Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-06-19
TAX LAW, GRAND LISTS AND TAX RATES

are known by their fruits. NermOntS new TAX leglSlaCOn,
which, like Topsy, Gust growed," has begun to bear fruit, and
a host Of people will watch carefully to see what the full har-
vest will be.
1t is well to note, by way of preface, that our States new
tax law is not precisely what anybody started out to secure.
Governor Fletcher asked the Legislature merely to relieve the
only class who were paying so-called double taxes by ex-
empting from taxation all money loaned on real estate at five
per cent, owners of personal property having the privilege of
offset. Some people wanted a small tax on intangible prop
erty, while others clamored for the abolishing Of offsets.
The process of legislative evolution produced a law ex-
empting from taxation all money loaned by individuals at
five per cent. whether on real estate or otherwise, and abol-
ishing all offsets, thus putting all property and loans to all
classes of people by individuals on an equal basis. Some
claim that if the five per cent. exemption had been extended
to bank loans, the law would be wel-nigh perfect.
The argument of those favoring the elimination of off
sets was that this step would result in so marked an increase
in the grand list as to pave the way for a material reduction
in the rate of taxation. AS soon as the returns have been re-
ceved from all the towns in the State it will be possible to note
precisely how far this argument has been indicated.
The work of the assessors has been completed in a suffi-
cient number of cities and towns to indicate in a general way
that one effect Of the new tax law has been to materially in
crease the grand list.
The variation in the extent of this increase in different
cities and towns is so marked that it manifestly will require a
cest of more than a single year to say just how completely
personal property will be forced into the grand list by our
present tax legislation.
Burlingtonis offsets in 1912 aggregated the enormous sum
of $%3,736,973. Since the personal property in this city's
grand list jumped this year from So, 1893, the total in 1912,
to S5,69O,667, or an increase of $~2,030,620, it is fair to as
sumo that over fifty per cent. of the personal property that
escaped taxation under the previous law is now paying a tax.
In Rutland and Brattleboro the increase in taxable prop
erty, due to the abolition of offsets, is over 81 900, 900. Barre
shows an increase of about 100000. Colchester has a gain
of $255,635 in personal property. In Montpelier, on the other
hand, the increase in income is only about 100000.
This marked variation in the increase in grand lists
through the abolition of offsets shows that assessors differ
widely in their treatment of personal property as well as in
their exemptions under the interest limit fixed by the new
law, while we are not ready for a State board of equalization
of taxation, throughout the commonwealth we plainly need
greater uniformity of methods of aTpraiCo1 and iuoroaca6
equity as to the burden of taxation as between different towns.
In some towns stocks of goods in stores of various kinds
have been put in the list at a high valuation, while in other
instances merchandise has been appraised at only half Of it's
inventory value. In a host of cases, of course, merchants
have not bought as large stocks as formerly, SO that part of
the personal property h>ving an offset last year that has not
appeared in this years grand list is thus accounted for.
One effect of the large increase in the grand list of the
State, as a whole, ought to be a material reduction in the av-
erage rate of taxation. The temptation will be strong to
spend the increased revenue in some way, maintaining the
rate of taxation as at present, but the general adoption of this
course would be unfortunate in the extreme, putting q prem
ium especially on increased extravaganza.
Let us use our own city by way of illustration as to the
possible decrease of rate of taxation growing out of an in
creased grand list.
In 1912 Burlingtons taxation bases aggregated S16,-
758,838. This year the total is S18, 789,358. To put it in
another way our grand list is $187, 893.58.
In 1912 Burlington's rate of taxation was S1.75
and this rate should have produced a revenue of 1928, 27936.
With $~18,7S9,358 as a basis of taxation in 1913 a rate of $1.6O
would produce a revenue of $500, 629.7 2, or 81: 1872 SO more
than was raised last year.
The tendency throughout the State is to decrease the tax
rate the present year, various considerations contributing
thereto. In the first place it is a practical certainty that
grand lists in cities and larger towns will not be as large next
year as this year, because merchants will not have as large
stocks on hand next April. In the second place no one is able
to predict what The result of an extra session will be as re-
CARDS taxation.
When expenditures by a community are increased, it is
next to an impossibility to reduce them, and people in gen
eral feel that it would be unfortunate in the extreme to gauge
city and town expenditures on the present temporary swollen
grand lists throughout the State.
Extravagant expenditures are one Of the crying evils
- the present age, and communities naturally reflect the
aggregate Of individual tendencies. Public sentiment must
exert q tremendous pressure, if Vermont is to be prevented
from entering upon an era of increased expenditure it will be
unable to meet in the coming few years without greatly in
creased tax rates throughout the State.