Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-13

GEORGE w. LEADBETTER
Messenger 10 Governors Council,
Who Addressed Assessors
amount of intangible property In
New hampshire is about equal To
the tangible property. Yet in years
past about 9S percent of the proper
tN burden of that state has been
borne by the tangible property. ON
the New Hampshire assessors books
only about S20.000.000 worth of in
tanSihles were recorded. whereas, the
amount in the state was between
$500, 100000 and $500. 900. 900 The
amount recorded declined from $50.
100000 TO about $500. 900.
Two Years ago the New Hampshire
Tax Commission asked its supreme
court for an opinion ON the question
whether it would he legal to tax in
tangible property on the basis of the
amount of income received at the
property rate Of taxation. ON the
general proposition, the court held
that it would he legal although 1t
could not bo done as an income tax
Tor there was no provision in the
constitution for an income tax. So a
law was drawn to that effect and has
low been i'll effect about two thirds
of year Exempt from the provis-
ions of this law are United States
Government hords. also state. roun-
" and town bonds issued before the
passage of the act.
MIR. Hale declared that this was the
FIRST positive stAe toward the aboli-
tion of tax exempt securities and
that it even went so far as to tax the
interest on bonds of their own state.
"a TO-.
Nious 10 the passage of the act.
The law provides for the taxation
of dividends received from bonds and
from corporation stocks except in
cases where the dividends arc issued
IN the form of new stock. an blanks
which must he returned to the tax
commission before March II each
wear. each taxpayer in that state
must under oath tell the amount of
income and dividends he has received
during the previous year. Each tax
payer is allowed an exemption to the
amount OF $500. The rate of taxation
is the average rate in that state.
which this year figures S249 on cVer>,
500 of income. 1t was Mr.. Hale's
opinion that this rate is too low and
that it should be about four percent.
Whereas the amount Of principal
tfiNc' LUZ NfEl l1tltit INC EtW went
into effect WAS $500. 900. during the
FIRST half Of the year the new law has
been in effect the returns showed
over 100000 900 of income which
could be taxed, and there is every.
indication that the state will have a
great deal more income 10 tax than
there was principal under the old
system. The money collected goes
back to the towns from which it
came.
There has been very little protest
against the law, Mr.. Hale asserted.
He stated. however. that 1t is eX-
pected that the constitntionalitv Of
the law may lie tested by the court
IN the near future as one protest has
been filed against the law
The cost of administering the Fed
eral government income tax law has
been about three per cent, but the
cost of carrying out the provisions
Of the New Hampshire system of
taxing intangibles will amount to
less than two per cent The law
gives the tax commission power to
investigate TO ascertain If tax PAYERS
are making fair returns.
Mr.. Hale said that Maine has n
constitution much similar to that of
New Hampshire and he believed If
such n law could he passed in Maine
and be sustained. that the State
would profit by it.
Referring to the question Of taxa
ton of stock in trade in stores. Mr..
Hale said that. the average amount
of stock carried during the year is
the only equitable basis for LAYING
the tax. IL" believed that stock in
IL