The midland journal. (Rising Sun, Md.) 1885-1947, 1918-11-22
TIE STORY OF WILLIAMSBURG.
A Tale of Personal Property Taxes

A Tale of Personal Property Taxes
One hundred millionaires once
came together to establish an exclu-
sive, model and beautiful settlement
1t was the scheme of one of them, a
real estate man, who owned a most
desirable tract of land, suitable fol
just such purpose. On it he built
one hundred houses, occupying one
himself and renting the others to his
ninety-nine friends.
Now it happened that his building
venture stood him altogether a cool
million, counting fair price for the
land. The one hundred houses with
their sites averaged $4,000 each
and the average rent was $1,000, or
1919 gross return; which after de-
Quoting taxes and maintenance
charges yielded a net revenue OF
something like SO. His ninety
nine tenants all had their fortunes
invested in stocks and bonds, which
averaged them approximately the
same rate of income.
The model settlement was duly
incorporated as town with all
municipal services provided. But
one unique feature developed No
taxes were levied on personal prop
erty and all municipal expenses were
collected from one source alone, viz:
real estate. And as that was all
owned by one man, there was only
one name on the tax rolls!
The real estate owner. happy at
having all his houses occupied by
desirable tenants, was not disposed
to complain. He handed over the
taxes, and things went along swim
mingly for a few years; until one
day University Professor CHANGED
to visit the settlement.
When this. gentleman learned that
one man paid the towns entire tax
bill he protested most vehemently
against such a state of affairs. Ad-
dressing the town board he pointed
out how all residents enjoyed equal
protection in the community and
therefore all should contribute
equally to community support. That
because one man had invested his
money in land instead of in stocks
and bonds was no reason why all
taxes should be saddled on him and
everyone else be allowed to go scot
free. 1t was the essence of injustice
confiscation pure and simple, ETC..
Won over by his eloquence the
town council decided that every, man
should be required to pay taxes ac-
cording to his ability to pay. A new
levy was made upon personal prop
erty treating it exactly the same az
real estate.
Such system seemed to promise
an enormous yield of revenue. BY
the time it got fairly into operation
however, the security owners began
to talk among themselves. I'VE pay
our friend Brown a thousand dollars
a year rent" they said, (which is a
fair price for living in this beautiful
suburb. But now it seems we shall
have to pay couple of thousand
more in the way of taxes. This will
make williamsburg too expensive a
proposition for us, so we had better
seek other quarters" And they did.
And Brown, the real estate man.
soon found he was likely to be left
with ninety-nine vacant houses and
no income.
On his own motion therefore, the
personal property tax was abandon
ed, and the old state of affairs re-
sumed, with Brown apparently the
sole taxpayer. The protector of the
personal tax scheme was ordered to
leave the place with the solemn
warning never again to advocate
personal property taxes as relief
to real estate owners.
Query:
Who pays the taxes? The man
who owns the. house or the man who
occupies it?
Every landlord, in figuring his net
return, charges up the taxes to the
tenant. The occupier is the con-
sumer, and the consumer always
pays the taxes.
If personal property is taxed, real
estate will bring less rent. This ap-
plies to all forms of personally, in
GLIDING household goods and stocks
of merchandise.
Taxes on merchandise, besides
lowering rent, are shifted to the con-
sumner and INCREASE THE COST
OF LIVING.
Maryland Tax Reform Association.