UC-NRLF M7 lib LIBRARY OF THE UNIVERSITY OF CALIFORNIA. QIF~r OF Received Accession No. 70 1^ - Class No. DOCUMENTS DEFT. ^ ^3 u I REPORT OF THE Special Tax Commission of Maine, APPOINTED UNDER RESOLVE OF THE LEGISLATURE, Approved March 8th, i8g. AUGUSTA : BUKLEIGH & FLYNT, PRINTERS TO THE STATE. 1890. RESOLVE. 70 1^07 To provide a Commission to inquire into the system of taxation of other states and this state and report to the Governor and Council. Resolved, That the governor be and hereby is, by and with the consent of the council authorized and empowered to appoint a commission consisting of three persons whose duty it shall be to inquire into the system adopted by other states to raise revenue for state, county and municipal expenses, and to provide for a more equal, just and equitable system of taxation, of all kinds of property in this state, for the pur- poses of said state, county and municipal expenses, that shall be better adapted to the wants of this state and reduce the rate of taxation of the people ; and to provide for a better, and more effectual system of assessment and collection of taxes, in this state ; said commissioners to be paid from any money in the state treasury not otherwise appropriated, such a sum for their services as shall be allowed by the governor and council and for necessary clerk hire and incidental ex- penses and to report to the governor and council on or before the first day of October in the year of our Lord eighteen hundred and ninety ; and that the governor shall cause their report to be printed and distributed at the state's expense, three copies of which shall be sent by mail or otherwise to each member of the present legislature to their proper resi- dence ; and one thousand copies of said report shall be pro- vided for the use of the next legislature of this state. Approved March 8, 1889. REPORT. To the Honorable Edwin C. Burleigh, Governor of the State of Maine: The Commissioners appointed by your Excellency under the foregoing resolve of the Sixty-Fourth Legislature organ- ized on the nineteenth of November, 1889, and at once began, an examination of the general subject of taxation, within the scope of the resolve, which is sufficiently broad to allow all necessary research for improved methods. Our first endeavor was to determine what were the defects of our present system which afford just cause for complaint, and which, in the judg- ment of the legislature, make the inquiry necessary. The Commission selected A. M. Goddard, Esq., of Augusta, as its clerk whose services have been efficient and valuable. To acquire the desired information, we began to hold meet- ings of the Commission at the State House in Augusta, in December, 1889, for the purpose of hearing parties desiring to be heard and for discussion. We invited discussions through the press of the State by notice in the leading news- papers of the several sections and sought, by correspondence and interviews with persons whom we thought to have had experience in matters of taxation and by circulars of inter- rogatories to boards of assessors, to inform ourselves in rela- tion to the particular provisions of our present statute which are defective or inadequate and as to its deficiencies. After an extended investigation of this kind, we began an examina- tion into the systems of taxation in vogue elsewhere in this country, and to do this systematically and in such way as to gain the most information in the time allotted us, we pro- 4 REPORT OF TAX COMMISSION. ceeded to collate and arrange in order an epitome of so much of the tax laws now in force in the several states as are mate- rially different from those of Maine. We did not deem it essential to extend this inquiry into every one of the states, yet it was necessary to make the examination widely compre- hensive, and the Jaws of every state which included any fea- tures which we believed it desirable to incorporate into the system of this State, we have examined with care. Having so examined the laws of the several states sufficiently to acquire a general knowledge, at least, of the several revenue systems, we visited several states, whose systems contain features radically different from ours, for the purpose of get- ting definite information as to the practical workings of such systems. For this purpose, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island and New York were visited, which states represent very well the more pronounced differences of method in raising revenues, as employed in the United States, both for state and local pur- poses. We have also studied with an anxious desire to learn of some method yet untried in this State, which contains the promise of practical efficiency, the theories of several promi- nent economists and writers upon social science. SYSTEMS OF TAXATION. The disposition to conceal property from the assessor has always prevailed. Even in the primitive days of New Eng- land, when the forms of taxable property were few, extra, ordinary methods had to be resorted to to bring all the taxable property under assessment. Perhaps as curious a tax law as any .was that of Rhode Island passed in 1673, as follows : "If the Assembly judge any have undervalued their estate, each shall be required to give in to the Treasurer a true form of an Inventory of all their Estates and Strength in particu- lar, and give in writing what proportion of Estate and Strength in particular he guesseth ten of his neighbors., mint- ing them in particular, hath in Estate and Strengtli to ///,< Estate and Strength." REPORT OB 1 TAX COMMISSION. If property should now he assessed at a valuation set by ones' neighbors, there would be plenty of revenue. The present system of taxation in this State is substantially that borrowed from Massachusetts at the time of the separa- tion, and is the result of an attempt to enforce the principles of the tirst tax law adopted by the General Court of Massa- chusetts Bay, whereby it was enacted : "That every Inhabitant shall Contribute to all Charges both in Church and Common-wealth, whereof he cloth or may receive benefit. And every such Inhabitant who shall not Contribute proportionally to his ability to all common Charges, both Civil and Ecclesiastical, shall be compelled thereunto, by Assessment and Distress, to be levied by the Constable or other officer of the Town." The Commonwealth of Massachusetts embodied this rule of taxation in the Constitution of 1780 in granting the General Court "power and authority to impose and levy proportional and reasonable rates, assessments, and taxes upon all the inhab- itants of and persons resident, and estates lying in said Com- mon-wealth/' It was expressed in the original Constitution of Maine, Art. IX, Sec. 8, as follows : "All taxes upon real estate, assessed by authority of this State, shall be apportioned and assessed equally, according to the just value thereof." Al- though personal estate was not mentioned in the Constitution as subject to equality of taxation, the first tax laws enacted by the legislature after its adoption included as taxable "all estates real and personal" not by law exempted ; and by the seventeenth amendment of the Constitution, adopted in 1875, Sec. 8 of Art. IX, equality of apportionment and assessment was made to cover personal as well as real estate. This prin- ciple of our system and many of its details remain as in 1821. They have been in vogue during the entire life of the State and were substantially the laws of our ancestors under Mas- sachusetts from the beginning. The only alteration* have been the engrafting upon the system, from time to lime, of amendments which were devised to meet the altered con- ditions of business and business methods, mainly from the 6 REPORT OF TAX COMMISSION. oreat and multiplying interests of corporations and in the attempt to bring into the assessment lists the rapidly increas- ing, intangible wealth of recent years. While we have not been unmindful of the various latter- day theories of political economists relating to this compli- cated subject, and confess to having been compelled to acknowledge the logical soundness of many views advanced, which are at variance with the conclusions at which we have arrived, yet, after such deliberation and study of the per- plexing facts involved as we have been able to give them, we have decided that it were better to err upon the side of con- servatism, in a matter so far reaching and important as this, and bear some of the ills of a time-honored system, "than fly to others that we know not of." "A system," says an able writer upon the Inequalities of Taxation in Massachusetts, "which has been thus developed by the experience of an intelligent and practical people during so long a period, and to which all social and business interests have become adapted, cannot safely be essentially changed except by a gradual and experimental process. ' We have also believed it inexpedient to recommend any changes of the law which cannot be made without changes in the Constitution. Yet we have not been so conservative as to hesitate to recommend a radical change in several respects, where an antiquated method, unsatisfactory in results, could be readily altered to a method which in many states has been found to yield excellent results, and involving no constitu- tional objections. In other words, our veneration for the old has not prevented our acceptance and recommendation of sev- eral important changes in our system, where the practical experience of other states has shown such change to be safe and salutary. The principal changes of this kind which we have embodied in the proposed act herewith submitted, are the provisions for a permanent board of State Assessors, and a new method of State valuation and equalization. Our present system lacks a head a central, controlling supervi- sion of the important details so necessary to render any REPORT OF TAX COMMISSION. financial system, and much more a system so far reaching and vital as that of raising revenue, efficient. This we have tried to remedy in the bill herewith. The other changes, which are quite numerous, are in the nature of amendments and additions to the present system, so as u o include new sources of revenue, and especially by making the listing of property more peremptory and effective. The tendency of the theories of many able writers upon the tax problem is towards the single tax a tax on land values. Indeed, that is the system which most European countries have now adopted, relieving all money, evidences of debt, and in son.e instances all personal property, from any taxa- tion whatever. In view ot the prominence this theory is, assuming in this country at present, we have felt it our duty to examine it, although mindful of the instructions of the resolve undtr which we were acting, "to provide for a more equal, just aid equitable system of taxation of all kinds of property." It is by no means new. Judge Cooley, whose legal works are standard in the courts of the country, writing in 1*76, after enumerating several principal objections to the assessment of personal property that it must necessarily be inquisitorial in its operation ; that it destroys privacy in busi- n-ss and family concerns; induces false swearing; leads to faud ; often discriminates unjustly between residents and ion-residents ; leads to double taxation, and requires a larger force and more frequent assessments than would otherwise be necessary says : "These are objections which every one feels and appreciates ; others, which are more obscure, need not be mentioned. A tax on land is not open to these objec- tions. Whenever the law seeks to tax land and personalty with equality, the land pays much the greater portion of the tax, because this can all be reached and* all be taxed; no inquisitorial proceedings are required to discover it, and no frauds or evasions can conceal it from view. These and other reasons have led some political economists to advocate the omission of personalty from the customary taxation by 8 REPORT OF TAX COMMISSION. value, and the raising of the ordinal y state revenue by tax laid exclusively on land and a few other objects which, like land, are open to constant public observation and inspection, and in respect to which neither would harsh sifting processes be required, nor evasions be practicable, nor frauds incited. Such a tax, it is claimed, while nominally falling upon a few, would in fact be diffused through the whole community, and collected from all by being added to the price of \vhi\l is pro- duced and distributed by the classes taxed, just as we have found that a tax upon any common article of consumption is paid in the end by the consumer, and is no more burdensome to the dealer who nominally pays it than it is to/any other member of the community of consumers." Coolej on Taxa- tion, (Jli. /, Page 29. While this distinguished guthor does not directly indorse the single tax theory, he mates it appear very alluring. The above very fairly states the Substance of the Henry George theory, excepting that the distinguished Single Tax apostle denies that the tax on land values is shifted to the consumer. President Ely of Johns Hopkins University, a promiaent author of social science works, in a supplemental report as one of the Tax Commissioners of Maryland, while not approv- ing the single tax theory, yet advocates with great force u system which should ' 'assess to the last dollar of its true valiu all real estate held for speculative purposes," and would have land bear by far the greater share of the public burden and would specially exempt altogether from assessment mortgages, promissory notes, book accounts, simple contract debts and other private securities, and he lays it down as one of the fundamental principles of his system that as few things as possible should be taxed and that "in the selection of objects for taxation great care should be taken to reduce interfer- ence with business and professional pursuits to a minimum." An intelligent advocate of the single tax system residing in Knox county, in a letter to the Commissioners bespeaking for the system the attention of the Commission, gives an outline of it as follows : REPORT OF TAX COMMISSION. 9 "Taxes on the products of labor tend to restrict produc- tion. To one who has given that study which you have done to economic questions, it is unnecessary to argue this point. You will, I am sure, accept it as established at the start. Therefore, it is urged, no taxes should be imposed on improve- ments or commodities, if the necessary revenues can be obtained without resorting to that source. "A tax on land values does not restrict production or le^en the reward of the users of land as such. On the contrary, by making it unprofitable to hold land out of use, it always operates to open natural opportunities for labor and capital, and so stimulates production. Therefore, all taxes should be levied on land values, and none on the fruits of industry till the full rental value of land is taken for the purpose and proves insufficient in amount. We believe that it would be amply Miffieient. "Every man is entitled to the full results of his own labor or enterprise in producing wealth ; but that value which attaches to land by reason of the increased competition for the privilege of using it, and which is due to the growth of population and public improvements, justly belongs to the whole community. Therefore, the public should take by taxation the full rental value of land, at least to the extent of thft revenue needed for all purposes of government and the cost of all public improvements. "Government being supported by the ground rent, now going as 'unearned increment' to individuals, and industry being relieved from taxation, land speculation would cease and natural opportunities be opened to labor. Workmen unable to get the wages they should, would be able to employ themselves and receive the full product of their labor, and capital would enjoy the same advantage, being relieved of the landlords' tribute. There could then be no lack of employ- ment, and wages would rise to their natural level, the full earnings of labor. The labor problem is, how shall all men willing to work always find opportunities to do so and thus produce the wealth that they need? The single tax would, it is claimed, solve that problem. "This argument is presented completely and most ably in the great work of Henry George, 'Progress and Poverty,' 41 nd I trust you will not permit the Commission to make a report to legislature without giving a fair and unprejudiced consideration to the fact adduced and the reasoning contained in that book." TY 1 10 REPORT OF TAX COMMISSION. A prominent lawyer in Penobscot, in an able paper read before an agricultural society two years since, condemned our laws taxing personal property, and recommended the single land tax as not open to objection, but concluded by stating the very obvious fact, that such a tax "could not be practi- cable, however, unless adopted by all the states." The era of inter-state uniformity of tax laws is yet exceedingly remote,, and so is the millennium. Another great hindrance to the adoption of "a land-tax-only" system is the wide disparity of condition between the great business centres and the village and rural districts. The farmer or village resident whose property "all lies out of doors" cannot be induced to look with favor upon a system which would tax his farm to its utmost value, while the money, bank stock, piano, tine horses and carriages and stock in trade of his wealthier neighbor were passed over by the assessor. We cannot believe that the time has yet arrived when such a system is adapted to a state like ours, and we are very positive that Maine would refuse to lead in a system entirely untried by any state in the Union. In spite of the theories of the many brilliant writers on taxation for half a century, and notwithstanding the obnox- ious features of a general property tax have long been held up to the people as the embodiment of all that is iniquitous in morals and destructive of business prosperity, no state has yet turned from the evil of its ways in enforcing its revenues, in part at least, from personal property. Indeed this method is becoming yearly more fixed and general. It has come to- be recognized as the American system as distinguished from the systems of other governments where the objects of taxa- tion are fewer and where property is rated at its income value rather than at its selling value. We believe the people of this State do not desire to abandon the general tax system. In view of that fact, our object and effort has been to adapt the laws to the system. If a large portion of the revenues must necessarily continue to be raised from a general prop- REPORT OF TAX COMMISSION. 11 erty tax, the laws must be made to reach the property. \Ve have no sympathy with the idea that because some men will defraud the revenue ; because they will conceal property,, commit perjury and resort to all conceivable trickery to pre- vent taxation, therefore the whole classes of property which they would thus hide from the assessor should be- exempted by law. The substance of the complaint in Maine is that personal property is not reached for taxation ; that those who have most of it escape their just portion of the burdens of the government; that in consequence, real estate and tangible personal property, such as the farmer and the village real property owners possess, bear an undue burden. If this com- plaint is just, then the remedy is evident, make a law which shall bring the personal property to the attention of the asses- sors and oblige them to apportion and assess it, as the Con- stitution requires, "equally, according to the just value thereof." This complaint is unquestionably well founded. It is a notorious fact proven by all revenue statistics, that not only in this State, but in all the states, the percentage of revenue from personal property, relative to real, is growing less. Indeed, it seems well understood and believed that nothing more is necessary to be done in the way of statute remedies than to provide some means to make personal bear its equal burden with real property. In that direction all efforts for improvement in the laws of the several states are tending. It is in that line that we have wrought out the results we have reached. If the tax valuations of personal property of the whole country were to be consulted for the purpose of ascertaining its financial condition, it would be found to be hopelessly speed- ing towards bankruptcy. From 1870 tolS80, according to the census returns, the assessed valuation of the personal property of all the states decreased from $5,111 ,554,000, to $3,866,227,- 000, while the assessed value of real estate increased more than tive billions. It was seen by these figures that new methods 1'2 REPORT OF TAX COMMISSION. must be resorted to by state legislatures to compel personal property, especially intangible kinds, to bear a more equal share of the burdens. The tax problem at once became a more important one than ever before. State pride was touched. Tax commissions were appointed in many states 4ind vigorous efforts made to prevent such a fallacious repre- sentation of their resources. More rigorous laws were enacted to compel disclosures of property and to hold asses- sors to their duties. Among the states which have adopted radical changes in their assessment laws since 1880 are New York, Massachusetts, Maryland, Connecticut, Vermont, Ohio, Virginia, Wisconsin, Michigan, North Carolina and Pennsyl- vania. THE REMEDY. It is evident, then, that whatever remedies law can supply, wider our system of general property taxation, must be in the direction of equality of taxation. That all taxable prop- erty is not equally assessed under our present laws, and that land and houses and cattle, visible and tangible property, are bearing an unequal share of the public burdens ; and that farmers especially, as a prominent stock raiser concisely puts it, are "drawing at the short end of the yoke," all concede. That this complaint of the escape of much personal estate from taxation, and the demand for a remedy, has not been a mere partisan cry, but a well founded desire for a much needed reform, is apparent from the following extracts from the recommendations of our governors, of both parties, dur- ing the last sixteen years, in their messages to the legisla- ture : \_Gov. Dingley, 1874.] "I most earnestly urge that you should consider whether it is not advisable to devise some method other than direct taxation to secure a part of the revenue required for State expenditures ; so that the rate of taxation may be still further reduced. Pennsylvania finds no difficulty in securing suffi- cient receipts from indirect taxation to support the state government. A large share of the state expenditures of REPORT OF TAX COMMISSION. 