The Waterbury Democrat., 1933-12-27

by real estate" at a time when state and municipal governments are confronted with perplexing ques- tions of management and policy and when revenue deficits are the rule rather than the exception.
 In the agenda prepared as a ba- sis of study by the commission, care has been taken to exclude an angle of the Connecticut tax pic- ture which might, upon examina- tion, help to indicate upon which tax-paying group the present tax budren dests most heavily. Atten- ti0n is being devoted to possible effects of alteration of some of the present statutes, and what merits and defects, if any, are to be noted in the existing routine.
 While tho revenue-raising ma chinery now in effect for state purposes occupies a large place in the deliberations of the commis- sion, much of the study will de- velop around local procedure in the more than 800 taxing districts into which Connecticut is divided. Along this line,: the possible pro- cedure fo rreducing property taxes includes such questions as:
 Statutory limitations on tax rates. tax levies and debt; local
 budgeting and accounting; possi- bility of state supervision of local finance; uniformity of municipal
 fiscal years, effective financial re-
 porting governmental reorganiza- tiOn, reallocation of governmental functions. and other related topics.
 This discussion also brings the commission into a study of the needs for the enactment of new
 laws and possible distribution of revenues among local Jurisdictions as an aid to reduction of property taxes, and whether certain func- tions now carried on by the towns
 might, with advantage, be transfer red to the state, either in whole or in part, or to be financed by some method of epalization funds. Concerning the administrative problems connected with the prop erty tax, exemptions of certain real estate and personal property are being studied by a subcommittee. This is a broad phase of the tax picture and involves questions of policy with respect to the uses of exempt property, and its relation to the tax base.
 With respect to intangibles, the case for and against taxation of this type of property has brought forth suggestions for possible ad- ministartive devices to discover this property which is not, by its na- ture. within easy review of tax officials. These administrative de- vices may be said to include ex- perience of other states with low rates on intangibles; taxation of the income, such as interest and dividends, from intangibles; substi- tuition of the general personal in- cobe tax in lieu of tax on in- tangibles; combination of 8 general personal income tax on the income form intangibles, and other related angles including the controversial question of the 'situs" of this type of property.
 The special difficulties experi- enced by local assessors in attempt ing to value automobiles, manufac- turing machinery and equipment, manufacturers raw materials, goods in process and finished pro- ducts of both merchants and man ufacturers, as well as other types of tangible personal property are also receiving consideration from sob-committees.
 Financial administration in mu- nicipaIities, the matter of limita- tion upon local bonded indebted ness, the prevalent municipal cus- tom of borrowing large sums an- nually in anticipation of taxes and powers of local boards of finance are other matters upon which the commission is devoting attention.
 The commission has found that many questions are involved in tho administration by the state of the tax laws governing savings banks, trust companies, insurance compa- nies, other corporations, unincor- porated business, estates and the penalty tax on estates of deceased persons.
 Out of it's deliberations covering these numerous somplex angles of the Connecticut tax situation, the commission will prepare it's pro- gram and recommend legislation for consideration by the next ses- sion of the general assembly.