Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-12-04
of the same, and national banks. that is


sued money and received money for bust
ness or check deposit without interest.
Later, state trust companies were or
the other banks, by borrowing money and
paying interest at about the same rate
as the savings banks. and by receiving
money for business or check deposit.
Later still, many of the national banks
opened what is called savings depart
ments, receiving or borrowing money and
paying interest. practically the same as
the savings banks and the savings de-
partments of the trust companies.
In all the New England states the saw
ings banks and trust companies pay
direct state tax upon the interest bearing
deposits at rate varying from \ OF 1Se
to u of 10, after making certain de-
auctions for real estate and tax exempt
securities held by the bank.
The following is a brief general state
ment of the laws of the different New
England states relative to the taxation
of deposits in savings banks and inter-
est bearing deposits in trust companies.
NEW HAMPSHIRE.
After making certain deductions as
above stated the banks pay 9. of 10
directly to the state, which amounts to
about 100000 per year Deposits in ma
tional banks not taxed to bank but sub
ject to general property tax to depositor
at local rates.
MASSACHUSETTS,
After deductions as above stated. which
amount to about one-half the deposits.
the banks pay of 10. Deposits in ma
tional banks not taxed to bank. but sub
feet to general property tax to depositor
at local rates.
RHODE ISLAND.
Savings banks and trust companies pay
2s of 10 upon interest bearing deposits
direct to state.
Deposits in national banks not taxed to
bank but subject to local taxation. to
the depositor, after deducting indebted
ness, at 3s of TO which is the general
rate of taxation for money on hand and
at interest.
CONNECTICUT.
After certain deductions as above stat
ed, the bank pays Il of 10 TO the state
Deposits in national banks not taxed to
cal rates or if he so elects he can re-
cord his deposits with state treasurer
and pay rs of 1So upon such deposits
which exempts him from local taxation
upon the same.
VERMONT.
After making the usual deductions for
tax exempt securities held by the bank.
Vermont taxes the interest bearing de-
posits in savings banks and trust COM
panies at TO of 1eo.
In 1906 Vermont passed law (Chap. 81
of Public Statutes) Sections so4 and sos
provide that every person having an in
terest bearing deposit in a national bank
shall report. at certain times, the name
of the person and the amount of such de-
post, to the state tax commissioner, and
to the local assessors.
Section 500 provides that every person
having an interest bearing deposit in
national bank shall pay to the state tax
OF ITO of 10 per annum.
Section 80 provides that no other tax
shall be assessed against the bank or the
depositor on account of such deposit.
Section S11 provides a penalty of 1870
per month for willfully delaying to make
such returns.
Section s13 provides that the state tax
commissioner or the court has power to
waive any part of the penalty
Sections S14 and SIS provide that ma
tional hank may elect to pay the tax of
ITO of 80 upon its interest bearing de-
posits deducting the same from the in
terest due to the depositor, which excuses
the depostor from making the foregoing
report and paying any other tax.
This law has been much under discus
sion by New England tax officials and
legislators since its passage.
The principal objections to the law by
national bank men and men who nat
urally oppose such a tax are:
FIRST, it is too indirect and remote a