1 Massachusetts is met by the proceeds of a state tax upon the valuation of the corporate stock of railroad and other corpo- rations over and above municipal taxation for real estate and machinery ; and upon the business of fire and life insurance companies. Without indicating more in detail what sources- of revenue may be made available to this State, I desire to- call your attention to the subject, and to suggest a careful inquiry and investigation, with a view of devising methods of lifting some portion of the burden of taxation from real estate. Such a policy would give needed encouragement to our agricultural interests, and promote the development of the resources of the State." \_Gov. Dingley, 1.875.] "Without such a radical reformation as will lead all me to be honest and truthful in rendering statements of their property, it is of course impossible to devise any system of taxation which will be absolutely equal ; as capital which is represented by stocks, bonds, loans and currency, can. not be reached by the assessor as readily as that invested in- farms, houses, stores, mills, work-shops, ships and other vis- ible property. At the same time, this liability to inequality should be corrected so far as it is possible. So far as capital is invested, directly or indirectly, in banking, railroad, tele- graph, express and insurance business, it may and should be reached. The last legislature inaugurated steps in the right direction with reference to a part of these interests. I earn- estly hope that you will continue to press forward measures- looking to such a system of taxation as will tend to equalize the public burdens." \_Gov. Garcelon, 1879.] "The average rate of taxation upon real estate and farm property for a series of years has not been less than one and one-half per cent. During the same time a very large pro- portion of the accumulated capital of the State has been virtually exempt from all assessments. Probably more than one hundred millions of the accumulated wealth of this State is invested in mortgages, railroad, municipal, county and State bonds, or deposited in savings banks, and it would seem but an act of justice to enact such laws, if practicable,, as will compel the holders of such property to bear their just proportion of the public burdens." 14 REPORT OF TAX COMMISSION. \_Gov. Davis, 1880.] "The burdens of taxation press heavily upon the people. Every species of property, whether owned by individuals or corporations, should bear its part of the public burden. If there is any property in the State not yet reached by the tax gatherer, or which does not bear its proportionate part, it is your province to ascertain that fact, and make such changes in the laws as may be necessary." \_Gov. Planted, 1881.] "Too large a proportion of the public burden falls upon real estate. This is especially true of all farm property. The prop- erty of the farmer is all visible and exposed to assessment. ******* It is not in the economical expenditure of the public revenue, so much as in seeking new sources of revenues and in equal- izing the burdens of taxation, that you will be able to com- pass such reforms and such relief as will gladden the hearts and cheer the hopes of our people. The public burdens are unequally burne. When all the property in the State is reached and taxed as real estate and all property of farmers "according to the just value thereof," the rate of taxation will be reduced one-half. Then will taxation fall lightly and be borne cheerfully, because it will fall equally upon all. True it is, that absolute equality in taxation can never be attained. A disproportionate share of the public burdens will always be thrown on certain kinds of property because they are visible and tangible. The best system to be sought is that which, in its practical operation, approximates nearest to equality." \_Gov. Robie, 18&3.] "The legislature of 1874 inaugurated a new system of tax- ation, seeking to equalize it by removing a part of the burden from the productive industries of the State and transferring it to capital invested in railroad, telegraph, express and insurance companies, savings banks, and like corporations and business. By repeated changes of law, a system of tax- ation has been legalized and sustained by the constitutional authorities of the State, which has brought a new revenue into our treasury, and thereby lightened the burden on visi- ble property. "The State of Vermont has already provided, by a tax on these several interests, a sum sufficient for all the State REPORT OF TAX COMMISSION. 15 expenditures without assessing a single dollar on the several towns and cities. "I would suggest that the legislature investigate the pres- ent system of taxation, as far as practicable, that measures may he devised to provide that all kinds of property and interests be reached, so that, in a just way, public burdens may be equalized." \_Gov. Bodwell, 1887.] "It may be stated as a maxim that there is no expenditure for which the citizen gets so much in return as for the amount he devotes to paying taxes, and yet there is no subject upon which people are more justly sensitive than that the taxes be equal. If all communities, and all the citizens of each com- munity, paid in equal and proper proportion, there would be no complaint among the people. The grievance arises, in large part, from the inequality of taxation, and the inequal- ity arises, in large part, from the errors in valuation errors in many cases innocently made, no doubt, but still working .hardship in many ways." \_Gov. Burleigh, 1889.] "Our own State valuation finds too large a proportion of our property in the farms of the State and makes the farmers pay an undue share of the general taxes. On the other hand the valuation of the United States Census takes cognizance of the less tangible but more profitable investments which escape their fair share of the common burdens. If there should be a closer inquiry into other forms of property than the real estate, taxation could be more equitably distributed and more exact justice could be done to all citizens alike which is indeed the highest duty of a state government." THE LISTING SYSTEM. A law requiring the listing of property by the tax payer tinder oath, and generally referred to as the "Vermont sys- tem," appears to be considered in this State as a radical inno- vation, something peculiar to Vermont; but the fact is, such a system prevails in a large number of the states. Some features of the Vermont tax laws are new, but its central principle, that of requiring the tax payer to render to the UNIVERSITY 16 REPORT OF TAX COMMISSION. assessors an inventory on oath of all his taxable property, is almost as old as the tax systems of the country. That it may appear how general is this requirement, we subjoin a reference to the assessment laws of most of the states. MASSACHUSETTS In this state the assessors are required to notify the inhabitants to bring in lists of their taxable polls and personal estate, and may or may not require real estate to be included in the lists, and in all cases shall require per- sons bringing in lists to make oath to the same, and a false list subjects the lister to a line of not exceeding $1,000, or imprisonment not more than one year. The valuation is made as of the tirst day of May of each year. CONNECTICUT Assessors mu*t require residents to bring in lists of property owned by them on the first day of each October, and to make oath that said lists are true and that the lister has not conveyed, transferred nor concealed any prop- erty to evade taxation. Neglect or refusal to present and swear to such lists subjects the tax payer to an addition of ten per cent to such valuation as the assessors may prepare from the best of their information and belief. NEW HAMPSHIRE Blank inventories are furnished by the Secretary of State to inhabitants through the assessors in proper form and to contain suitable interrogatories to fully meet the requirements of law, so arranged and formulated as to require under oath full information of the person or cor- poration to be taxed, of the classes in gross and the amount thereof of each class of his real and personal property and the value, by such classes, of his personal property liable to be taxed, and such further information as will enable the assessors to assess such property at its true value. Assessors must make up lists of property for all who fail or refuse to furnish or swear to said lists, and then assess such delinquent four times as much as otherwise would have been taxable to such person. False oath declared perjury and punishable accordingly. REPORT OF TAX COMMISSION. 17 OHIO Assessors must furnish all residents with blank lists to l)e tilled out in detail with an inventory of their taxable property, sworn to and returned to the assessors within ten da vs. The statements required are very minute, must include both real and personal property with value, but the assessors are not bound by such value. Persons claiming not to own property are requested to make oath to that effect. ILLINOIS By an amendment in 1879, a list of property in detail must be returned to the assessors en oath by the tax payer. Refusal or neglect to return such list on oath or the return of a false list incurs a doomage of fifty per cent of entire valuation. Any person who shall refuse, neglect or fail to return required list is guilty of misdemeanor and shall be fined not exceeding $200. Assessors may compel the attendance of any person for examination on oath, whom they suppose to have knowledge of amount and value of the prop- erty under consideration. PENNSYLVANIA Assessors must make up the lists of per- sons and property from the best information obtainable. Xo oath is required of the tax payer, but the assessor is subject to fine and imprisonment for intentionally undervaluing or omitting to value and assess any taxable property. This is for local assessments. By act of 1889, all persons holding moneys, notes, mortgages, accounts bearing interest, stocks, bonds, .-^s- ors may summon and examine witnesses in regard to the statements filed by any person. If none returned, the assess- ors may make valuation from their best information and 20 REPORT OF TAX COMMISSION. belief, and no appeal is allowed. Property concealed or mis- represented by owner to avoid taxation, on discovery must be assessed at not exceeding ten times its real value, and no appeal. NEW JERSEY Lists required in detail of ratable property. Neglect or false return subjects to a double valuation, with no remedy except on proof before County Commissioners that there was no culpable neglect or fraud. RHODE ISLAND List must be returned on oath, but the only penalty for neglect or refusal is forfeiture of all right of appeal or other remedy if overtaxed. VIRGINIA List must be returned on oath under penalty of from $30 to $1,000 for neglect or refusal to make sworn return. No assessor shall receive a list not sworn to, under penalty of $500. By act of 1887, it is provided that in case of failure to return on oath all bonds, notes or other evi- dences of debt by any person, bank or firm, they shall not be recoverable in any action at law or in equity in the courts of the state, until tax is paid, and 50 per cent, per annum from the time the tax accrued, WEST VIRGINIA List must be returned on oath, under penalty, for neglect or refusal, of from $10 to $100, and a forfeiture of tive per cent, of the valuation of all property omitted, to go to the informer. OREGON List must be made on oath, under penalty, for neglect, of $20 fine. MISSOURI List must be returned on oath. Neglect or refusal subjects the tax payer to a fine of not exceeding $1,000, and forfeiture of right of appeal. GEORGIA A constitutional provision in this state makes a tax defaulter ineligible to a seat in the legislature. No oath is required to list. KENTUCKY List must be returned on oath. Neglect or refusal incurs a fine of $100 and treble taxation. County Attorney must enforce the fine. REPORT OF TAX COMMISSION. 21 SOUTH CAROLINA A list on oath is required with very minute statement. Refusal to swear is contempt, punishable by imprisonment. Property omitted from list must be added with 50 per cent, additional. ARKANSAS A very detailed statement is required of the tax payer on oath or affirmation. Wilful omission is made a misdemeanor, punishable with a fine of not exceeding $100, and imprisonment not more than three months. It is made the duty of the assessors and prosecuting officers to bring offenders against these provisions to trial. The assessors are bound under penalty of a fine not exceeding $50 for each offence, to require sworn inventories of taxable property. That this plan of requiring sworn inventories of taxable property is open to the objection of being inquisitorial is undeniable, but it is difficult to conceive of any method of assessment of general property that is not more or less inquis- itorial. It is doubtless much more agreeable to have no questions asked no attempt made by the assessors to find one's property for entry on his lists but that method has been often tried with very unsatisfactory results. Indeed, it is on account of its insufficiency that the legislature is trying, through this Commission, to devise a better one. That the state has a right to demand this scrutiny into the affairs of the people, if just and equal taxation require it, there can be no question ; yet, there should be no needless exposure of private business and property to the public. We have made provision for protection of this kind in the bill. The inventories returned by the tax payers are not open to public inspection, and the assessors must not disclose their contents, being under penalties if they do, excepting to a few designated officers if necessary in the prosecution of violations of the act. This is not a new feature, even in Maine. The law in all cases directs that the assessors may require the lister to make oath, and it imposes a penalty for the non-production of an inventory, by depriving the tax payer of the right of appeal 22 REPORT OF TAX COMMISSION. if unjustly taxed or over-assessed. If these provisions are just and salutary in their weakness, we believe they will prove much more so by being made strong and mandatory. The proposed law is not, therefore, an innovation, but the making prominent and potent of measures which our tax laws have always contained in a diluted and inefficient form. The bit- terest antagonists of such required returns of property are invariably those who wish to avoid a fair and full assessment of their property ; who, having long escaped paying their just share of taxes, desire to perpetuate their exemptions, and shift the burden they can easily bear upon the shoulders of their neighbors whose property may be open and visible to the assessor. From such objectors is sure to come the attempt to arouse public sentiment against such a law by alleging that it is inquisitorial, and an obnoxious intermeddling with private affairs. Let those whose property is in land, houses, farms, stock and other forms of visible property, see to it that those who unfairly escape, may, by the only fea- sible mode which law can provide under our Constitution, be compelled to bear their own just portion of the tax load. RESULTS OF THE LISTING SYSTEM. We have endeavored to find what has been the result else- where of the practical application of this method of getting at property for the purpose of taxation. Theory is one thing ; practical tests are often apt to show quite another thing ; especially is this true of theory and practice in the matter of taxation. We have, therefore, selected three states in which the "inquisitorial" method is most specific and searching, and three states in which there is little or no attempt to hold the tax payers to any accountability in respect to disclosing their property to the assessors*. If in the one case it shall be found that personal and intangible property is made to bear with more equality its share of the public burdens, as compared with real and tangible property, than in the other case, it will be an argument of weight in favor of the method under which such a result is produced. REPORT OF TAX COMMISSION. ~2 The three states having the "listing-under-oath" method which we will select are Ohio, New Hampshire and Vermont, and the three having most nearly an opposite method : New York, Michigan and Maryland.* The following table shows the last valuations of real and personal estate in the states named, for purposes of taxation, the aggregates and the percentage of the personal to the whole valuation : Per cent of Real. Personal. Aggregate. Personal. Ohio, .$1,173,100,705 8515,569,463 81,688,676,168 30 5 N. Hampshire, 120,6-29,345 61,983,716 182,613,061 33. 1 > Vermont, 110.385,75* 49,8^0.623 160.266.376 31.1 New York, 3.213,171, 201 354,258.556 3,567,429,757 9.6 Michigan. 432.861,884 84,804,475 517.666.359 16.4 Maryland. 368,442.913 128.804,762 497.307,675 25 S NEW HAMPSHIRE. The assessment law of New Hampshire as amended by the legislature in 1879, requires inventories on oath from all tax payers tilled out in detail, and a wilful neglect or refusal sub- jects the delinquent to a doomage of four times the amount he would otherwise be legally taxed. False swearing to list is made perjury. The penalty is regarded in the state as too severe and serves often to defeat its object. Assessors can- not be made to assess a full legal tax on a person's property and then quadruple it. For that reason the law fails to accomplish what it might otherwise accomplish. We visited Portsmouth and Concord to investigate the practical workings of the law. The fact that the personal property amounts to thirty-four per cent ot the aggregate valuation of the state, exclusive of deposits in the savings banks, is pretty conclusive evidence as to the effectiveness of *XOTE The Maryland Tax Commission has recommended a law requiring lists to be re- turned by tax payers subject to examination on oath and penalty of imprisonment not less than one nor more than ten years for false returns. In Michigan a new law was enacted at the recent session of its legislature, making more exacting provision for return of lists on oath and providing that, in case ol failure by a tax payer to make such return of his property, the supervisors may examine "any other person or persdu>" as to the value of the delinquent's property. This would appear to be a step back- ward to the ancient Rhode Island system of getting one's valuation from his neighbors. 24 REPORT OF TAX COMMISSION. the system. From Hon. John M. Hill of Concord, Chairman of the State Board of Equalization, we gained much information about the practical results of the inventory method of assess- ment. He assured us that its operation was most satisfac- tory and had brought to the notice of the assessors much per- sonal property, especially bonds, notes, cash and other forms of intangible assets that had before escaped. The money on hand and at interest in 1889 which was inventoried amounted to $7,920,348. And this is in spite of the fact stated in the report of the Equalizing Board in 1887, as follows : "The commissioners having been requested by the Board to ascertain how generally individual inventories were sworn to, report that they generally were sworn to, yet, in one large county in three towns only was it done, and, in another large county, only in about half of the towns." This failure to make oath was believed by the officials whom we consulted, to be due to the neglect of assessors in these towns to enforce the quadruple doomage. It was believed if the penalty were but half as severe, the law would be better enforced. The law is handicapped by its severity, yet its general result is beneficial. ,1 THE VERMONT LISTING LAW. The present tax law of Vermont was enacted in 1880. The last assessment of real estate before the law was passed was in 1876. It is interesting to compare with this the vari- ous state valuations since this law, known as the grand list law, has been in force. In 1876 the total assessed valuation of real and personal property of the state was $99,717,603. In 1889 it was $160,847,357, an increase of $61,029,754. The personal property of the state in 1880, just before the passage of the grand list law, was assessed at $15,370,152 and the real estate $71,436,623, total $86,806.775, the per- sonal property being less than 17 per cent of the aggregate. In 1886, the valuation of personal property had arisen to $49,927,597 or more than 200 per cent increase above the REPORT OF TAX COMMISSION*. / 25 valuation of 1876, while the real estate had increased but 38 per A correspondent writing from St. Albans, giving a detailed statement of the finances of Vermont, says: "A comparison of the assessed valuation of real and personal property in 1876 and 1889 in this state shows a very large increase dur- ing this period. It should not be forgotten that the additions to the grand list since 1876, by new buildings, improved real estate and industrial development have been very extensive. The grand list was also largely increased by the new grand list law of 1880, which resulted in the assessment of a large amount of personal property that had hitherto escaped taxa- tion." This statement we found fully corroborated by the testimony of state officials and others in Montpelier and Burlington. Lieutenant Governor Woodbury informed us that in Burling- ton the assessed valuation of property was nearly doubled in one year after the law went into effect, the increase being chiefly in personal property. In 1886 the assessed valuation of personal property in Burlington was about 42 per cent of the total valuation. Contrary to what we had been led to believe, we found that the Vermont grand list law is very popular among the tax payers. We interviewed many business men and con- sulted the assessors of several cities. While for a year or two the "prying" qualities of the statute were somewhat dis- tasteful, when it was found that "all were served alike" and that the tax rate went down as the aggregate valuation of property went up, the law was accepted and acquiesced in as, on the whole, very beneficial to the state at large. /This grand list law is not the only reformation V r ermont has made in its tax laws recently. In 1882 the legislature passed a corporation tax law which was designed to yield revenues enough for all the state expenses which had before been derived from a general tax on polls and property. It provided for a direct assessment upon the. business done in 26 REPORT OF TAX COMMISSION. the state by railroad, insurance, guarantee, express, tele- graph, telephone and transportation companies and savings banks and trust companies. This law took effect in 1883. While the taxes yielded by assessments under this act amounted to $250,000 in 1889, the state found it necessary to levy a tax of two mills on the dollar upon property, amount- ing to $353,412. It will evidently be some time before the state can dispense with a property tax for state purposes. The effect of the grand list law is very clearly seen when the rate of state taxation before and after its passage are com- pared. For the three years immediately preceding its pas- sage the rate averaged three and one-third mills on the dollar. While for the three years succeeding its passage, and before the corporation tax act took effect, the average rate was but one and a half mills. If it is inquired : "Has not this inquisitorial and oath-com- pelling law driven property out of the state?" we are able to reply that we have found no evidence of it. We made special inquiry as to this point. While much money is being invested in Western speculations in which particular Ver- mont is like all the rest of New England there has been no loss of property or of business, so tar as we could learn, by- reason of the new system of taxation./' EQUALIZATION. Governor Bod well, in his address to the legislature, in Jan- uary, 18*7, called its attention to the need of an improved system for equalizing the valuation of the State, as follows : "It should be made the steady aim of the Legislative power of the state to equalize the burdens of government. To that end I recommend that an earnest inquiry be made into the mode of our valuation, with the view to its improve- ment. A board, composed of one commissioner from each county, hastily summoned at the close of each decade, with each member naturally endeavoring to have his own county valued at as low a rate as possible, would not seem to be the best method devisable. And yet, that is the character of our present system. A smaller number of commissioners, say REPORT OF TAX COMMISSION. 