Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-08

L ~ ASAOs
particularly Of widows and orphans who
perhaps have been taxed full Vaiue.
whereas many much larger estates nave
been able to go free through the astute-
ness OF more experienced administrators
or trustees.
Also. to illustrate, many widows de-
clare their intangible property, II 1t De
such, to the local assessors, in thelr<in-
nocence of the unwritten law OF taA
lodging and their honesty Of purpose in
paying what they believe to be their
just and proportionate tax. Should the
local assessors be severe by reason OF
political exigency, sometimes termed
financial, to raise revenue by increased
valuation at the expense OF JustlhaDle
tax rate. the widow may be Obliged to
pay what would appear to be at least
disproportionate tax, II not an UNJUST
one.
Many specific cases could be cited to
illustrate this more fully, but to gen
eralize, a widow might receive $4,000 in
bonds by bequest; say this comprised her
whole property; by her honesty, or
the fact may become known to the as
SCISSORS: they may be four per cent.
bonds, which is often the case, rather
than five per cent. or six per cent, for
on the bonds would be $1,000, and, if the
tax rate Of the city or town was $25. she
would be obliged to pay $3.50 tax on these
bonds, which would leave her but $40
with which, to live; whereas under the
new law. if the rate was made, say, at
five mills, she would pay only $3.50, and
have N,75O left.
There are cases where tax rates are as
high as $40. In such cases it would con-
sumo the entire income, If they paid,
and If the tax was above $40 the more
bonds they had. the poorer they would
be.
conf1agration or other cause (and such a
contingency might arise in this State in
some locality many unprotected persons
might suffer, whereas many others more
able to pay might be taxed nothing. :,
This briefly illustrates the scope and
probable intention 81 the amendment
Experience has shown that such prop
erty cannot be found under old condi-
tons. except in few cases where the
hardship is imposed. and the great bulk
of it is paying no tax.
The revenue which would be derived
from this proposition has no direct re-
lation to any increased expenditures OF
the State by necessity, other than the or
binary cost of administration, as it does
not necessarily mean an increased reve-
nue., but an equalization of taxation
and an increase on this portion of prop
erty should diminish, to a certain extent,
taxation on other property.
Unfortunately it is noticed that in some
states the increased revenue has not les
soned other taxation, but has increased
expenditures to fit the increased revenue.
which will appear unless the rate Is
made equitable and just SO that. to
speak plainly, people will be more hon
est in paying taxes, II 1t does not cost
too much, or more than his neighbor Is
paying.
1t is doubtless expected that tax Of.
say from three to five mills on a thou
sand will bring to light large valua-
| of fS l11A1 i,,tn ,uih Il
property on which the holders will be
willing to pay their tax; whereas, now,
many will not while others are not able
to pay the currenternt local taxation of
a city or town.
Another view might be on percentage
I Of income. as paper securities are par
ticularly susceptible to changes and
| fiuctuation in value.
Also, the temperament Of some peap1e
may be to invest in low rate bonds In
preference to higher rate for the pur-
pose of security. whereas others may
take chance on higher rate securities
with the hope of larger income in the
principal is eventually paid.
This is matter to be threshed out
and these remarks are but suggestions
which may be considered in arriving at
d safe and sane conclusion
Having referred to the application of
the valuation, it seems necessary to con-
tnue.
What will You do with it? Shall it be
considered in the regular valuation the
same as heretofore. or will you deem it
more wise and equitable to keep it sep
arate and distinct from the real and
! tangible personal? And can you do this,
| if You SO desire?
You will. without doubt. recall that
the debt limit of towns and cities under
1000 inhabitants is five per cent on its
valuation of intangible personal prop
erty should double the present valuation
the borrowing capacity would also
double
This property, being of f1uctuating
volume, would initiate against a steady
tax rate by reason of changing valua-
ton, which might cause more or less
| confusion as a fiuctuatng tax rate is
an element of danger unless wide pub
licity is given to the reason for the
change.
How will it affect the situation regard
ing fixed and specific tax assessments for
special purposes? Possibly you have al
ready decided in your own minds that
the only safe way is to assess direct
tax on such property on distinct val
Cat!on for state revenue only.
This is what is referred to in investi-
eating the general laws of our state to
ascertain whether this law will operate
with the same results here as in other
states.
Should the Legislature decide to allow
the valuation to be added to the present
will 1t not be difficult to convince the
erty, and, also. is it not doubtful if the
valuation is really there?
| If 100000 is invested in a piece of
real estate, and s100,o00.00 in bonds are
issued against it, should it be considered
as 100000 in valuation for other taxa
ton purposes?
This naturally brings up the question
of exemptions. In some states. at lea st,
the paper evidence of real or personal
! property is exempt when the actual prop
erty is in the state and is paying its
property tax.
| All exemptions will probably be listed
| No doubt you will consider the exemp-
ton of corporations which pay their
taxes in other ways, such as those, for
instances, which pay on gross earnings
and similar cases.
Many other possible exemptions wilk of
course. be given attention, such as ma
tional state and municipal property, Sc
curities exempt from taxation by the
United States. religious organizations, ed
| ucational institutions, and many others
of peculiar character.
The question of penalty on assessors to
maintain secrecy, and also the penalty of
failure to disclose, will undoubtedly at
tract your attention.
The ways and means OF collecting the
revenue will, of course. receive serious
thought, as also the expense of it.
The element of protection will call for
some notice. If a low rate is named, can
assurance be given that it will remain
low? What is a wise and equitable rate
Before the amendment was passed, the
law seemed to say that the local rates,
| he %n1.n thnx-