Evening star., 1917-01-15
The Evening Star Newspaper Company
llth st. and Pennsylvania Avenue
Maryland's Taxation Hints.

The new intangibles tax takes the
District from the class of states like
Delaware, Idaho and Washington which
do not tax credits at all and places it
Pennsylvania and Minnesota which i'm
pose a low rate tax ON certain intangi-
bles.
The District feels that in its new
classification it is entitled to all the
equities in exemptions, in moderate
rates and in uniform leniepcies of en-
to he wise in one or more of the other
states in the same classification. No
state, for instance. taxes all intangibles.
The District should not be taxed on all
intangibles. The surrounding condi-
tions are such that instead of being
taxed the most heavily of the states in
taxed the most lightly. In any event it
should not be subjected to more dras-
tic cxaction than any other state in this
class through the taxation of more in
tangibles at the highest rate.
What hints does Maryland give to our
legislators now engaged in putting into
shape to meet the requirements of equity
the Districts tax system, including the
recently and hastily enacted intangibles
tax!
Elsewhere in The Star today is printed
an interesting discussion of Maryland's
tax on intangibles. The New York state
legislative committee on taxation, re-
porting in 1916, furnishes an up-to- date
summary and analysis of the Maryland
law. Judge Oscar Lesser of the Mary
land tax commission, to whose capable
administration much of the success of the
intangibles tax in Baltimore is credited,
is quoted to explain the scope of Mary
land exemptions. Allan c. Girdwood,
secretary of the Maryland tax commits
sion, through his pamphlet on Taxation
of Intangible Personal Property in
Maryland contributes Interestingly and
usefully to the discussion.
Maryland taxes % all bonds and eer-
tifcates of Indebtedness issued by cor
porations Except state, county and mu-
nicipal bonds). and (2) stock of foreign
corporations only on the condition that
interest is paid during the year
Maryland does not tax (D shares of
Maryland corporations; (2) ordinary
mortgages; 90 book accounts of mer-
chants; (4) holdings of savings banks;
(5) deposits in banks; (6) state, county
and municipal bonds; CD holdings of
domestic corporations under certain
conditions; (s) holders of non -produc-
tive bonds and foreign stock.
Secretary Girdwood says concerning
these exemptions or exceptions: II make
these explanations in order that you
may understand how limited in scope is
the application of the rate, and yet 1
believe each of the limitations is sound
and reasonable"
Most of these sound and reasonable
exemptions are made in order to avoid
or TO minimize double taxation of the
same property, and to distribute more
equitably the total tax burden.
Why should not the Districts taxable
intangibles be limited to the specified
bonds and stocks taxed in neighboring
Marylandf Why shall we not wisely,
profting by Maryland's experience,
make the same exemptions that in Mary
Send are pronounced sound and reason
ablef
Will not the Senate appropriations and
District committees analyze thoroughly
every one of Maryland's exemptions, and
compare carefully tax conditions in
Maryland and the District before decid-
ing that any intangible shall be taxed in
the District which in the light of Mary
lands experience has been wisely ex-
empted in that statei