27 not exceeding three, at work for a longer period, chosen, not as the representatives of the counties in which they may reside, hut for the whole state, would he less cumhrous, less expensive and in many ways more efficient. The systems of valuation in force in other New England states should he carefully examined. Some improved methods in tho-e states could, I have reason to believe, he profitably incorporated in our own system." Many petitions were presented to the legislature of that year, asking for legislation which should make taxation more equal. Nothing, however, was accomplished. It is obviously impossible for any committee of the legislature, in the hurry of a brief session, to make such a study of the subject as to enable them to agree upon any important changes in the sys- tem, such as the request in these petitions involved. In his inaugural address, in January, 1889, Governor Bur- leigh cogently exposed some of the evils of the present mode of equalizing the valuation of the State. He said : "It will be j'our duty to provide for the valuation of the property of the State which is required by our Constitution 'at least once in ten years.' It doubtless gives greater satis- faction to have a board composed of one representative from each county, and I therefore recommend that the board of valuation be thus constituted. In some respects, however, evil results have followed from the zealous and yet proper care taken, that no section shall be taxed more than its tail- share of the public burdens. Each county sedulously guard- ing its own interests and securing as low a valuation as pos- sible, the result has been that the aggregate official valuation of the State has been far below its real value. In this respect the State of Maine has not been presented to the country in as strong a financial position as she is entitled to hold. We negotiated our war loans on a valuation of one hundred and sixty-two millions of dollars, and if it had been really believed that that sum represented the actual wealth of the State, we could not have so readily placed an aggregate loan that amounted to five per cent of our total property. The valuation taken by the United States Census comes nearer doing us perfect justice than the valuation taken by the State, for in 1870, when the State Board of Valuation said Maine was worth 8225,000,000, the United States Census fixed the valuation at 8348,000,000. In 18*0, when the 28 REPORT OF TAX COMMISSION. State government said Maine was worth $236,000,000 the United States census fixed the valuation at $511,000,000. "If the incredulous may think the last figures of the United States Census were too high those best acquainted with the extent of our resources and of our recent development in many directions will agree that it is very much nearer the actual amount of the property in Maine in 1880 than is given in our own valuation." Governor Plaisted urged upon the attention of the legisla- ture of 1881, the necessity of more frequent readjustments of the valuation of the State. In his address to the legislature he said : "This equalization of the public burdens so devoutly to be wished and so earnestly to be sought is a subject that should command your especial attention. Without the determina- tion of values for the purpose of taxation, there can be no equalization of the public burdens. Values should be read- justed oftener than once in ten years. State boards of equal- ization, or tax commissioners have been created in many states of the Union, for the determination and readjustment of values and the discovery of new sources of revenue for purposes of taxation." EQUALIZATION IN OTHER STATES. The methods adopted to keep valuations equalized in man}' of the leading states are here given : MASSACHUSETTS The treasurer is ex-officio, tax commis- sioner. A deputy tax commissioner who has charge of the whole work reports to the General Court on equalization and apportionment and the number of polls every third year. The deputy tax commissioner is also commissioner of corpo- rations. Returns of local assessors are made to him, also returns of corporations, from which he prepares abstracts and makes up the apportionments. NEW HAMPSHIRE The legislature makes apportionment and equalization ever} fourth year, on report of the state board of equalization, consisting of five members appointed by the supreme judicial court and commissioned by the gov- ernor. Inventories of property are returned to the secretary REPORT OF TAX COMMISSION. 2 of state annually by selectmen of towns and by county com- missioners quadrennially. The county commissioners consti- tute a board of equalization for each county and are required once in four years to visit every town in their county and personally inspect property subject to taxation and equalize values. One member of each county board with the state board constitutes a joint board of equalization. CONNECTICUT The state treasurer and comptroller consti- tute the state board of equalization. They equalize the assessment lists of the towns every year. Upon their return of valuation, the state taxes are apportioned. VERMONT City and town "Listers" make up lists of taxa- ble property anfl polls and return the same to their respective town clerks on or before April 15, yearly. Town clerks pre- pare in form prescribed by law, abstracts of lists and return the same to the secretary of state before July 1, yearly. And from these abstracts the secretary of state (having reference to equalizing board in "quadrennial" years) makes up the state list, which is the basis for the apportionment of the state tax. Town listers to return new appraisal of real estate t every four years. The county equalization conventions, made up of one lister from each town in the county, meet in the shire towns of their respective counties in August in the }^ear of quadrennial appraisal, and average the valuations and return corrected lists to the secretary of state. The state equalizing board, made up of one member from each county convention, meets on the third Tuesday of August of quad- rennial year, and makes report and transmits the same through the secretary of state to the legislature on the second Monday of October. This valuation, after approval by the legislature and with such corrections as are by law authorized to be made from year to year, is to stand for four years. KANSAS The assessors of the several towns in each county meet in their respective shire towns annually on the first Monday of March and agree upon an equal basis for valua- 30 REPORT OF TAX COMMISSION. tion of property. The county commissioners of each county, constituting a board of equalization for their respective counties, meet annually, on the first Monday of June, and equalize the value of real property. Clerk of court forwards to state auditor an abstract of the assessment roll of real property and of certain personal property. The state board of equalization, consisting of the secretary of state, auditor and treasurer, with power to appoint assistants, meets each year, on the second Wednesday of July and apportions and equalizes the state tax among the several counties. IOWA The executive council constitutes the state board of equalization, and meets in July of each year in which real estate is assessed. This board equalizes from abstracts returned by county boards. Tlie county boards of equaliza- tion consisting of the county supervisors, meet in their respec- tive counties each year in June, and equalize the assessments of the several towns in their respective counties. The town boards of equalization consist of the township trustees. MINNESOTA County boards of equalization, consisting of the county commissioners, or a majority of them, and county auditor, equalize all valuations in their respective counties from returns of towns. The state board of equalization con- sisting of the governor, state auditor and attorney general, with one qualified elector from each judicial district, appointed by the governor, with consent of the senate, meets annually to equalize state valuation. MICHIGAN The state board of equalization, consisting of the lieutenant governor, auditor general, secretary of state, state revenue commissioner and land officer, meet periodically for purpose of equalizing the state taxes. ILLINOIS State board of equalization, consisting of one member from each congressional district, and elected by the people every fourth year, with power to appoint assistants, equalize valuations and apportion state taxes every year. REPORT OF TAX COMMISSION. 31 PENNSYLVANIA Equalization board, called revenue com- missioners, consisting of auditor general, state treasurer and secretary of state, meet triennially. The county commis- sioners of the several counties return to the board aggregates of all taxable property as returned to them by town asse>.M>rs. The revenue commissioners then equalize "as far as possible to make all taxes bear equally upon all property in the com- monwealth in proportion to its actual value." XEW YORK There are three state assessors appointed by governor, who with the commissioner of the land office, con- stitute a >tate board of equalization. This board equalizes the valuation of the state annually. The state assessors must visit each county once in two years and prepare statistics and facts relating to the value of property of all kinds. WISCONSIN The town board of review consisting of super- visors, clerk and assessors of cities and the president, clerk and assessors of villages, meets annually on last Monday of June, for purpose of equalization, and constitute a board of appeal. Town boards make return of aggregates to county clerk, who in turn transmits abstract to secretary of state. The state board of equalization, consisting of secretary of state, treasurer and attorney general, meets annually, and equalizes values preparatory to assessing state tax. County board equalizes annually as basis of county tax. CALIFORNIA The state board of equalization consisting of the comptroller (ex-officio) and two other members appointed by the governor, and provided with a clerk, equalizes bien- nially. State board of equalization may fix the rate of state tax in the absence of action by county board of supervisors whose powers under the California code are very large. The latter equalize annually for county purposes and every county tax not exceeding one per cent of valuation. For taxation purposes, the county is the unit. By act of 1889, the state board of equalization is charged tvith the duty of assessing railroads. 32 REPORT OF TAX COMMISSION. The following states also have boards of equalization r Arizona, Colorado, Idaho, Nebraska, North Dakota, South Dakota and Wyoming. Ohio is the only state, we think, besides Maine, in which the valuation is equalized but once in ten years. In his annual message, January, 1887, Governor Foraker said : "The last decennial appraisement of real estate (1&80) was had at a period of great prosperity, it was a time of high val- ues ; since then there has been a heavy decline; farm prop- erty is from twenty-five to fifty per cent, cheaper to-day than it was then. * The valuations placed upon the real estate of these cities (certain large cities of the state) are in the aggregate fifty per cent of their true value in money, and, in some cases will not exceed twenty- five per cent." Thus were the depreciating farm lands made to pay more and the rising city lands less than their share of taxes for a portion, at least, of the decade. Precisely the same thing- has occurred in Maine as will be seen by a glance at the table in the appendix. That table was made up before the report of the valuation- commission for 1890 was made, and shows an increase since 1880 of $30,880,069 in valuation of the state, including wild lands. This increase, however, was in eleven counties only, while in five counties there was a decrease in value of $2,481,- 320. It is clear that for a portion of the ten years the five losing counties, farming counties in every instance, have been paying more than their share of state and county taxes, and that the eleven counties making the gains, counties in which the cities are situated, have been paying less. In other words, burdens belonging to the prosperous and wealthy counties to carry have been placed by this system of decen- nial equalization, upon the counties which are growing poorer. This $30,000,000 of increase at two and one-fourth mills on the dollar, the present tax rate, would have yielded the State $(-57,500 per year. Or taking $3,000,000 as the average yearly increase for the ten years, the tax on it would have averaged $33,500 per year, which other property has unjustly been obliged to pay , aggregating for the whole period $635,000. REPORT OF TAX COMMISSION. 33 STATE ASSESSORS. The want of a central supervising head to our tax system we would supply by having a state board of assessors whose duties shall include among others, the general oversight of the state revenues, the assessment of such corporations as pay taxes directly to the state, the formulating and prepara- tion of blank lists for returns of tax payers to the local assessors ; the inventories of assessors ; blank books for annual return of aggregates by local to state assessors ; the apportionment of state taxes voted by the legislature and the enforcement of taxes, delinquent, upon wild lands and ID unincorporated places. A not less important function of the state assessors in the plan we recommend, is that of state board of equalization. It is made their duty to equalize the valuation of the state biennially, in order that taxes voted by each legislature may be assessed on a new valuation, as it actually exists at the time of the assessment. It will also be the province and duty of the state assessors to preserve and report tabulated statistics of taxation and valuation of the different classes of property in the state, which have never been heretofore kept. In respect to such statistics, our archives are singularly deficient. Nothing of our valuation has been officially preserved excepting the decennial valuation in the aggregate by towns, of the valuation commissioners. And these do not distinguish between real and personal property. The resolves under which they have been appointed from time to time have not required anything more than aggregate val- uations and polls to be reported. There is no record of the amount and value of personal property or of real estate sepa- rately assessed ; and no data whatever from which may be learned the progress or regress of the state or of any county or section of it in the amount and value of the several classes of assessable property ; of the cattle, horses, buildings, stocks, mortgages, money at interest, ships and vessels, stocks in trade and the like. Such statistics for the last few decades 34 REPORT OF TAX COMMISSION. would have been very serviceable to us in ascertaining what property, and to what extent, has escaped its share of taxa- tion, and to what extent the law, the assessors or the collect- ors have been responsible. No state, we think, is so much remiss in this respect as ours. A letter to the secretary of state of any state from which we have desired statements in detail of valuations, has brought the information in reports of auditors, comptrollers, state assessors, tax commissioners or equalization boards, while we have called in vain upon the records of our own State for much needed data, whereby comparative research could be made. Thus constituting the state assessors an equalizing board will insure a more frequent equalization of values by officials who would be independent of local influences. Such a change has long been urged upon the legislature by successive gov- ernors, and we believe is generally demanded throughout the state as promising a substantial measure of relief. The plan embodied in the bill is to have three state asses- sors, to be appointed by the governor with the confirmation of the council. It appears to us reasonable and proper that a board vested with such powers and duties should be removed as far as possible from the suspicion of partizanship, and made as independent of party as our system of government will permit. We recommend therefore, and so provide in the bill, that one of the associate members must be taken from each of the leading political parties. That the knowledge and experience gained by these officials may be utilized for the state their term of office is fixed at six years and the term of but one is to expire the same year. The office, it will be readily seen, is no sinecure. It requires the highest order of ability, intelligence and char- acter. Such men as are necessary to fill the position with the greatest benefit to the people cannot be found for small pay. The salary must be in some degree commensurate with the important service required. The sums named in the bill as salaries are certainly as small as will secure the talent required. REPORT OF TAX COMMISSION. 35 The cost to the state directly of making such equalization as can be made under our present system in a single ,>ear is $1(),000. It is impossible to estimate the cost to towns for sending officials and counsel to Augusta to secure lower valu- ations but it must amount in the aggregate to thousands. Massachusetts pays its deputy tax commissioner a salary of $2,750 and to his assistants in the aggregate, about $ti7,000 more, annually. New Jersey has four state assessors at a salary of $2,500 each and expenses. Maryland pays her tax commissioner 82,500 a year and travelling expenses to the amount of $800. In none of these cases do the officers also have to perform the duties of an equalizing board. The duties of the state assessors will certainly not be less onerous or important to the public than are those of the railroad com- missioners the amount of whose compensation is the same as we suirgest in the bill for the state assessors.* INCOME TAXES. Many theories, in the discussion of the tax problem, advo- cate an income tax as the fairest form of taxation. In theory there is much to sustain it. In practice it is almost universally a failure. In theory it seems just that a person should be taxed upon the net yield of his occupation or investments the best gauge of his taxable ability, but in the levying of such a tax it has always been found that art, subterfuge, evasion and downright perjury have rendered the system inefficient and futile. To tax capital, property, lands and also the income arising from their employment is intolerable as double taxa- tion ; to exempt such property and rely on the income from them alone leaves open a hundred ways for evasion and is *XOTE The Special Tax Commission ol Connecticut forcibly reco ivnend a permanent tax commission for that state. They say in their Report to the General A.- -e. ably : "We believe that the time has now come when such a measure mu*t be adopted in ordci r<> make our tax system accomplish its design. The additional expense attached to the creation u; a ;K-\V office, will, we are confident, be repaid many fold to the state itseif by the increase of revenue which may fairly be anticipated from the general supervision over its assessment and collection to be received by the tax commissioner, while the adjustment of the state taxes between the towns can hardly fail to be made with more fairness and equality." 36 REPORT OF TAX COMMISSION. open to grave objections as being in conflict with the consti- tutional provision requiring that all property shall be taxed according to its just value. It has been tried in several states, but has proved unsatisfactory in all, and it is a potent argument against this form of taxation, that in the efforts that have been made in most states of the Union, during the past ten years, to find new sources of revenue, there has been so little disposition to resort to income taxes. In North Carolina, by act of 1889, a tax of one per cent was laid on incomes derived from property not otherwise taxed, and of one-half of one per cent on salaries and fees allowing the individual return- ing his income to deduct $1000 for family expenses. Virginia has a general income tax law, but judging from its results to the revenue of the state it appears to be much "more honored in the breach than in the observance," as only about $16,000- is realized from the tax on incomes in a year. Massachusetts nominally taxes "so much of the income from a profession, trade or employment as exceeds the sum of $2000 a year," but according to the assessors' lists the number of individuals whose incomes exceed that sum is surprisingly small. The only other state, in whose revenue system the income tax is a feature, is Pennsylvania, where a special tax is levied on the income of private bankers and brokers. Writers on taxation who are most opposed to taxes on gen- eral property are not agreed as to the justness or feasibility of income taxes. Judge Cooley vigorously opposes this form of taxation as follows : "Income taxes are inquisitorial and teach evasion and fraud. No means at the command of government has ever enabled it to arrive, with anything like accuracy, at the incomes of its citizens. They resist in all practicable modes, not only because they desire to avoid the public burdens which they are certain are not equally imposed, but also because they are not willing that their private affairs be exposed to the public." It is as difficult to apply such a tax in this age as it was in Rome under the Empire when torture was applied b}' the assessors to ascertain the profits of employments. REPORT OF TAX COMMISSION. 