grand list assessment was given up.
/ Numerous special and general laws have
! been passed on this subject, the general
criticism being that railroads were insult
3 ncientIy taxed other corporation taxes
have been tho subject Of various laws and
amendments covering the special classes.
Charter and business license fees form
a substantial part Of the revenue of the
state.
/ \ collateral inheritance tax was pro-
vidc1 in 1890 This was revised i'm 1904
So that five per cent. is levied on all
lcsacios and distributivc shares passing
to collateral heirs and non-rolatives, re-
gardloss Of thu size Of the estate. 1t was
further amended in 1905 and 1900 to apply
to all heirs
TIN, general property tax and the poll
tax have undergone little change in tho
period since the Civil War. so far the
Drinciplc is concerned though Administered
tive and other minor changes have been
made
The monograph gives considerable
space to the consideration of offsets and
exemptions under thc tax laws and eX-
presses the opinion that something may
be accomplished in the near future in
carrying out the demand for abolition OF
offsets and a small tax on intangibles
predictions which have been carried out,
in part at least, by the General Assembly
of 1912.
Among the concluding paragraphs are
funds, highway finances, revenue and eX-
penditurc, budget making, compensation
Of officials and local finances.
The net cost t. the state of the Spanish
War is set up at $5l,5oS.94. The total OK
lpcndlture in 1910 was t1,S27,GGl77, an in
crease from siF,95i35 in 1>N0.
The following taken from the chapter
headed, conclusions is Of interest. view,
ID in the light of the tax legislation o
1al2.l3
Yet it is possible that the taxation prob
lena in Vermont is working itself ou
more rapidly than would appear Certain
it is that the General Assembly of 1871
gave evidence of q changing attitude OF
the taxation Of mortgages on real estate
Certain it is, moreover, that already ;
very considerable portion of the intangi
ole personal property has been taken from
the Grand list and is now taxed dircctl!
of scvcn-tenths of one per cent.
This is the case with nearly all deposits
in savings banks and trust companies an,
with Understanding deposits in nationa
banks.
This means that property to the amour
of approximately sslWn,Oo0 is so taxed
=. while the personal property of all kind
taxed through the grand list of 191
amounts to but si5,c",0O.
| The s>iHlH.r0 Of deposits now take,
at the rate % sevcn-tcnths of one pc
. cent is about the total of personal prop
crty of all kinds found by the listers:
L. about double the total of all kind
of intangible personal property found. /
. is evident that already the in.anCihl
| Part of personal property in Vernon
is to a great extent taxed in manner an
+ gihle personally.
Further extension OF the scope of thi
! special form of taxation. to mortgag
= debts held by individuals and to other in
tanSibles now supposed to be a part o
the grand list, would complete a radca
, yet rational reform In taxation. There
f no constitutional difficulty, IT would seen
to progress along this line.
I This policy would meet the demand tina
= intangibles be taxed; it would provid
! q tax on all mortgage debts that woul
add very little, if any thing, to the lntores
, charge of borrowers; it probably wouI
= be more productive than the present ta
+ on intangihlcs.