Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-10-31
State Tax Board Urged.

commission, to have broad and positive
powers of supervision in levying assess
ments, promoting equalization of tax bur
dens. uniform methods through
out the State and enforcing collections, is
stated to be the fundamental reform needed
in the tax system of Maryland by the
commission appointed by Gov. Goldsbo-
rough to study the subject.
A 50-paee summary of the commissions
report was filed on Thursday of last week
with Secretary of State Graham. The de-
tailed studies which form the basis of the
report will be filed later. Some of these
studies have been printed and distributed
already, and the entire work will be avail
able at an early date.
The special commission making the re-
port, of which Henry F, Baker was chair
man and Allen C. Girdwood secretary, was
authorized by an act passed by the Legis-
lature of 1912. At the next session the
Governor will transmit the report to the
Legislature, with such recommendations
as he thinks proper, and an effort will be
made to reform the State tax laws in the
light of the investigations and recOmmen-
dations.
In digest of the recommendations given
out by the special commission it is stated
that the members consider 1.-The creation
of this permanent State tax commission
to be essential to any tax reform" and
recommend that such a commission be
composed of three members resident
taxpayers of the State and two be from
the counties and one from Baltimore city
and not more than two to be of the same
political affiliation-w shall serve for
terms of six years, provided that the first
commissions members shall have terms of
two, four and six years, that the men,
bership in the commission shall be con-
tinulng.
| In order to systematic the commissions
work and develop an effective organization
it is further recommended that the body
be authorized to appoint for each county
| local supervisor, who shall be selected
| from list of five resident taxpayers to be
nominated by the Commissioners of each
county.
As illustrating the need for the general
supervision of permanent State tax COM
mission the digest issued states:
Frederick county paid for the years be-
tween 1878 and 1911 on basis less than
in 1877. although its property increased
greatly in value.
The assessment of Talbot county was
less in 1911 than in 1888.
Some properties in different parts of the
State are assessed as low as 20 per cent.
of their true market value.
OF total assessment of $3l3,331 for
securities in Queen Annes county $751;
$40 is assessed against one woman.
Dorchester county alone assesses chick
ems throughout the county, the assessed
! valuation being so cents each.
| Automobiles are not assessed in st.
Mary's county.
In Washington county, which has an
area of 457 square miles, the Tax Collec-
| tor is the only person authorized to add
new improvements and discovered personal
property to the taxable basis.
Passing from the consideration of the
need of the permanent commission to va
rious phases of the tax question, the spe-
cal commission reported that, in its inves-
tigatiOn, it had much difficulty in ascer-
tanning the facts as to collections, because
there is no law providing for the audit of
the books of local collectors.
Upon the question of taxing corporations
an emphatic stand is taken. II is recon-
mended that the present taxing OF shares
of business corporations be discontinued
and it is suggested that the real and per-
sonal property of corporations be taxed.
with the levying of small franchise tax
based on the amount of capital.
AS to manufacturing corporations, there
| is recommendation for sweeping reforms
that will tighten the burdens of taxes upon
these enterprises.
The digest prepared by the commission
states
THE present corporation tax has fallen
with peculiar force upon the manufactur-
IND corporations and has resulted both in
keeping out the investment of foreign manu-
featuring capital and curtailing the inves-
ment of Maryland capital in manufactur-
ing corporations located within the State.
Maryland has maintained an uneviable
and short-sighted policy which has steadily
disregarded the fact that high tax rate
often yields small relative return. The
commission, therefore, urges that Maryland
manufacturing corporations be treated as
literally and equitably as are similar manu-
featuring corporations in competing States.
1t is of the opinion that the passage OF a
new law for business corporations will
place manufacturing corporations much
more nearly on basis of fair competition
with the manufacturing corporations OF
other States than is the condition at the
present time.
1t is recommended that the tax bonus Of
one eighth of per cent. be reduced so
that ii will more nearly be equal to that
of other States that the present gross re-
ceipts tax be thoroughly investigated and
that freight car companies which are not
now listed separately be taxed that steps
be taken to so amend the laws as to en-
courage Maryland people Incorporating in
this State, and that the present gross re-
ceipts tax on foreign fertilizer corporations
be abolished and that they be taxed as are
other foreign corporations.
The commission reports that the tax bur
dens upon the banking Of the State are
too heavy but no method OF relief is suR-
gested II is recommended that the Leg
islature investigate the matter. While dis
cussing the tax upon banking, the commits
sion states that only one-half the counties
return savings banks deposits to the State
Tax Commissioner.
As TO the operation Of the present tax
IND the stocks and bonds Of foreign cOrpor-
atoms, the commission says that premium
is placed upon dishonesty and penalty
on honesty. AS corrective, II is recon-
, mended that all persons who voluntarily
report their holdings be given a discount OF
so per cent, and that all persons who dc
: not, be penalzed at so per cent. In the
event that death reveals the holding OF
unassessed securities. ii is recommended
that they shall be taxed for period Of
five years. plus the so per cent. penalty
unless il can be proven clearly that sucf
, securities were not owned for that length
Of time.
Numerous other features of the tax sys
TEN are discussed, and the commission
illustrates the present lO0seness OF thu
levies for saving funds by pointing on
, that for the 1908 road loan, there already
has been collected $656,435.25 in excess
Of requirements.