37 We have seen this form of taxation advocated by well mean- ing writers as being in the interest of farmers. If it were practicable to set at all incomes for taxation, the tanner would be benefited as all other classes would be by the consequent lessening of general property taxes, hut, under the practical workings of such a method, the farmer would be placed at great disadvantage and put to much vexatious labor. It would not only become necessary for him to keep strict account of his receipts and expenses but also the value of the farm prod- ucts consumed on the farm, for such products would assuredly be a part of his income applied toward the support of his famiiy. In view of the facts above stated, we have not thought it advisable to include an income tax in the system herewith proposed. Clergymen, professors of colleges, clerks and sal- aried officers, could thus be reached quite effectively doubt- less, but it is not thought that it is required that these should be singled out for a special mode of taxation, especially as many have houses or other taxable property in which their incomes, .above the cost of living, is invested. THE TAX ASSESSOR. Whatever system of taxation may be adopted, the responsi- bility for its efficient and just operation must rest largely upon the assessors. They are to fix the values and upon their activity and faithfulness, in a good degree, depends the bring- ing to light much property for purposes of taxation that would otherwise escape. The assessor, above all other town officials, should possess the attributes of intelligence, sound judgment and courage. He should be a man who cannot be bribed or CMJoled from the strict line of his duty, to "assess all property equally and according to the just value thereof," as required l-y the imperative mandate of the Constitution. Then- is no more responsible officer under our town system of government, the whole fabric of which may be said to rest and its institutions to operate through and by its system of 38 REPORT OF TAX COMMISSIJN. revenues. Recognizing the vital importance of sound and sure provisions for securing revenue, the national government protects the raising and collection of them with the safeguards of its severest penal laws, and the evasion of a tax duly imposed by the government incurs the penalty of heavy for- feitures, fines or imprisonment. The revenue laws of the United States exact the most scrupulous observance of its- provisions, not only as to the individual who would evade payment of his dues, but as to the officer whose duty it is to enforce it. The state laws should be equally peremptory in holding revenue officers to strict fidelity in their enforcement. Our Maine assessors are unquestionably as able and efficient as any and the fault is largely in the looseness of the tax law. Yet it has long been the custom of assessors to ignore the explicit requirement of the Constitution of the State above quoted. Property is assessed at much less than its just value in many towns. It is very common for assessors to value real estate at three-fourths, two-thirds and even one-half its true value. In the late returns of the assessors of all the towns of the State for the use of the State Valuation Commissioners it appears that the assessors of 132 towns based their taxes on less than "a just value" of the property assessed. Thirteen based them on four-fifths value, thirty-five on three-fourths value, fifty-three on two-thirds value, and sixteen on one- half, while in two towns the assessors considered their duty done when they assessed at one-third of the "cash value" of the property taxed. It has been our purpose to make the assessor the important and responsible officer that he should be under our system and yet to make him the executor and servant of the law, and not its superior. The proposed law, therefore, leaves but little discretion in his hands. It points the way and commands him to follow under severe penalties for neglect or misfeas- ance. It holds him rigidly to a just valuation with no discre- tion to construe that to mean a half value, and is equally explicit in forbidding any intentional under-valuation or over- REPORT OF TAX COMMISSION. .')'.! valuation in any case or for any purpose whatever. With all the assessors in the State doing their duties promptly, faith- fully and all alike under the general supervision of a board of State assessors held, by provisions of equal explicitne^s, to fidelity and vigilance, a nearer approach to equality and hence a lessening of the rate of taxation may be confidently looked for. As a measure towards making assessors independent of local circumstances, we recommend a change in the law pro- viding for their election and tenure of office in towns having more than two thousand inhabitants and submit herewith a bill which provides that in such towns the selectmen shall not be assessors and that assessors shall hold office for three years, one going out each year, if there are three, and one or two as their terms expire, if five are chosen. This method, it is believed, will insure experience as well as independence, to a greater degree than the present method of yearly rotation of the whole board and a mixture of the duties of selectmen and assessors in the same persons. POLL TAXES. Under our present statute, a poll tax of not exceeding three dollars is assessable upon every male inhabitant above the age of twenty-one years (with certain exemptions) for state, county and town purposes, and an equal sum may be assessed on each poll for highway expenses. This makes it possible for towns to assess six dollars, in all, as a poll tax. There is great variety in the poll tax laws of the several states. Some states have abolished the poll tax entirely. Some make its payment a prerequisite to the right to vote. MASSACHUSETTS imposes a poll tax of $1.00 on male citi- zens above twenty years of age and fifty cents on females of voting age svho ask to be taxed in order to exercise their limited right of suffrage. State and county taxes only assessed on polls. Xo town or highway poll taxes. 40 REPORT OF TAX COMMISSION. NEW HAMPSHIRE All male poles from twenty-one to seventy years of age, except paupers and insane persons, are taxed. The tax must be equal to the tax on $100 of valuation of property in the town where the poll is taxed. Disabled soldiers oi the late war may be exempted, in the discretion of the selectmen. VERMONT taxes two dollars on all polls of male inhabitants, citizens and aliens, with exemption of persons actually poor and soldiers who lost an arm, leg or eye-sight in the war. Members of the militia or of fire companies may be exempted if towns so vote. CONNECTICUT The poll tax is one dollar and no more for town and state purposes, and school districts may tax at the same rate as $100 value of property is taxed by the district. A great many exemptions of the poll tax are provided for ; students, members of fire companies, active members of militia companies, and soldiers who served three months in the late war, ministers, priests, paupers, idiots, lunatics and indigent, sick and infirm persons and persons above seventy years of age. Every able bodied person is required to work by himself or substitute at least one day on the highway, commutable at twelve and a half cents an hour. PENNSYLVANIA restricts its poll taxes to persons holding offices and posts of profit, professions, trades, occupations and single free men, above the age of twenty-one years who shall follow no trade, occupation or calling. It is unlimited for state and county purposes, and for school purposes not less than fifty cents. Section 1 of Art. 8 of the Constitution of Pennsylvania requires as a qualification to vote, that the citizen shall, if twenty-two years of age or upward, have paid a state or county tax assessed within two years, and paid at least one month before election. By joint resolution the legislature has this year submitted to the people a proposed amendment, doing away with this requirement of the Constitution. (Laws of 1889, p. 439.; REPORT OF TAX COMMISSION. 41 Q HI O The poll t;ix in this state is fixed in amount to two days-' labor on the highway and is conmuitable at $3.00. It is imposed on all males between twenty-one and fifty-five years of age. The exemptions are disabled soldiers pensioned by the United States and members of fire companies serving without pay. ILLINOIS has no poll tax law. KANSAS Municipal corporations having less than 15,000 inhabitants may impose a poll tax of not exceeding $1.00 on male inhabitants over twenty-one years of age. Active mem- bers of fire companies are exempt. CALIFORNIA Every male inhabitant between the ages of twenty-one and sixty must pay a poll tax of $2.00. The exempts are officers, musicians and privates of the national guard, while doing military service, and all who have served for seven consecutive years. A highway poll tax of two days' labor on roads, commutable at $4.00 or at such rate not exceeding that amount as the assessors may fix, is also provided. MINNESOTA The poll tax law is as follows: "It shall be lawful for the Common Council of cities of above 2,000 inhabi- tants, to levy at any time a corporation poll tax upon every qualified voter, not exceeding $2.00 a year." WISCONSIN Every male inhabitant between twenty-one and fifty years of age must pay a poll tax of $1.50 for high- way purposes. The exempts are disabled soldiprs of the late war, paupers, idiots, lunatics and members of the militia dur- ing service and after five years of service. Town boards may exempt the poor and infirm. No other poll tax. GEORGIA The state imposes a poll tax of $1.00 upon every person between the ages of tw T enty-one and sixty years. The blind and persons not owning $500 worth of property -are exempt. Municipalities are prohibited from assessing poll taxes. MARYLAND imposes no poll tax. 42 REPORT OF TAX COMMISSION. The foregoing are examples of the poll tax laws of states- representing the different sections of the country. It will be* noticed that none allows so large a poll tax as may he assessed in this State for state, county, town and highway purposes,, and that, unlike Maine, the amount of the tax in nearly every state is a fixed definite sum. With a view to ascertain the- judgment of experienced town officers, as to any desirable change in our poll tax law, we addressed inquiries to the assessors of all the cities and principal towns in the State,, asking suggestions. We received replies from 120 boards. In these towns and cities a little more than seven per cent of the poll taxes are lost and abated. But the loss is mainly ii> the cities. Only nine cities reported, and in these the loss- was from seven to fifty per cent, the average being twenty per cent. About half the towns assess a tax of $3.00 ami the rest from $1.00 to $2.50. The largest percentage of losses are in the towns assessing the highest tax. The opin- ions of the assessors are varied and it is pretty difficult to get a definite result from them taken together, but they pretty well represent the condition of the public mind upon the general subject of taxation. Following are some of the suggestions : Eight say, "The maximum tax should be $2.00." Thirteen say, "Make the tax uniform throughout the state.''' Nine say, "Make the payment of a poll tax a qualifications to vote." Six s.ay, "Exempt all over 70 years old." Five say, "Exempt all over 60 years old." Three say, "Exempt all over 50 years old." Some say, "The tax should not be over $1.00." Others, "Let five dollars be the maximum/' Others, "Three dollars is little enough." Others, "The law is all right as it is." We have decided to recommend a change, not so much to^ put the poll tax provision of the law in harmony with the opinions expressed in these returns as to make it more in* REPORT OF TAX COMMISSION. 43 keeping with the laws of our sister states, and have taken away the discretion of towns and fixed it at two dollars for general purposes and not exceeding two dollars for highway purposes, making the age limits twenty-one and seventy years ; other exemptions remaining as at present. TAXATION OF DOGS. As the system of taxation in nearly every state in this country includes provisions more or less elaborate for the taxation of dogs, and the disposal of the funds arising from such taxation, your Commissioners believed it to be their duty to examine the various methods adopted and recommend what- ever, in their judgment, would improve our law upon this subject. Whether the dog is to be considered a domestic animal, as so eloquently and powerfully maintained by Chief Justice Appleton, dissenting in the celebrated dog case re- corded in Vol. 75 Maine Reports, or to belong to the class of animals ferae naturae as the majority of the court there decided, all states have found it necessary, for the protec- tion of sheep at least, to enact special laws to that end. While it may be true, as Judge Appleton asserts in the language of Cuvier, that barbarous nations owe much of their civilization above the brute to the possession of a dog, it is still true that many a sheep raiser owes much of his yearly losses to his neighbor's possession of a dog. There are dogs and dogs. There always will be as broad a distinction in their natures as in their breeds, and the worst sheep killer among them may still be the ''friend and com- panion of his master" and, as presumed by the common law, a tame animal "in the home, under the roof and by the fire- side." The person who can afford the indulgence of such a friend and companion as a dog ought not to complain at any slight tax that may be imposed for the protection of property on which a tax is levied ;>gainst the possible, or rather the probable, ravages of the canine race. As it is impossible to draw the line between those dogs that may be trusted and 44 REPORT OF TAX COMMISSION. those that may not be, the tax must of necessity be general a sort of mutual insurance against the sudden relapse of any of their number into his savage state and committing damage. The numerous instances of such damage, the yearly slaughter of sheep by dogs, to the discouragement in many sections of sheep husbandry, would seem to demand a better regulation than we have as to the taxation of dogs and a method of appropriating the proceeds of the tax to making good, as far iis possible, such damages. The law, as it now is, effects but little. It is left discretionary with towns to impose the tax. In cities where the non-owners of dogs are more numerous than the owners of them, and where there are few sheep within reach of dogs, they are generally taxed, while in the farming towns they escape taxation, if the dog owners are more numerous or influential than the sheep owners. In the words of a farmer, "the dog ought not to be allowed to vote on this question." In fact, Maine is about the only State that leaves the matter open for the dog's influence. In the fol- lowing states the legislatures have fixed the tax and provided for the disposal of the money arising from it : REPORT OF TAX COMMISSION. TAX. How Appropriated. Male Dog. Female Dog. -ichusetts, Connecticut. . X. Hampshire. Vermont 82 00 1 15 1 00 81 if paid April 1 ; 82 if paid by May 15. C First dog 81 ; additional i dog, 82. 81.00 {25 cents first dog; sec- ond dog, $1 ; each addi- tional, 82. 81.00 Valu'd and tax'd like other 80 50 1 00 1 00 2 00 1 00 1 15 First dog 81 ; each additional. 81-50. 8 .50 C First dog 81 ; each addi- i tional. 81-50. $5 00 6 15 2 00 Same f 83.00. 1 Each <( addi- i tional I $5.00. $2.00 I Same $1.00 prop'ty SI 00 1 00 3 00 3 00 1 00 5 15 Same $1.00 > Same For damages to sheep by dogs. For dam'ges to domes- tic animals by dogs. For general purposes, }>For gen'l purposes. For general purposes. Jut one male dog for each house is exempt. f For dam'ges to sh'p \ by dogs. For general uses. For dam'ges to domes- tic animals. For damages to sheep by dogs. For damages to sheep by dogs. Goes into the school fund. Goes into the school fund. For damages to sheep by dogs. For damages to sheep by dogs, f Towns may tax 85 additional to the J tax provided by } law. Proceeds go to pay damages to t sheep by dogs. New York Maryland Pennsylvania, \evacla Ohio Illinois Michigan Wisconsin No. Carolina... Rhode Island.. Virginia West Virginia, New Jersey . . Indiana leaves it to the towns to vote to tax or not, but if they tax, the proceeds go to pay damages done to sheep by dogs. Georgia alldws a dog tax to be imposed by constitu- tional provision, but we do not find any law among their statutes taxing them. The average amount of the tax upon each dog in the eighteen states named is $1.90. We recom- 46 REPORT OF TAX COMMISSION. mend a license tax, certain and uniform, of $1.00 on male dogs over four months old and $2.00 on females over that age ; the proceeds to be applied, under suitable provisions to prevent fraudulent claims, to pay for damages done by dogs to sheep. TAXATION OF MORTGAGES. \Ye have given considerable study to the vexed subject of the taxation of mortgages. To tax or not to tax them is a many sided question and most difficult of satisfactory solu- tion. It involves the whole theory and practice of general property taxation. The injustice of taxing a mortgage is that it results in double taxation. If the real property mort- gaged is taxed and the debt secured by it is taxed also, under our system, the mortgagor is compelled, often, to pay a double tax because the lender of the money, the mortgagee, may and usually will make his contract to cover the tax he may be obliged to pay on the mortgage indebtedness, and the mortgaged property is taxable to the mortgagor. This liabil- ity to double taxation extends to many cases where no money passes and the mortgaged property is the only property involved. A has a piece of land worth $1,000 ; B has noth- ing, but wishing to buy A's land, A conveys it to him, and receives B's note for $1,000 secured by a mortgage of the land. Under our system, the land is taxable to B and the mortgage note to A, thus taxing $2,000 in value where but $1,000 exists. To give another similar illustration : A owns a farm worth $2,000. B has $500 in money. Both are taxed in the aggre- gate $2,500. That is all the property they possess. B buys A's farm and pays him the $500 in part payment and a promis- sory note, secured by mortgage of the farm, for $2,500. No new property has been created, yet our present system would tax B for the land he has purchased $3,000 and A foi the debt B owes him $2,500, making $5,500 of taxable property. Under such a system, the larger the amount of debts and KEPORT OF TAX COMMISSION. 47 ^mortgages, the richer the community. "To tax both prop- erty and credits, both lender and borrower, is plainly incor- rect in principle and inequitable in practice," says Amasa Walker, author of "Science of Wealth," and the foregoing illustrations of frequent instances show the truth of the criticism. On the other hand, if mortgages are not taxed, the money lender escapes taxation for the money he has loaned on mort- gages altogether. How to adjust the tax so that exact justice may be done to both borrower and lender and to prevent the falling of all the taxes upon the borrower is the problem challenging solution, and one which must remain without absolute settlement until law shall usurp the power to make contracts between borrower and lender,* or until all taxation shall be removed from intangible property and choses in action. It is not alone the relation of mortgagor and mort- gagee that produces the injustice of double taxation. It inheres in the whole s}>tem of taxing debts and securities -and property for which the possessor is indebted. It touches the interests of all who do business, is peculiar to no class, and is a grievance as old as taxation itself. In the earlier -days of our statehood, it was little felt, but in the multiform methods of doing business at the present day, it is oftener felt, and the evasions, subterfuges and frauds practiced to -avoid taxes upon credits and securities, are the chief cause of the effort everywhere made to find a better system. It is a most significant fact, and one which speaks forcibly of the impracticability of statutory relief from double taxation in case of mortgages that there has been so little accomplished in any state to remedy it. In many states, as in our own, *XOTB Pennsylvania, by an act passed at the last session of its legislature, has attempted to control the contracts between lenders and borrowers. Section 18 of "An Act to Provide Hovenue," enacts: "That from and after the passage of this act it shall be unlawful for any person or persons, co-partnership, unincorporated association, limited partnership, joint stock association or cor- poration whatsoeyer, in loaning money at interest to any person or persons, whether such loans be secured by bond and mortgage, or otherwise, to lequire the person or persons bor- rowing the same to pay the tax imposed thereon by the lirst section of this act ; and in all cases where such tax shall have been paid by the borrorer or borrowers, the same shall be deemed ;and considered usury, and be subject to the laws governing the same." 48 REPORT OF TAX COMMISSION. the tax payer is allowed to offset against debts due him an equal amount of his indebtedness, and in a few states he is allowed to offset his indebtedness against his valuation gen- erally. In Massachusetts and Maryland, the legislatures have undertaken to deal with the subject of mortgage taxation r and in the latter state mortgages are not taxed. In Massa- chusetts, the mortgagee is taxed as joint owner with the- mortgagor in the land mortgaged to the extent of his inter- est. This method was adopted under a statute enacted in 188 1. and has proved reasonably satisfactory in practice.* The mortgage is taxed to the mortgagee as real estate to the *XOTE. This method is very highly extolled by the special committee 011 taxation of the Boston Executive Business Association in a report to the association last October. The asso- ciation embodies the leading business associations of Boston, including the Chamber of Com- merce, Merchants' Association, Master Builders' Association, Fruit and Produce Exchange and many others. On the subject of mortgage taxation, the committee say : "In one thing to-day we are in advance of many states. Since 1883 real estate has been re- lieved from double taxation. It is regarded, as it should be, the property of the parties who have a deed of it, whether as mortgagee or having the fee; and the result is, as you all know, that the party who holds the equity, being the natural husband and care-taker of the property, by agreement with the mortgagee assumes the payment of taxes, and gets his money about the tax rate less. igth the merit of this reform gave it the victory, although it was nearly a seven years' id with what result to-day? We hardly know a person to whom it has not been a "At len| war! Am real gain, so universal and widespread its benefits. "Let us enumerate some of them : "First. Real estate, relieved from double taxation, has become one of the most popular and profitable of investments, and year bj* year increases in value. "Second. The rate of interest upon'mortgages has fallen to so reasonable a figure that no- body complains; even the well-to-do business man can hardly afford not to have a mortgage upon his home, for present methods of doing business require so much capital that it is rare that he cannot make it earn more than four or four and a half percent of a first-class mortgage, and the poor man, Avho used to be so victimized by the money lender, even on his small lower- class mortgage, need not pay over six per cent. " Third. Massachusetts mortgages have become the best possible investment for trust funds, and the scanty income of the widow and orphan from this source is not required to be divided with the town or city in taxes. Lastly, And this result please note. After the readjustment to the new order of things had taken place, there was no perceptible increase in the rate of taxation, and this reform, which puts millions into the pockets of the people, in the reduced rates of inten-sts upon mort- gages, and increased value of real estate, to all appearances costs the general tax-payer nothing." To this Mr. Thomas Hill, the able chairman of the assessors of Boston, replied in an address to the association last January. Among other things he said : "We all admit that the rate of interest on mortgages has fallen since the enactment of the law of 1881. Two years before that law went into effect the average rate of interest upon the mortgages of all parts of the State was six and twelve one-huudredths per cent. After seven years' operation the records show that the mortgages recorded in the first five mouths of 1889 were at an average rate of five and thirty one hundredth? per cent, a difference of eighty-two one hundredths per cent. With the average tax of the State, as determined by its tax' com- missioner, at one and forty-seven one hundredths per cent, clearly the borrower has not re- ceived tho whole advantage of the exemption, unless the rates of interest have been advancing during the last decade. That can hardly be, when within a week Boston has sold its three and one half per cents, liable to taxation, at a premium. We all know that interest has receded largely during the last eight years. All the concession that lenders of money upon mortgages have made to their borrowers they have been compelled to make by the laws of trade, not by those of the State. I am satisfied that were the laAvs that sustain the present exemption of mortgages repealed by the present Legislature, as mortgages fell due, the lenders would take the rate fixed by the money markets of the world, and pay their own taxes ; and if I hoy refused to do so, foreign capital would give borrowers all they required at that rate." REPORT OF TAX COMMISSION. 49 amount of the debt due him upon it, and the mortgagor is, to that extent, relieved from tax, as he is taxed only for so much of the value of the property mortgaged as is in excess of the debt ; thus making but one tax, in effect, upon the whole trans- action ; the note being free of tax. Thus the lender is taxed for the money loaned in the form of a tax on his interest in the mortgaged property and the borrower is relieved to that extent. It is easy to see how, under this system, property escapes taxation, in theory at least, for if the lender retained his money and the borrower his land, both would be subject to full taxation. But would the money be found for taxation? It is also apparent that the lender's facilities for shifting the- burden of the tax he is liable for to the shoulders of his, debtor by extra charges, still remains. On the whole, however, we conclude that the weight of the argument is in favor of some such method as Massachusetts has chosen, as compared with our own, and we have incor- porated into our proposed law provisions of a like character. We are unable to devise any method that promises better results. STREET RAILROADS. The total amount of State taxes assessed upon the street railroad companies last year was $1,109.22. The rate of taxation is so small as to be hardly worth the trouble of assessing and collecting. It would doubtless be a low esti- mate to set the total value of the roads yielding this amount of revenue to the State at $200,000. Indeed, one road alone, the Portland Horse Railroad, was assessed $1,029.60 of the whole amount of taxes on street railroads, leaving but $78.62 for three others. One road that cost about $20,000, whose stock is held at considerable in advance of par and which yields handsome dividends, pays a tax of $9.48. Another road is assessed less than $1.00. The rate of taxation of these roads is one-tenth of one per cent, of the gross receipts when they do not exceed $1,000 per 50 REPORT OF TAX COMMISSION. mile and one-tenth of one per cent, increase for each thousand or fractional part thereof additional. These roads are subject to local taxation for their buildings, lands and fixtures outside of their located right of way, which is but small, and to no other tax whatever. When it is considered that these street railroads are granted the valuable franchise of a right of way over the streets of villages and cities; with no land damages and rights of way to pay for, and often subjecting tax payers who have to pay to keep the streets in repair and safe for travel, to various annoyances, it would seem but just that they should be subject to local taxation ; that the towns and cities whose streets they use should, at least, receive a tax from them. Why should the $50,000 more or less, which is invested in a business which runs cars through the streets of town be practically exempt from taxation, while the property of the manufacturer, the merchant, the farmer, who is obliged to make use of so much of the streets as the railroads leave for his use, is fully taxed? It is urged by those who are interested in these enterprises that they are a public convenience and are as yet but tenta- tive and in some cases do not pay. This may be said of about every business operation that is undertaken. The right of taxation cannot be made to depend entirely upon the success of a business enterprise. The merchant, the livery stable keeper, the hack and coach proprietor, the farmer, in fact all other classes of business-men have to bear their share of the public burdens, or are taxable for their possessions, whether successful or otherwise. It has seemed to your Commissioners, therefore, that these corporations should not only be taxed more than they are now taxed, but that it should be a local tax, that the towns whose streets are yielded to their use, may receive such benefit or remuneration as a just tax on the value of the property of the corporation will give them. Our view is embodied in the law herewith presented. In cases where the street railroad extends into two or more towns, the act provides for a confer- REPORT OF TAX COMMISSION. 51 ence of the boards of assessors of the several towns whose roads are so used, to determine the value per mile of the entire road, track and, in c^se of electric roads, the poles and wires. So much of the value thus ascertained of the track, poles and wires as is located in each town, is taxed therein. The buildings, horses, cars and other property being taxable where located or usually kept on the first day of April. The corporation is relieved of all other taxation on its property, franchises and stock, excepting the small portion of the tax assessed on these roads towards the salaries and expenses of the railroad commissioners, and that the act provides shall be deducted from the local tax before payment to the town. PUBLIC STREETS AND PRIVATE CORPORATIONS. The subject of the use of the public streets by private cor- porations is becoming yearly of more importance in this country, by reason of the rapid increase of wires, poles and street railways. While the streets of Maine cities and vil- lages have not yet, to a very cumbrous extent, been taken for the use of corporations, laws cannot be too early enacted to secure to towns some returns for the valuable rights and privileges which are secured through every charter, or incor- poration under the general law, in the best public streets, for railways, telephones, telegraphs and electric companies. The city council of Boston has taken hold of the subject in that city. A committee has recently presented an able report containing much valuable data relating to the experience and practice of other cities in this and other countries in dealing with these corporations. We give herewith some extracts from this report as being applicable to Maine cities as well as to Boston, and because they contain valuable suggestions upon a subject which the legislature will be obliged before long to deal with. The committee say : In almost every one of these cities, outside of our own, the corporations are required to make some direct return to the city for the privileges the}* enjoy in the public streets. This 52 REPORT OF TAX COMMISSION. custom is so general that the claim that it would impose a. burden upon corporations so serious as to impair their useful- ness does not seem to have any force, and it is difficult to understand why such a result would be brought about in this city, or why the effect of such a system upon corporations- should be any different in Boston than other cities. "It will be observed, upon examining the communications, that the local telephone companies of Amsterdam pay to the city, annually, 21 J per cent, of their gross receipts, in St. Louis, five per cent, of gross receipts, and in Philadelphia, one dollar annually for each old pole and five dollars for each new pole, used for the support of wires. Street railway com- panies also pay large amounts for their locations. In Amster- dam they pay 5 per cent, of gross receipts annually ; in Baltimore, 9 per cent, of gross receipts, with an additional tax on each car ; in Newark, 2J per cent, of capital stock ; in Providence, a certain fixed sum ; in St. Louis, a percentage of gross receipts on a sliding scale, while in New York state all street railway franchises are now sold at auction for the highest offer above a certain fixed percentage of gross receipts. "While it seems to your committee most desirable that some return should be secured to the city from the corpora- tions who hold and exercise these valuable and exclusive rights in the public streets, they appreciate the difficulty of intro- ducing any system that will be applicable to all corporations alike, and will operate fairly in every case, without working an injustice to what are undoubtedly looked upon as vested rights. The method most generally adopted is to require the payment to the city of a percentage of the gross receipts. This method may work to advantage in many instances, but in the case of a street railway, telephone or electric light company, having its tracks or lines in different municipalities, it would be difficult to adjust the rate proportionately. In addition to this, it is not always possible to ascertain what a company's receipts actuallj r are. The special tax upon each car of a street railway company, such as is levied in Baltimore, might tend to deter the company from furnishing adequate and proper accommodations for the community, especially if the fee, as in Baltimore, is greater for a new car than for an old one. The system is also open to objection as not being applicable to all corporations. "As regards the auction system which has been adopted in New York, your committee are of the opinion that it would not operate satisfactorily in Boston under the present state of affairs, particularly in reference to granting street railway REPORT OF TAX COMMISSION. 53 locutions. If a street railway extension became necessary, and the proposed new location was offered at auction, a sys tern of competition would at once be introduced in opposition to the present system of monopoly, which has received the sanction of the Legislature. A further objection to the sys- tem appears to be that it would tend to prevent a judicious and necessary railroad extension, on account of the reluc- tance which a corporation would evince to risk its rights upon the uncertainty of a public auction, Your committee are, however, favorably impressed with the method adopted in the city of Philadelphia, whereby a special annual fee is paid to the city for each pole belonging to the telegraph and telephone companies. The principle which underlies this system requires each corporation to pay a fixed sum for their special use of the public streets, and this sum is precisely proportionate to the extent of such use. The chief advan- tage of this system arises from the fact that it can be applied with equal fairness to each and every corporation enjoying the privileges granted them by the city. Thus, a street rail- way company might be required to pay the city a fixed sum for each mile of track located in the streets ; telephone and other companies, operating lines of electric wires, to pay so much for each pole erected, and companies making use ot pipes and conduits underground, a fixed sum per mile of pipe, etc. As it appears that the city at present has not the authority to secure a return from corporations to whom privileges are granted for use of the streets, it will be necessary to apply to the Legislature for further power, and the committee accordingly recommend the passage of the following order : , That His Honor the Mayor OH hereby ivqm'sted to petition the General C'nrt. at it< next session, fr the passage or' an act authoriz- ing cities and towns to prescribe terms and conditions for the use of their streets hy privat^ corporations." EXEMPTIONS. But little change is recommended in relation to exemptions from taxation. Ordinarily exemptions benefit most those who tire best able to pay taxes, because they are usually the per- sons who possess to the fullest extent such property as is sub- ject to xemption. An exemption of household furniture to the value of $300 to a family instead of $200 as in the present law, is recommended, because it is to be presumed that if the 54 REPORT OF TAX COMMISSION. proposed system is adopted and inventories are returned on oath to the assessors, the wealthier householders will list con- siderable furniture value in excess of $300, whereas under the present system it is very rare that any household furniture is valued at all for taxation. This will be a direct relief to peo- ple in poor or moderate circumstances. It is very unusual also, under our present law, that books the family library- is taxed. Everybody will recognize the propriety of exempt- ing a moderate value in books, to a family, although our present law exempts none. All are taxable, yet the practice is not to tax them. If, however, a person possesses a valuable library, we see no reason why it should not be subject to taxation as well as his musical instruments or carriages. Large libraries and valuable books are usually owned by peo- ple able to pay taxes on them, while the small collection, such as may be found or should be in the average family, ought not to be taxed. It is, therefore, proposed to exempt family libraries to the value of $100. In many states, the exemptions of family libraries are from $100 to $500 in value. The act also exempts the beds, bedding and kitchen utensils requisite for each family. Mules, horses and neat cattle less than two years old are also exempt under the proposed act. The present law makes them taxable if over six months old. These extensions of exemptions, we believe to be proper and in the interest of the farmers and other laborers of mod- erate means. WHERE PERSONAL PROPERTY IS TAXABLE. A good deal of property escapes taxation by reason of the difficulty in understanding the present provision relating to the taxation of personal property employed in trade, in build- ing and the like. It is claimed that much timber, logs, wood, poles and the like, in transit from the forests, escapes taxa- tion because having no place of taxation definitely fixed by statute. The present law provides that when any owner of real estate notifies the assessors that any part of the wood, bark REPORT OF TAX COMMISSION. 55 and timber standing thereon has been sold by contract in writ- ing and exhibits to them proper evidence, they shall assess such wood, bark and timber to the purchaser. The proposed law makes such property, while in transit or lodged upon the banks of streams and lakes, taxable to the owner in the town of his residence, hence must be included in his return to the asses- sors, if it is not assessed under the provision alluded to. Such property stored and piled in towns other than where the owner resides is taxable in the town where found. This may not appear just in all cases, yet it makes clear what is now obscure and will at least make such property pay its share of taxes somewhere. STATE TAXATION. It is believed by many that it may be possible to assess upon corporations an amount sufficient for State expenses, and thus the necessity for a property tax for State purposes be avoided. If this were possible within the limit of just taxation of corporations, it would, to a considerable extent, relieve the general tax burden of the people. But there are other questions, besides that of a slight decrease of taxation, to be considered in this connection. Would it be a wise and salutary thing to sever the financial ligament which now closely unites the State government with the town, and in fact with every individual? Would it be beneficial to the people at large to have the power and influence of corporations so im- mensely extended as they would be in case the State were dependent alone on them for its revenues? It appears to us that such a policy would not be wise and that to resort to it would be to sacrifice an important principle, a paternal and unifying element of state government, at a very cheap price. There is little danger, however, that such a policy will be adopted in Maine for a long time, as it would not be possible, with any degree of justice, to levy all our State taxes upon corporations, especially if our s}'stem of dis- 56 REPORT OF TAX COMMISSION. tributions to towns for school and other purposes is to be continued. The average amount annually derived by the State from property taxes, from 1880 to 1890, inclusive, was $853,- 192.80. The assessments were as follows : 1880 5 mills per dollar, $1,124,261 27 1881 4J mills per dollar, 1,063,529 91 1882 4 " " 1,063,529 91 1883 4 " " 945,430 92 1884 4 " 945,430 92 1885 3f " " 886,399 l 1886 3f " " 886,399 8 1887 2| " 649,487 11 1888 2f " " 649,487 11 1889 2J " 649,487 11 1890 2i " 531,697 17 This shows a very gratifying and steady reduction in the amount of property taxes for which the State annually calls on the people, and we are very confident that the levy will be further largely reduced if the legislature shall adopt the measures for additional sources of revenue herewith proposed. If, however, it shall be found that in the increase of revenues to the State and the decreasing demands of the treasury, the need of a property tax shall be reduced materially from the present rate of two and a quarter mills on the dollar, we trust the legislature in its wisdom will seek to reduce general taxation rather through the distribution system than by mak- ing the State independent of the towns and dependent wholly, or nearly so, on the corporations. On this subject Chief Justice Marshall said: "The only security against the abuse of the taxing power is in the struc- ture of the government itself. In imposing the tax the legis- lature acts upon its constituents. This is, in general, a sufficient security against erroneous and oppressive taxation. The people of a state, therefore, give to their government the right of taxing themselves and their property : and as REPORT OF TAX COMMISSION. 57 the exigencies of government cannot be limited, they pre- scribe no limit to the exercise of this right, resting confi- dently on the influence of the legislature, and on the influence of the constituents over the representatives to guard them against abuse." Again he said: "The interest, wis- dom, justice of the representative body and its relation with its constituents, furnish the only security against unjust and excessive taxation, as well as against unwise legislation gen- erally." But how would it be in case all the expenditures of the State, for which the legislature is called upon to provide, is derived from corporations, and none from a general levy upon the property of the people at large? Would not that '"only security" against unjut-t taxation and the abuse of the taxing power, which the eminent jurist said depends on the relations of the legislative body with its constituents, be, in ^a great measure, wanting? If it were not for the system of distribution, which is so beneficial to a large number of towns, and the reliance of the school system in many sections, the State might readily, if it were desirable, soon obtain sufficient revenue for its uses without taxing real estate, and even without new sources. The taxes levied by the State on property this year is $531,697.17. The amount returned to towns will be, approximately, under the various laws requiring distribution, $400,000, leaving less than $140,000 for purely State uses. It should not be forgotten, when the question of State taxa- tion is considered, that more than half the amount levied by the State on property flows back again for the direct benefit of the people. The new direct sources of state revenues under the pro- posed law are: The taxation of collateral inheritances; increase in railroad taxes by removing the three-and-a-quarter per cent, limit ; the taxation of sleeping car companies ; the taxation of telephonic instruments leased or royalty-paying ; the taxation of insurance and guaranty companies on gross instead of net premiums ; taxation of foreign and unlicensed insurance companies : taxation of accumulations of savings 58 REPORT OF TAX COMMISSION. banks; taxation of trust and loan associations; taxation of corporate franchises ; tax on enrollment and organizations of corporations, and taxes on private and special acts of legisla- tion. The sums which may be reasonably expected from these sources, under a system administered by an efficient board of state assessors, in addition to the amount to be derived from present sources, will, we believe, be quite large. But it is from the increase of taxable property which will be brought to light by the system proposed, that we most confidently expect relief will be found for the general tax payer; in the new and imperative provisions which are intended to unmask the property of the dishonest, defeat the cunning of the evader, lessen the burden of the upright citizen and stimulate the fidelity of tax officers. The average rate of taxation for all purposes throughout the State for 1889 was one and seventy-one hundredths per cent, on a valuation which in many towns was much below a "just value." We believe that, under the system proposed,, the annual levy need not exceed an average of one per cent. COLLATERAL INHERITANCES. We have embraced in the system which we recommend at tax on collateral inheritances or property which goes by bequest or succession, or by deed or gift, to take effect after the death of the grantor, to persons not lineally related to the decedent. This tax is imposed in several states of this country and has long been a familiar source of revenue in several European countries. It has been strongly urged upon, us by many leading citizens of the State, and we have made a careful examination of the laws imposing such taxes in the several states adopting them, their practical operation and the decisions of the courts touching their constitutionality. We have not thought it advisable to include direct inheritances although that, with a considerable exemption allowance, is strongly recommended by many. A tax upon collateral inheritances lays no burden upon common and natural sue- REPORT OF TAX COMMISSION. ct'<>ions, such as from parent to child, or from child to parent. It reaches such property as through the permission and pro- tection of the government, only, goes into the possession of persons or corporations who have had no hand in earning it. It is so given by statute and not by right, and it would seem, as remarked by the able special tax commission of Con- necticut, which included several professors of Yale Law School, in their report to the legislature of that state in 1887, that "the gift made by law may be properly taxed by law." It is an income without labor on the part of the receiver, property transferred by the assistance and protection of gov- ernment from the dead to the living who has no proprietary rights in it. A tax of this kind is easily collectable which may also be urged as a reason for it. Questions of the con- stitutionality of special inheritance tax laws have arisen in every state where such laws have been enacted, but they have been sustained in every case excepting in New Hampshire, where a law taxing all estates, settled in probate courts of the state, one per cent, on their value and excepting only property passing by will or by law to the "husband or wife, children or grandchildren" of the deceased, was declared to be repug- nant to that provision in the New Hampshire Bill of Rights which limits the taxing power of the state to "proportional and reasonable assessments, rates and taxes upon all the inhabitants and residents within the state and upon the estates within the same." In the reasoning of the court in this decision, it seems to be conceded that if the uniformity of taxation required by the Constitution applied to property only, and not to inhabitants, the law would not have been unconstitu- tional, for in referring to decisions of the Court of Appeals of Maryland and of Virginia, where similar questions were raised and overruled, the New Hampshire Court say : "There is in that state (Virginia) no constitutional prohibition against taxing a civil right or privilege, or forbidding a discrimina- tion between lineal and collateral inheritances, because the requirement of uniformity applies to property only," and that, <60 REPORT OF TAX COMMISSION. while the Maryland Constitution provided "for a uniform mode of taxation on property, it was not the purpose of the framers of the Constitution to prohibit any other species of taxation, hut to leave to the legislature the power to impose such other taxes as the necessities of the government might require." In Virginia, the law was sustained as not imposing a tax strictly upon property, but upon a civil right or privi- lege. As our state constitutional provision granting the power of taxation, applies only to property and is more nearly in accord with the provisions in the constitutions of Virginia and Maryland, than it is with that of the New Hamp- shire Constitution, which requires taxes to be apportioned equally among the inhabitants as well, we do not apprehend that a collateral inheritance tax being of the nature of a tax upon "a civil right or privilege," will be held to be objec- tionable on the ground of unconstitutionality. The question .has been recently considered by the Xew York Court of Appeals iu the matter of McPherson, N. Y. Reports, 306, where tl e court upheld the constitutionality of a law impos- ing "taxes upon gifts, legacies and collateral inheritances in certain cases." The court there say; "It has been held in several states where constitutional provisions required that property taxes should be equal and uniform, that such pro- visions had reference only to general, annually recurring taxes upon property generally, and not to special taxes upon privileges or special or limited kinds of property." The Connecticut legislature, at its last session, passed a law taxing collateral inheritances, similar to the one embodied in the act herewith submitted, after two years of reflection iipon the report of the 1a\ commission which recommended it. As to the propriety of such a tax, the Hon. Albert W. Paine, in his report as Tax Commissioner, made to our legis- lature, session of 1874, said : "Where property is so situ- ated as to pass to a new owner, who has had no agency in its earning, it would seem to be only just and reasonable that a small duty be paid to the state whose laws afford the passage." We believe such will be the general opinion of the people. REPORT OF TAX COMMISSION. 61 The Comptroller of the state of New York in his last report to the legislature of that state, speaks of the inheritance tax law, which was passed there in 1885, as "a wise and just measure" and observes: "Under the law the immediate members of a person's family and those most equitably entitled to share in the property of a decedent are exempted from the tax prescribed ; and only those gifts or shares of a decedent's property of the value of $500, or upwards, re- ceived by collateral relatives, who ordinarily have no equitable claim upon the bounty of the testator or intestate, are liable to the tax of five per cent. Such beneficiaries can well afford to pay a small tribute to the state, for if it were not for the wise and humane laws that the state has devised for their benefit and protection, they might not be entitled to receive the gifts upon which the small tax is imposed. Small estates pay very little or no tax. It is the large and wealthy estates that pay considerable amounts into the treasury for the bene- fit of the whole people." A similar law ha< been upheld in North Carolina whose Constitution requires that all property shall be uniformly taxed and which limits the rate of state tax to two-thirds of one per cent. In the case of Fallen vs. The Commissioners of Wake County, (66 N. C. Reports, 361), the Court say r "Undoubtedly, if the tax in question must necessarily be regarded as a tax on property, the objection would be irre- sistible, since this property is not only taxed uniformly with other property, but is subjected to taxation as a legacy in addition. But we do not regard the tax in question as a tax on property, but rather as a tax imposed on the succession, on the right of the legatee to take under the will or of a col- lateral distribution in case of the intestacy. Neither can it be held to be a tax on property merely because the amount of the tax is measured by the value of the prop- erty. The legislature may destroy the right of gift by will altogether may it not regulate it and impose conditions on- its exercise?" 62 REPORT OF TAX COMMISSION. Judge (Jooley says, (On Taxation, p. 392), succession to an inheritance may he taxed as a privilege, notwithstanding the property of the estate is taxed and taxes are required by the constitution of the state to he uniform. See also Hilliard on Law of Taxation, Ch. V., 2. Such a tax was strongly urged upon the legislature by Governor Plaisted in his address at the beginning of the ses- sion of 1881, in these words: "As Jill property should hear its just and equal proportion of taxation, it would seem but reasonable that all legacies and inheritances should not go untaxed. The propriety of an inheritance tax distinguishing between lineal and collateral inheritance, is approved by the soundest political encono- mists ; nor can there be any doubt of the legal and moral right of the legislature to impose it The conditions that make such a tax just and desirable, are that a large amount of personal property that passes by bequest particularly government bonds will escape taxation altogether, unless taxed when it comes to the light in its transfer from the dead to the living. Besides, it would seem but just and proper that this class of property should be made to contribute to the cost of maintaining courts of probate and of probate rec- ords, established and maintained for the sole benefit thereof. Then, again, the expenses attending the collection of this tax would be but trifling, and the burden of the tax would fall lightly upon those who pay it, because it would be deducted from what was never in their possession. The state of Penn- sylvania derives an annual income of over $300,000 from col- lateral inheritances and bequests, and in addition thereto a revenue of over $100,000 from a tax on wills, writs, deeds, etc." The Maryland law taxes collateral inheritances, in excess of $500, two and a half per cent, which yields to the state about $45,000 a year. The amount of this tax in 1887 was $45,594. In a recent report of a Special Committee on taxation of the Boston Executive Business Association, the Committee thus forcibly recommend a tax of this kind : One of the things, then, upon which your committee is agreed is to recommend a state tax, known in other states as the "Collateral Inheritance Tax." Its name tells the story. REPORT OF TAX COMMISSION. 1)3 It does not reach the direct heirs, such as wife, children, parents, or even brothers and sisters, only collateral benefici- aries, persons and objects, who have no claim upon the estate, and get what they receive from the generosity of the donor, and the favoring circumstances of our law. What could be more reasonable than such tax in the final distribution of estates? Who should complain? Not the giver, for, if dl .agreeable to him, he may make his gifts during his lifetime. Not the receiver, for all should be to him an occasion of thankfulness. Would any of us object to such a tax for our- selves or for any charity with which we are identified? It is idle to reply that such a tax will be evaded by the testator. The fact* in otlter nWte* do not xhoiv it, and it would seem as if any reasonable man would, in disposing of any considerable porlion of his estate to outside parties and interest, feel that 41 five pi r cent, tax thereon, paid to the state for public uses, might, indeed, be a very becoming and satisfactory way of meeting any particular default in taxation, or other source of obligation to the community and its laws. This tax realized to the state of Pennsylvania Collateral inheritance In 1888 over $700,000 In New York in 1887 551,71ft In New York in 1888 73K,000 Estimated in 1889 .1,000,000 While Maine bears no comparison with these large and wealthy states, yet we think a considerable revenue may be realized here from such a law if properly enforced. A very careful estimate made by the Connecticut Tax Commissioners of the probable annual income from the collateral inheritance tax law of three per cent., recommended for that state, based on inheritable property valued at $810,000,000, and an aggre- gate of collateral successions amounting to $1,780,516 was $54,415. If Maine possesses half as much, with a tax of two and a half per cent., there ought to be realized at least $20,000. 64 REPORT OF TAX COMMISSION. CORPORATE FRANCHISE AND ORGANIZATION TAXES. There is no state, we believe, whose laws afford greater facilities for the organization of corporations, than do ours. By general law, in this State, three or more persons may form a corporation to carry on any lawful business with capital stock to the amount of two million dollars excepting only banking, insurance, deposit, telegraph and telephone com- panies. No scheme is so visionary, provided its purpose is ostensibly "lawful business," that it may not become vested, by virtue of our laws, with organized powers and, in a sense, supported and indorsed thereby. It is only necessary to organize, fix the amount of capital stock which the company may sell, record the certificate of organization and receive the approval of the attorney general. No money is required to be paid in. The shares of stock constitute the basis of business and the merchandise in which the corporation is to deal. The state has, therefore, become the favorite organizing ground of corporations by speculators from other states, and it is not uncommon that at least a dozen of them, represent- ing millions of stock in the aggregate, are born in a day. For the year ended December 31, 1889, three hundred and seventy-five corporations, aggregating more than one hun- dred and thirty-one million dollars of authorized capital, were organized under the general law in this State. The present year has been still more prolific of corporations, as, up to the first day of July last, two hundred and thirty cor- porations had been formed for "lawful business" since the first of the preceding January, with capital stock aggregating more than eighty-three million dollars! the month of June alone producing corporations with capital amounting to $20,608,000 ! The total number now in existence it is impossible to ascertain with accuracy, as the demise of many is unheralded and unrecorded ; but more than 4,000 stand upon the records of the Secretary of State, as still possess- ing power for good or evil. REPORT OF TAX COMMISSION. 65 While our laws afford such unusual facilities for the incep- tion of such corporation, they are singularly deficient in provisions tor deriving any adequate revenue from them. Corporations formed for manufacturing and mining, for bank- ing, for transportation, telegraph and telephone business, in fact all legitimate corporations which engage in business resulting in public welfare and owning property are subject to taxation. Such corporations generally consist of citizens of the state, but often of citizens of other states who seek investments here. The corporations which are not taxed are the hundreds formed for purely speculative purposes and may or may not have a legitimate basis of operation, or a place of business in this state other than nominal. Other states derive large revenues from such corporations, annually, besides a large amount from organization or enrolment fees. In New Hampshire a tax of $1.00 on each $1,000 of capital is imposed for bank charters, and $25 for each supplemental act. Sav- ings banks, railroad and insurance charters pay 50 cents on each $1,000 of capital and all other corporations have to pay $50 each for charters. In Rhode Island the tax is $100 for charter and one-tenth of one per cent, of capital in excess of $100,000. In New York, all corporations, excepting a few which are otherwise taxed, are assessed one and a half mills on a dollar of entire capital annually, and if they pay divi- dends in excess of six per cent, they must pay one-fourth of one mill on every dollar of capital stock for each one per cent, of dividend in excess of six. This tax is for state pur- poses and in addition to local taxes. In Pennsylvania from $400 to $1,000 is levied on corporations by the state for charters, according to the amount of their capital stock. If the charter is to run more than twenty years the tax is doubled. Corporations are also taxed three mills on a dollar of value of capital stock. In New Jersey, an annual tax of one-tenth of one per cent, of the entire capital of corporations at par is required, and the result is enormous. Last year the state realized from 1,380 corporations $266,355.16 through this 66 REPORT OF TAX COMMISSION. one mill tax on capital, and in addition to the $1,405,613 received from railroad and other business corporations. It is unnecessary to cite the laws of the several states upon this subject. The above are enough to show precedents for tax- ing the capital stock at par of corporations and for charters or organizations. That this is a constitutional mode of taxation is fully decided in the recent case of Home Insurance Company vs. New York, 134 U. S., 594. It is a tax on the corporate franchise, the right or privilege given to persons, by the state, of being a corporation. "This right or privilege to be a corporation," say the court in the above named case, "is one generally deemed of value to the corporators, or it would not be Bought in such numbers as at present. It is ?i right or privilege by which several individuals may unite themselves under a common name and act as a single person, with a succession of members without dissolution or suspen- sion of business, and with a limited individual liability. * * It (the state) may require, as a condition of the grant of the franchise, and also of its continued exercise, that the corpo- ration pay a specific sum to the state each year or month, or a specific portion of its gross receipts, or of the profits of its business, or a sum to be ascertained in any convenient mode it may prescribe. * * * No constitutional objection lies in the way of a legislative body prescribing any mode of measurement to determine the amount it will exact for the privilege it bestows." In California vs. Pacific Railroad Company 127 U. S. 1, the court say: "The taxation of a corporate franchise * * * may be arbitrarily laid with- out any valuation put upon the franchises." We have included in our bill provisions to cover both forms of taxation and with the confident belief that if the law does not result in a material increase of revenue to the State, it will at least have the effect to reduce the number of mush- room and noxious ventures which our general corporation laws encourage. REPORT OF TAX COMMISSION. 67 TAX ON PRIVATE AND SPECIAL ACTS OF LEGISLATURE. Many states impose taxes or fees for private and special acts of legislation. There is much propriety in this. While it is a part of the duty of the legislature to enact certain laws for the benefit of private parties, yet its principal function is to enact general laws lor the people. It has come to pass, however, in the multiplying conditions of business and the peculiar circumstances of communities that a very large por- tion of the time of the legislature is spent in investigating the propriety of special legislation or in the passage, or attempted passage of private bills. This consumption of time in special legislation narrows the time that can be devoted to the public business and causes much expense to the State for printing and in various other ways. It is very proper, therefore, that parties who are to be benefited by such legislation at the expense of the public, should contribute something to the State revenues. The proposed bill imposes a tax of fifty dollars upon such special acts of legislation as are apt to consume most time and which often confer valuable franchises, and upon other private acts the sum of ten dollars. ELECTRIC LIGHT, GAS AND WATER COMPANIES. We have not included electric light and power, gas and water companies in the act herewith as subjects of special taxation. The bonds and stock which represents the value of such plants are taxable and, with such information as we have been able to get, we have not thought it necessary that further taxes should be required of them. There may, however, be cases where such companies are yielding large dividends, where the bonds i^ucd by them, if any, are beyond the reach of the assessors, and uliore the stock does not represent the value of the plant. Sucu a con- dition might make a tax on gross receipts, as in case of ex- press companies, or a tax on the property of the company, 68 KEPORT OF TAX COMMISSION. as in case of telegraph and telephone companies, advisable. We leave it, however, for further investigation by the legis- lature to make such provision as may hereafter be expedient. TAXATION OF INSURANCE COMPANIES. Here again Maine is behind her sister states. Our present law exacts taxes only on the net receipts of foreign insurance companies, and, until 1885 did not tax domestic life insur- ance companies at all on premiums ; and since that date only on net receipts. Of the forty states, including Dakota, whose laws we have examined, only seven tax the net instead of gross receipts, but in every such instance the tax applies to all classes of insurance and domestic as well as foreign, while in Maine the tax until 1885 was upon foreign insurance only. In several states an annual license fee is charged in lieu of all taxation against foreign companies doing business in those states, of from $100 as in Nevada to $1,000 as in Virginia. In fifteen states a tax is levied upon gross receipts, and, in most ol them, in addition to annual license fees. A table in the appendix gives other details relating to insurance taxes throughout the country. We have made the taxes uniform in the bill submitted, two per cent, on the gross receipts, allowing deductions for re- turned, unearned, premiums only, and have retained the pro- vision authorizing retaliatory taxation. The present law taxes the surplus funds of domestic life insurance companies one-half of one per cent. We have made the tax in our bill three-fourths of one per cent, the same as in case of savings banks, and believe that will not be thought an unreasonable tax for such protection as our laws and government afford to property. Th^re is a class of insurance companies whose situs is be- yond this State, but doing a large and increasing business in this State without any license or lawful authority whatever and paying no taxes or fees to the State. We have under- taken to incorporate provisions in our bill to prevent this- REPORT OF TAX COMMISSION. 69 injustice to companies which pay for a license to do a legiti- mate business here and pay taxes on that business. These companies are known as mills mutual or factory companies and, according to the last annual report of the Insurance Commissioner, the risks written by the nineteen companies of this kind, all located out of the State, amounted in 1889 to $539, 964, 635, on which the premiums were $4,937,741. The losses incurred were $1,368,224 and the return dividends, $3,150,890, leaving for expenses, $418,627. The Commis- sioner says : "It is evident that the business is a profitable one, and there is no good reason why it should not bear its just pro- portion of the burden of taxation. Licensed companies pay tees and taxes and are obliged to come into competition with these companies that pay neither. Other mutual companies pursuing like methods write upon protected property other than factories and the business all escapes taxation." In Pennsylvania, recently, a bill passed the legislature granting to persons, companies and corporations permission to insure in these factory mutual companies. Governor Beaver vetoed the bill as being repugnant to that clause of the state Constitution which forbids the granting of exclusive privi- leges, all other insurance companies being subject to taxation by the state. The Supreme Court of the state has sustained the veto and declared the law permitting such insurance un- constitutional. We have no law permitting such insurance by our citizens in towns, yet much business is done by citi- zens of this state with these companies which have no agents nor office in this state, but operate through "inspectors." They thus keep beyond the reach of our law taxing insurance companies, claiming that the insurance is all effected at the home office. "The method of reaching this business in Maine, inasmuch as it is written at the home office, is the problem necessary to be solved," says the Insurance Commissioner, with whose REPORT OF TAX COMMISSION. MICHIGAN Railroads, on or before the first clay of Ju\y in oach year, pay to the State Treasurer, on the statement of the Auditor General, an annual tax upon the gross receipts of the company, computed in the following manner, viz., upon all gross receipts not exceeding four thousand dollars in amount per mile of road actually and regularly operated for the conveyance of passengers and freight, two per cent. of such gross earnings ; upon such gross receipts in excess of four thousand dollars per mile so operated, three per cent, thereof; which amount or tax shall be in lieu of all other taxes upon the property of such companies, except such real estate as is owned and can be conveyed by such corporation under the laws of the state, and not actually occupied in the exercise of its franchises, and not necessary or in use in the proper operation of its road ; but such real estate so excepted is liable to. taxation in the same manner, and subject to the same conditions as to assessment for taxation, as is other real estate in the several townships within which the same may be situated. MINNESOTA Every railroad has the option of paying tax on gross earnings (to be in lieu of all other taxation) as fol- lows : For the first three years, one per cent. ; for next seven years, two per cent., and thereafter three per cent, of gross earnings. This is a state tax, and is a substitute for all other taxation, even including land granted to aid in construction. KENTUCKY The same rate of taxation for state purposes, which is levied on other real estate, is levied upon the value of the railrojbd, rolling stock and real estate of each com- pany ; and the same rate of taxation for the purposes of each city, town, county or tax-district, in which any portion of any railroad is located, which is levied on other real estate therein, is levied on the value of the real estate of railroads therein. NEW JERSEY State board of assessors value railroad prop- erty in the state, including road-bed, tracks, buildings, etc., .and all tangible personal property, franchises, rolling stock, REPORT OF TAX COMMISSION. 77 etc., deducting from the aggregate, mortgage debts (taxed to creditors). On this valuation a state tax of one-half ot one per cent, is assessed, and the 'railroad is also subject to a local tax on all real estate, buildings and track not included in "Main Stem," assessed by the state board and distributed to the several towns where located, pro rata, not exceeding one per cent. MARYLAND The real and personal property of all railroads worked by steam, including bridges and tunnels in the value of the road-bed, but not at a higher rate than other portions of road-bed, is taxable in the several counties through which such railroads run, like other property therein situate for local purposes. Said railroads are also required to pay the state a tax of one-half of one per cent, of gross receipts, within the state, to be in lieu of all other state taxation. SAVINGS BANKS. Very early in our investigation into the causes of com- plaint, we were strongly urged to recommend an increase of the tax upon savings banks. It was claimed by those who represented the interests of farmers that these banks were absorbing the money of the State, thus placing it beyond taxa- tion, except the three- fourths of one per cent, for State pur- poses, and that it was their policy to discriminate against real estate security for loans, hence that they were of little or no practical benefit to the borrowers for purposes of accommo- dation. It was also charged that these banks were investing largely in the national bank and other taxable stocks of the State, and thus removing them from the reach of the assessor, as it is claimed by the managers of the savings banks that stocks purchased and held by them are not subject to local taxation. It is the policy of all the states, in which there are savings institutions to deal liberally with them in the matter of taxation. They are everywhere acknowledged to be of 78 REPORT OF TAX COMMISSION. tate, to the tax laws and to the town in which their property is located. In many cases of defective sales of land for taxes, it will be found that trouble arose from a defective description of the property taxed, in the original list. The list is the foun- dation of all subsequent proceedings. Each document in the process to enforce payment, wherein the land is designated, depend on the accuracy of its description. A defective description in the list runs through the warrant to collect, the notices, returns, records, certificates and deeds. These latter may be corrected or cured b\ amendment, but that will not cure the original difficulty. Unless the list descrip- tion is correct, the officer has but a blind guide in advertising and selling the land. It is absolutely essential that the description in the list however much of labor it may entail upon the assessor, should be accurate enough to designate the land and notify its owner, beyond question, that it is assessed or in jeopardy of sale. The description is required to be of greater nicety even than in a deed of conveyance between man and man. There the owner is a party to the sale. The ambiguity in the description may be explained. But not so in tax tales. There the owner has nothing to do. The gov- ernment is acting through its officers and in hostility to him. Xothing can be supplied by intendment. In consolidating the provisions of the two methods, we have endeavored to preserve as much as possible of the essen- tial details of the proceedings with which collectors may be supposed to be familiar, but have tried to include in one direct and consistent, course all the details for notices, adver- tisenn i.is. sales, returns and records. The bill also provides a ivmedy by lien and its enforcement by suit. It was not a 86 REPORT OF TAX COMMISSION. task without difficulty, and we do not expect that the result will be found in practice free from defects, but feel confident that it will, at least, be found no more defective than the present law. REPEALING ACT. We have thought it advisable to report a draft of a repeal- ing act for the convenience of the legislature in case our principal bill should be adopted in the form reported. The repealing act includes all the acts which we have consolidated in the principal bill, passed since the last revision of the statutes. In every instance but one the provisions of the acts passed since the revision, and included in the repealing act, have been adopted as passed. The exception is chapter seventy-two of the Public Laws of 1887, which so amends the law taxing express corporations, companies and persons as to exempt from taxation an express business carried on by individuals not incorporated. As we are unable to see a sufficient reason for such exemption we have not incorporated it in the principal bill. The propriety of the passage of this repealing act or any portion of it will of course depend upon the action of the legislature touching the principal bill, but we have collated the various acts additional and amendatory of chapter six in that form as a matter of convenience if any repeal shall become necessary. CONCLUSION. The result of our labors is not, properly speaking, the recommendation of a new system ot taxation. A new system could hardly be framed without a change in the Constitution. But many of the proposed provisions are new to our law and radical. We have acted on the belief that the people demand something more than a little tinkering of the Inw here and there by acts amendatory and additional. That course has been pursued until our tax laws are a patchwork of provisions often confused and singularly inefficient as revenue laws. We REPORT OF TAX COMMISSION. 87 believe that the legislature declared by the resolve under which this Commission was appointed, that the time has arrived when Maine should put itself in line with other pro- gressive states in her methods of taxation. With this view we have worked. Such changes as the times and circum- stances demand cannot well be made by more patching of the laws. In order to make the changes we conceive to be de- manded and believe to be necessary, an entirely new draft of chapter six of the Revised Statutes was required, as several of the new provisions effect a large part of the chapter. We have tried to make the law more systematic and direct, com- bining in a more united scheme state and local taxation. While the towns are left independent as heretofore, the plan for listing and state supervision which we propose makes their interest and that of the State and county identical, in revenue matters, and erects a substantial barrier against undervalua- tions by town assessors to cheat the revenues of the State and shift the burdens to towns whose assessors are more consci- entious in following the obligations of their oaths of office and the explicit requirements of the Constitution. The board of state assessors the head of the system by a general over- sight, and by visiting all sections, by frequent state valuations, is calculated to give a coherence, equality and unity to the tax system which have heretofore been wholly wanting. It is only after a great deal of discussion that we have ven- tured to recommend some of the more important changes, and we do not expect them to be adopted by the legislature with- out much consideration. We fear, also that there may be found in the proposed bill, defects of construction and arrangement and quite probably, inconsistencies which the experienced ej'es of legal gentle- men in the legislature may discover, or which may be left for practical tests or judicial examination to disclose ; it would be phenomenal indeed if many faults should not be found in these respects. We ask that it may be charitably considered that the time in which we have been obliged to complete the comprehensive task committed to us has not been a long one 88 REPORT OF TAX COMMISSION. when it is remembered that your Commissioners were much of the time necessarily engrossed by the demands of private business. We feel very confident, however, that our propo- sitions will grow in favor the more they are discussed and the reasons therefor are studied, and that whether they shall be approved by the legislature or not, our labors will prove of substantial value. Our aim has been to propose a law which, before everything else, will equalize the burden of taxes, and thus lessen the rate everywhere ; decreasing the assessment of the just and conscientious citizen by increasing to its proper limit that of the tax dodger. That we have hit upon perfect measures to that end we do not claim, for dupli- city and cunning defy the most rigorous statutes ; but we have hope that our labors, if approved and the result embodied in the will of the people, will give them substantial relief. In such faith we respectfully submit our work, through the hands of your Excellency, to the Honorable Legislature. OLIVER G. HALL, SAMUEL J. ANDERSON, JOHN L. CUTLER. AX ACT TO PROVIDE FOR THE RAISING OF REVENUE BY TAXATION. Poll Taxes. SI-XT. 1. A poll tax of two dollars and no more for Poll tax. town, county and state purposes, except highway taxes separately assessed, shall be assessed upon every male person between the ages of twenty-one and seventy ^ liniit years, whether a citizen of the United States or an alien, in the place where he is an inhabitant on the first where taxed, day of each April, unless exempted therefrom by this chapter. No person shall be considered an inhabitant of a place on account of residing there as a student in a literary institution. Not exceeding two dollars in Highway poll one year may also be assessed on each taxable poll for highway taxes when separately assessed ; and the residue of such taxes shall be assessed on property ace rding to its value. Property Taxes SECT. '2. All real property within the state, all per- Real and per- J sonal estate soual property of inhabitants of the state, and all per- taxable, soiial property hereinafter specified of persons not inhabitants of the state, is subject to taxation as here- inafter provided SECT 3. Real property, for the purposes of taxa- Real estate, ,. . , / . ,. . . , , what it includes. tion, except as provided in section six, includes all lauds in the state and all buildings erected on or affixed to the same, and all townships and tracts of laud, the fee of which has passed from the state since the year eighteen hundred and fifty, and all interest in timber upon public lands derived by permits granted by the 90 REPORT OF TAX COMMISSION. land and inter- est in timber, taxable. R. R. buildings, &c. , subject to municipal tax, as non-resident land. Commonwealth of Massachusetts ; interest and improve- ments in land, the fee of which is in the state ; and interest by contract or otherwise in land exempt from taxation. SECT. 4. The buildings of every railroad corpora- tion or association, whether within or without the located right of way, and its lands and fixtures outside of its located right of way, are subject to taxation by the cities and towns in which the same are situated, as other property is taxed therein, and shall be regarded as non-resident land. Street railroad If situated in more than one town, how assessed. Subject to no other taxes. Street Railroads. SECT. 5. The property of every street railroad cor- poration or association is subject to taxation by the cities and towns in which the same are situated. The track, buildings, cars, horses and, if the cars are pro- pelled by electricity, the poles, wires, insulators, dyna- mos, engines, boilers and machinery owned or used by such corporation or association for the purposes of such railroad shall be valued and assessed like other prop- erty in such town. If, however, the track of a horse railroad or the track, wires and poles of an electric railroad are situated in two or more towns, the value per mile of such track, wires and poles shall first be determined by a joint conference of the assessors of all such towns, and so much of the track, poles and wires as are situated in each town shall be therein taxed like other property upon the valuation per mile thus determined. The president, treasurer or secretary of such corporations or associations shall furnish to the assessors of any town in which their track, wires and poles are situated, a statement of the length of such track, wires and poles, when required. Tne tax hereby provided shall be in place of all other taxes upon said railroad, its property and stock, excepting for its pro- portion of the salary and expenses of the railroad com- missioners as provided in section eighty-six, the amount which each street railroad has to pay under said section eighty-six, shall be deducted from the tax provided byr this section, before payment to the town. REPORT OF TAX COMMISSION. 91 Personal Property. Si.< r. r,. Personal property for purposes of taxation what personal includes goods, chattels, moneys, and effects, vvhereso- jcct to taxation, ever they are ; all vessels at home or abroad ; obliga- tions for money or other property ; money at interest, and debts due the persons to be taxed more than they are indebted, but not including in such debts or indebted- :iuy loan on mortgage of real estate, taxable as oniythe excess real estate, except the excess of such loan above the debt^Sle the -sed value of the mortgaged real estate ; public estate mort 6 stocks and securities; shares in moneyed and other gaged>tHXable * corporations within or without the state, except as otherwise provided by law ; annuities payable to the person to be taxed, when the capital of such annuities is not taxed in this state ; and all other property not tax- able as real estate Exemptions. SECT. 7. The following property and polls are exempt Exemptions, from taxation : I Property of the United States and of this state. United states J and Maine II. The personal property of all literary and scien- property, title institutions ; the real and personal property of all Property of nt- . . erary and benevolent and charitable institutions incorporated by benevolent in- stitutions ex- the state : the real estate of all literary and scientific empt from taxa- i institutions occupied by them for their own purposes, or by any officer thereof as a residence. Corporations whose property or funds in excess of their ordinary expenses are held for the relief of the sick, the poor, or the distressed, or of widows and orphans, or to bury the dead, are benevolent and charitable corporations within the meaning of this specification, without regard to the sources from which such funds are derived, or to limitations in the classes of persons for whose benefit they are applied, except that so much of the real estate of such corporations as is not occupied by them for their own purposes, shall be taxed in the municipality in which it is situated. And any college in this state, Colleges who , e authorized under its charter to confer the degree of Bnchelor of Arts or of Bachelor of Science, and having real estate liable to taxation, shall, on the payment of State - REPORT OF TAX COMMISSION. proviso. Household furniture, apparel, tools, &c. Meeting- house*, burial places and parsonages. Young animals Farm and orch ard products. Indians and wards. Aged and infirm poor. Highway tax on islands. such tax and proof of the same to the satisfaction of the governor and council be reimbursed from the state treasury to the amount of the tax so paid ; provided, however, the aggregate amount so reimbursed to any college iu any one year shall not exceed fifteen hundred dollars ; and provided, further, that this claim for such reimbursement shall not apply to real estate hereafter bought by any such college. III. The household furniture of each person, not exceeding three hundred dollars to any one family, his wearing apparel, farming utensils, mechanics' tools necessary for his business, and musical instruments not exceeding in value fifteen dollars to one family. And in addition thereto the beds, bedding and kitchen utensils requisite for each family and a library not exceeding- one hundred dollars in value. IV. Houses of religious worship, including vestries, and the pews and furniture within the same, except for parochial purposes ; tombs and rights of burial ; family bniying grounds as described in section seven of chapter fifteen : public cemeteries as provided in section eleven of chapter fifty-five, and property held by a religious society as a parsonage, not exceeding six thousand dollars in value, and from which no rent is received. But all other property of any religious society, both real and personal, is liable to taxation the same as others' property. V. Mules, horses and neat cattle less than two years old, and swine and sheep less than six months old. VI. Hay. grain and potatoes, orchard products and wool, owned by and in possession of the producer. VII. The polls and estates of Indians ; and the polls of persons under guardianship. VIII. The polls and estates of persons who by reason of age, infirmity or poverty are in the judgment of the assessors unable to contribute toward the public charges. IX. The polls and estates of inhabitants of islands on which there are no highways, may be exempted from the highway tax at the discretion of the town to which they belong. REPORT OF TAX COMMISSION. 93 X The amieducts, pipes and conduits of nuv corpo- Aqueducts, and fixture*, con- ration, supplying a town with water, aiv exempt from taxation, when such town takes water therefrom for the extinguishment of fires, without charge. But this ex- emption does not include therein, the capital stock of but not the such corporation, any reservoir or grounds occupied stock, reservoir, grounds or for the same, or any property, real or personal, owned property. by such company or corporation, other than as herein- above enumerated. XI. "Whenever a landholder, having, prior to March Planted forest thirty, eighteen hundied and eighty-two planted or set ^Sptedfor apart for the growth and production of forest trees any u cleared land or lands from which the primitive forest had been removed, successfully cultivates the same for three years, the trees being not less in numbers than two thousand on each acre and well distributed over the same, then, on application of the owner or occupant thereof to the assessors of the town in which such land is situated, the same shall be exempt from taxation for twenty years after said application, provided* that said proviso*. applicant at the same time files with said assessors a correct plan of such land with a description of its loca- tion, and a statement of all the facts in relation to the growth and cultivation of said incipient forest ; provided further, that such grove or plantation of trees is during that period kept alive and in a thriving condition. XII. Mines of gold, silver, or of the baser metals, Mines, for ten when opened and in process of development, are exempt " from taxation for ten years from the time of such open- ing. But this exemption does not affect the taxation but not lands of the lauds or the surface improvements of the same, pavement's. 101 at the same rate of valuation as similar lands and build- ings in the vicinity. Dogs. . SECT. 8. Town assessors shall include in the tax Dogs may be lists of their town all dogs owned by or in possession U< of any inhabitant on the first day of each April, setting the number and sex thereof opposite the names of the respective owners or persons in whose possession the same are found, and shall assess on all dogs over four 94 REPORT OF TAX COMMISSION. license fees, months old an annual license fee of one dollar for each male, and two dollars for each female dog, to be col- lected of such owner, or person in possession, in the same manner as state, county and town taxes are collected. Dogs to be SECT. 9. If any such license fee remains unpaid ten killed if fee? not paid. days alter it has been demanded or the person liable, by the collector of taxes, said collector shall issue his warrant directed to any constable of his town command- ing him forthwith to destroy the dog for which such license fee was assessed. Any constable receiving such warrant from the collector of taxes of his town shall immediately execute the same by shooting, or by destroying such dog in some other convenient and expeditious manner. Disposal of SECT. 10. Treasurers of towns shall keep a separate gfrom"SS U " account of all moneys received for such licenses, and of torenmne^te* 9 a ^ sums paid out therefrom. Every person suffering them! aused by loss or damage by reason of the worrying,' maiming, or killing of his fowls or domestic animals by a dog not ms own or m nis possession, may within ten days after dence to sustain ^ fc nows o f suc [j } oss or damage, present his claim therefor in writing to the municipal officers of the town wherein such loss or damage happens ; and upon satis- factory sworn evidence of the nature and extent there- of, that the claimant has used due diligence to discover the owner of said dog and has not been able to do so, or that the owner of said dog is not financially respon- sible to the amount of such damage, they shall approve duties of such portion of said claim as they deem just, and shall town treasurers relating to ap- lodge it with the treasurer who shall register it and, roved claims annually on the first day of March, pay the amounts so approved in full, if the gross amount received by the town within the year preceding for such licenses shall be sufficient for that purpose ; otherwise he shall apply such amount pro rata in full discharge of such claims. If any portion of said license fees shall remain unexpended as aforesaid at the end of the municipal year, it shall be added to the funds of the town for general purposes. ama- REPORT OF TAX COMMISSION. 95 Si T 11. The provisions of sections eight, nine and Theeepro- T _ r ., visions not to ten shall not be construed as affecting item I\ of sec- attecr other tion fifty-nine of chapter three, nor section one of doge, chapter thirty. Real Estate. SFCT. 12. Taxes on real estate shall be assessed in Real estate where taxable. the town where the estate lies, to the owner or person in possession thereof on the first day of each April. In cases of mortgaged real estate, the mortgagor, for taxation, shall, except as provided in the following section, be deemed the owner, until the mortgagee takes possession, after which the mortgagee shall, except as provided in said section, be deemed the owner. Mortgages of Real Estate. SECT. 13. When any person has an interest in real interests under estate not exempt from taxation under the provisions SafSute, how of this chapter, as holder of a duly recorded mortgage taxed ' given to secure the payment of money, the amount of which is fixed and certain, the amount of his interest as mortgagee shall be assessed as real estate in the place where the land lies ; and the mortgagor shall be assessed only for the value of said real estate after deducting the assessed value of all such mortgagee's interests therein. Any mortgagor or mortgagee of real mortgagor or estate may bring in to the assessors of the town where such real estate lies, within such time as shall be speci- Mortgaged* 1 in fied for bringing in lists as provided in section fifty-one e8 ate * of this chapter, a statement under oath of the amount due on each separate lot or parcel of such real estate, and the name and residence of every holder of an inter- est therein as a mortgagee or mortgagor. When such _ when mort property is situated in two or more places, or when a f*?^ d e 8 r ta ra e re recorded mortgage includes for one sum two or more P la <*s or mort- gage includes estates or parts of an estate, an estimate of the amount more than one parcel for one of the mortgagee's interest in each estate or part of an sum. estate shall be given in such statement. The assessors shall, from such statements or otherwise, ascertain the proportionate parts of such estates that are the interests of mortgagees and mortgagors respectively, and shall 96 REPORT OF TAX COMMISSION. if statement not made to assessors tax valid though mortgagee's interest is not taxed to him. Mortgagees omitting to file statement to be concluded by statements in the mortgage. Limit of valua- tion. Appor- tionment. Who to be deemed owners for purposes of taxation. Tax bills of mort- gaged real estate. Deeds when treated as itort- assess the same. Whenever, in any case of mortgaged real estate, a statement is not brought in as herein pro- vided, no tax for the then current year on such real estate shall be invalidated for the reason that a mort- gagee's interest therein has not been assessed to him. When such property is situated in two or more places r the amount of the mortgagee's interest to be assessed in each place shall be proportioned to the assessed value in the respective places of the mortgaged real estate, deducting therefrom the taxable amount of prior mort- gages if any thereon. SECT. 14. If any holder of such a mortgage fails to file in the assessors' office a full statement as provided in the preceding section, the amount stated in the mort- gage shall be conclusive as to the extent of such inter- est ; but the mortgagee's interest in such real estate shall not be assessed at a greater sum than the fair cash valuation of the land and the structures thereon or affixed thereto ; and the amount of a mortgage inter- est in an estate that has been divided after the creation of such mortgage shall not be required to be appor- tioned upon the several parts of such estate, except as provided in section twenty-six. SECT. 15. Mortgagors and mortgagees of real estate shall, for the purposes of taxation, be deemed joint owners until the mortgagee takes possession ; and until such possession is taken by a first mortgagee, the assessors or the collector of taxes, upon application to any one of them, shall give to any such mortgagee or mortgagor a tax bill showing the whole tax on the mortgaged estate, and the amount included in the val- uation thereof as the interest of each mortgagee and of the mortgagor respectively. If the first mortgagee is in possession, he shall be deemed sole owner ; and any other mortgagee in possession shall be deemed joint owner with prior mortgagees. SECT. 16. Deeds of real estate absolute in form but, given as security for loans, are, for the purposes of taxation, to be treated as mortgages. REPORT OF TAX COMMISSION*. 97 Wood, Bark and Timber under Contract. S CT. 17. Whenever the owner of real estate notifies standing wood, ... , . bark and timber tin- ai'>K>rs that any part ot the wood, bark and tun- may be taxed to ber standing tlu-reon has been sold by contract in writ- pl ing. and exhibits to them proper evidence, they shall h wood, bark and timber to the purchaser. SI-XT. 18. A lien is created on such wood, bark and Lien, how enforced. timber, for the payment of such taxes ; and may be enforced by the collector by a sale thereof when cut, as provided in section two hundred. Si; T. 19. When a tenant paying rent for real estate Tenant may ,. . . , , retain from rent is taxed therefor, he may retain out or his rent the tax paid by him. taxes paid by him ; unless there is an agreement to the contrary. Personal Property, Where Taxable. SECT. 20. All personal property within or without Personal es- , . , , -11 . tate, taxable the state, except in cases enumerated in the following where owner ruction, shall be assessed to the owner in the town re where he is an inhabitant on the first day of each April. SKT. '21. The excepted cases referred to in the pre- Exceptions, ceding section are the following : I. All personal property employed in trade, in the Personal prop- erection of buildings or vessels, or in the mechanic aits, trade, ship- shall be taxed in the town where so employed on the mechanic arts, first day of each April ; provided, that the owner, his servant, sub-contractor or agent, so employing it, occupies any store, shop, mill, wharf, landing place or ship yard for the purpose of such employment in the town where such property is on said day. II. All forest products in transit from the for- p orest productB ests and floating in the streams or waters of the state wheretiaabie. or lying on the banks or shores thereof, when not at the place where they are to be manufactured or employed, are taxable to the owner in the town where he resides, unless previously taxed under section seventeen. Pro- vided* That all lumber, logs, timber, lath, pickets. Piled and stored % lumber, logs, shingles, posts, cord-wood, tan bark, poles for electric &c., taxable . ' ., , , . , , -1111.. where situated wires, or railroad ties, that may be piled or left m any A mil. vard, railroad reserve, or in anv shed, shall not be 98 REPORT OF TAX COMMISSION. deemed in transit, but shall be assessed to the owner thereof in the town where the same may be situated on the first day of April, unless taxed under section seventeen . Personal prop- HI. Personal property which, on the first day of oftheTt^c. 01 ^ each April is within the state, and owned by persons exceptions, residing out of the state, or by persons unknown ; ex- cept vessels built, in process of construction, or under- going repairs, and hides and the leather, the product thereof, when it appears that the hides were sent into the state to be tanned, and to be carried out of the state when tanned ; shall be taxed to the person having the same in possession, or to the person owning or occupying any store, shop, mill, wharf, landing, ship yard or other place therein where said property is on said day, and a lien is created on said property in behalf ^ lie e n r*on8 fa Ty of suc ^ P erson 5 which he may enforce for the re-pay- ing tax. ment of all sums by him lawfully paid in discharge of lien on the } ie ^ax. A lien is also created upon the property for property taxed. J the payment of the tax, which may be enforced, by the constable or collector to whom the tax is committed, by a sale of the property, as provided in sections one hundred and ninety-four, two hundred and two, two remedy for hundred and one. If any person pays more than his paying more . than proportion proportionate part of such tax, or if his own goods or property are applied to the payment and discharge of the whole tax, he may recover of the owner such owner's owners to proper share thereof . Persons engaged in the tanning o"s n where s tan- of leather in the state, shall on or before the first day ". of each April, f urnish to the assessors of the town where they are carrying on said business, a full account, on hand, April i. oatn? o f a ^ h' l( \ GS arK i leather on hand received by them from without the state, and all hides and leather on hand from beasts slaughtered in the state, which last named hides and leather shall be taxed in the town where they were tanned. IV. Machinery employed in any branch of mauu- Machinery and J J real estate of facture, goods manufactured or unmanufactured, and corporations. re"al estate belonging to any corporation, except when otherwise expressly provided, shall be assessed to such corporation in the town or place where they are situated or employed ; and in assessing stockholders for their REPORT OF TAX COMMISSION. 99 shares in any such corporation, their proportional part of the value of such machinery, goods and real estate, shall be deducted from the value of such shares. V. All mules, horses, neat cattle, sheep and swine Mules, horses, not exempt shall be taxed in the town where they are kept on the first day of each April, to the owner, or person who has them in possession at that time. All such animals, which are in any other town, than that in which the owner or possessor resides, for pasturing or any other temporary purpose on said first day of April, shall be taxed to such owner or possessor in the town where he resides ; and all such animals, which are out of the state, or in any unincorporated place in the state on said first day of April, but owned by, or in charge and possession of any person residing in any town, shall be taxed to such owner or possessor in the town where he resides. If a town line so divides a farm that when town line divides a the dwelling-house is in one town, and the barn or out- farm, buildings or any part, of them is in another, such animals kept for the use of said farm, shall be taxed in the town where the house is. VI. Personal property belonging to minors under Personal prop. erty of minors guardianship, shall be assessed to the guardian in the and wards, place where he is an inhabitant. The personal prop- erty of all other persons under guardianship, shall be assessed to the guardian in the town where the ward is an inhabitant. VII. Personal property held in trust by an execu- Trust property, tor, administrator, or trustee, the income of which is to W be paid to any other person, shall be assessed to such executor, administrator, or trustee, in the place where the person to whom the income is payable, as afore- said, is an inhabitant. But if the person to whom the income is payable, as aforesaid, resides out of the state, such personal property shall be assessed to such exec- utor, administrator, or trustee, in the place where he resides. VIII. Personal property placed in the hands of any corporation as an accumulating fund for the future ben- efit of heirs or other persons, shall be assessed to the person for whose benefit it is accumulating, if within 100 REPORT OF TAX COMMISSION. Undistributed personal prop- erty, in hands of executors or administrators. Of religious societies. Property taxed elsewhere. Stpok of toll bridges, how, where and to whom taxed. Stock of water, gas or electric companies, how taxed. Powers of tax officers, are the same as in assessing bank stocks. Clerks failing to make returns, the state, otherwise, to the person so placing it. or his executors, or administrators, until a trustee is appointed to take charge of it or its income, and then to such tmstee. IX. The personal property of deceased persons in the hands of their executors or administrators not dis- tributed, shall be assessed to the executors or adminis- trators in the town where the deceased last dwelt, until they give notice to the assessors, that said property has been distributed and paid to the persons entitled to receive it. If the deceased at the time of his death did not reside in the state, such property shall be assessed in the town in which such executors or administrators live. X. Personal property held by religious societies shall be assessed to the treasurer thereof in the town where they usually hold their meetings. XI. Personal property in another state or country on the first day of each April, and legally taxed there. SECT. 15. The stock of toll bridges shall be taxed as personal property, to the owners thereof, in the towns where they reside, except stock owned by per- sons residing out of the state, which shall be taxed in the town where the bridge is located, and where such bridge is in two towns, one half of such stock so owned by persons residing out of the state shall be assessed and taxed in each town. SECT. 22. Stock in any local corporation, chartered for the purpose of supplying towns with water, gas, electric lights or power, held by any person unknown, or out of the state, shall be taxed in the town where such corporation is located or transacts its ordinary business, as provided for the taxation of bank stock, in section thirty-six. SECT. 23. The powers of assessors, collectors and treasurers, and the liens on the stock, shall be the same as provided in sections thirty-six, thirty-seven, thirty- nine and fort} 7 , and the duties therein imposed on cash- iers, shall be performed by the treasurers of such corporations. SECT. 24. When the clerk of a corporation holding property liable to be taxed, fails to comply with sec- REPORT OF TAX COMMISSION. 101 tion thirty, chapter forty-six, whether the corporation was chain-red before or since the separation of Maine rate. from Massachusetts, such property for the purposes of taxation, shall be deemed corporate property, liable to be taxed to the corporation, although its stock has been divided into shares and distributed among any number of stockholders. SECT. 2.">. Such property, both real and personal, is taxable for state, county, city, town, school district, and parochial taxes, to be assessed and collected in the same manner and with the same effect as upon similar taxable property owned by individuals. If the corpora when fran- chise may be tion has the right to receive tolls, such right or trau- sold on warrant chise may be taken and sold on warrant of distress for payment of such taxes, as such property is taken and sold on execution. SECT. 26. Blood animals, brought into the state and Blood animals. kept for improvement of the breed, shall not be taxed at a higher rate than stock of the same quality and kind bred in the state SECT. 27. When an insmauceor other incorporated stock of compa- nies invented, company is required by law to invest its capital stock now to be used. or any part thereof in the stock of a bank, or other cor- poration in the state, for the security of the public, such investments shall not be liable to taxation except to the stockholders of the company so investing as making a part of the value of their shares in the capital stock of said company. SECT. '28. When the capital stock of auv insurance stock of insur- ance companies, company incorporated in the state, is taxed at its full when exempt from taxation. value, the securities and pledges held by said company to the amount of said stock, are exempt from taxation ; but if the pledge or security consists of real estate in a town other than that where the stockholder resides, it shall be taxed where it lies, and the stock shall be exempt to the amount for which it is assessed. SECT. 2'.'. When personal property is mortgaged or Mortgaged per- pledged, it shall for purposes of taxation, be deemed ?c the property of the party who has it in possession, and it may be distrained for the tax thereon. SECT. ."<). The undivided real estate of a deceased Real estate of deceased, how person may be assessed to his heirs or devisees without taxed. 102 KEPOKT OF TAX COMMISSION. designating any of them by name until they give notice to the assessors of the division of the estate, and the names of the several heirs or devisees ; and until such notice is given, each heir or devisee shall be liable for the whole of such tax, and may recover of the other heirs or devisees their portions thereof when paid by him ; and in an action for that purpose,. the undivided shares of such heirs or devisees in the estate, upon which such tax has been paid, may be attached on mesne process, or taken on execution issued on a judgment recovered in an action therefor. Or such real estate may be assessed to the executor or administrator of the de- ceased, and such assessment shall be collected of him the same as taxes assessed against him in his private capacity, and it shall be a charge against the estate and shall be allowed by the judge of probate ; but when such executor or administrator notifies the assessors that he has no funds of the estate to pay such taxes, and gives them the names of the heirs, and the proportions of their interests in the estate to the best of his knowledge, the estate shall no longer be assessed to him. Personal estate SECT. 31. Partners in business, whether residing in tobe r ta3 h w ^ e same or different towns, may be jointly taxed, under their partnership name, in the town where their business is carried on, for all personal property enumetated in paragraph one of section twenty-one, employed in such business ; and if they have places of business in two or more towns, they shall be taxed in each town for the exception. portion of property employed therein ; except that if any portion of such property is placed, deposited or situated in a town other than where their place of busi- ness is, under the circumstances specified in said para- graph, and paragraph two of said section, they shall be taxed therefor in such other town ; and in such cases they shall be jointly and severally liable for such tax. Lands may be SECT. 32. All real estate, and such as is usually owner^o^ten- called real, but is made personal by statute, may be taxed to the tenant in possession, or to the owner, whether living in the state or not, in the town where it is ; and when a state, county or town tax is assessed on part owners lands owned or claimed to be owned, in common, or in may be taxed and pay, sepa- severalty, any person may furnish the collector, or treas- REPORT OF TAX COMMISSION. 103 uivr, to whom the tax is to be paid, an accurate descrip- tion of his part of the land, in severalty, or his interest, in common, and pay his proportion of such tax; and* thereupon his land or interest shall be free of all lien created by such tax. SECT 33. AVlu-n assessors continue to assess real Assessments rotate to the person to whom it was last assessed, such assessment is valid, although the ownership or occu- pancy has changed, unless previous notice is given of lel ' such change, and of the name of the person to whom it has been transferred or surrendered ; and a tenant in tenant in com- ... , . j -, , mon, shall be common, or joint tenant, may be considered sole owner considered for the purpose of taxation, unless he notifies the assess- 0> ors what his interest is. SECT. 34. The buildings, lands, and other property Property of of manufacturing, mining and smelting corporations, made personal by their charters, and not exempt from taxation, and all stock used in factories, shall be taxed whe taxed * to the corporation, or to the persons having possession of their property or stock, in the town or place where the corporations are established, or the stock is manu- factured ; and there shall be a lien for one year on such _ nen for property and stock for payment of such tax, and it may collection, be sold for payment thereof, as in other cases; and shares of the capital stock of such corporations shall shares, not be taxed to their owners. SECT. 35. All real property in the state owned by Real estate of any bank incorporated by this state, or by any national be taxed, bank or banking association, shall be taxed in the place where the property is situated, to said bank or banking association, for state, county and municipal taxes, according to its value, like other real estate; but the _ bank etock> stock of such banks shall be taxed to the owners there- where taxed - of where they reside, if known to be residents of the state ; but taxation of shares in such banks shall not be at a greater rate than is assessed upon other moneyed capital in the hands of citizens SECT. 36. Stock of any bank held by persons out of Taxationof the state, or unknown, which has not been certified ojjjj^oluof according to section thirty, of chapter forty-six, in any the state - town in the state, and is not there assessed ; and the stock of any bank appearing by the books thereof to be 104 REPORT OF TAX COMMISSION. held by persons residing out of the state, or whose resi- dence is unknown to the assessors, shall be assessed in the town where such bank is located, or transacts its ordinary business ; and such town has a lien on such stock and all dividends thereon, from the date of such assessment, until such tax and all costs and expenses arising in the collection thereof are paid. No assign- ment, sale, transfer or attachment passes any property in such stock unless the vendee first pays such tax and cost ; cashiers of banks shall return to the assessors of the town where such bank is located or transacts its business, all the stock in such bank not returned to the assessors of other towns, according to said section thirty, of chapter forty-six ; and such returns shall be made at the time and in the manner prescribed therein, and shall be the basis of taxation of such property. Cashiers are SECT. 37. The cashier or other officer of each bank, e&nStbooka. slia11 exm bit on demand, to the assessors of any town all the books ot such bank that contain any record of the stock of such bank or any dividend, declared or paid thereon, and if requested, shall deliver to them a to deliver cer- true and certified copy, of so much of said record as recm-dof divi they require. Should any cashier neglect or refuse to perform the duties required by this and the preceding bank to r be U8eS ' section, the assessors may doom such bank in such sum as they deem reasonable, and the assessment shall bind the bank, and the tax thereon shall not be abated, and for such neglect or refusal, such cashier forfeits five cashier also hundred dollars to be recovered in an action of debt, hable - half to the prosecutor and half to the state. Shares to be SECT. 08. When returns of stock in banks and town where national banking associations and other corporations are wheVrelidence* raac ^ e according to the preceding section, or section unknown OT is tnirt y of chapter forty-six, if it is found by the assess- out of the Htate. ors o f ail y town receiving sudi returns that the holders of such stock do not reside in such town, they shall within fifteen days return the names of such stock- holders, with the amount of stock held by them to the asses :Ors of the town where such stockholders reside, if their residence is known, and within the state ; and if not, such return shall be made to the assessors of th REPORT OF TAX COMMISSION. 105 town where the bank is located, and shall be subject to section thirty->ix of this chapter. ^ pose of collecting taxes on bank stock, collectors may act in any town. SKCT. 40. Any town treasurer, or his successor in Actions maybe office, may maintain an action on the case against any treaam-en of 3 bank, and recover therein the tax assessed if unpaid, [? t k and the lawful charges upon any share thereof, if any dividend thereon has been paid after such tax was : but judgment shall not be rendered in such action for a larger sum in damages than the dividend thus paid, and all such taxes and charges may be recov- ered in one ^uit. if said treasurer so elect. Assessors' Duties. SE< T. 41 . Each assessor or assistant assessor before oath of town entering upon the duties of his office, shall take and asst subscribe the following oath (or affirmation) : !, _f rm. do solemnly swear (or affirm) that I will appraise all the property subject to taxation in the of so far as required by law, equally and at its just value and as I would appraise the same in payment of a just debt due from a solvent debtor, having regard to the current value of such property and the sales thereof other than auction sales in the locality where situated, so help me God (or, under the pains and penalties of perjury)." OF THE UNIVERSITY OF *>77 106 REPORT OF TAX COMMISSION. n and clerk ' s Assessors to notify inhabit- ants to bring in sworn inven- tories of polls and property, owners must furnish descrip- e state. merits o? te ~ amouut due on mortgages of real estate, with name and resi- dence or parties interested. Assessors to blanks'before where to be assessors may payer's state- leaving notice, t b?" the Blanks to non- sent d bj t mai'i be -non residents to make sworn return within ten days after receiving blanks oath sha11 be administered by the town clerk ancl ^ ec * ancl recordecl i 11 m ' s office. SECT. 42. Before proceeding to make an assessment, the assessors shall give seasonable notice thereof to the inhabitants of their respective towns in the manner specified in section fift3 T -oue, requiring the inhabitants to prepare and bring in sworn inventories of their polls and all their estates real and personal, whether exempt flom taxat i u or llot ' f which they were possessed on the first day of April of the same year, describing each parcel of real estate sufficiently to identify it clearly ; also statements, under oath, by the mortgagors and mortga- gees of real estate lying in said town, of the amount due on each separate lot or parcel of such real estate and the name and residence of every holder of an interest there- m as mortgagor or mortgagee, and an estimate by any mortgagee of the amount of his interest in any mort- gage of real estate situated in two or more places or mortgage including, for one sum, two or more parcels. SECT. 43. Town assessors to whom the blanks as provided by sections sixty-seven and sixty-eight are furnished, shall distribute one copy to each person, cor- poration and firm liable to taxation in their several towns, by leaving the same, on or before the tenth day of April, annually, with each person so taxable, of full age and not insane or under guardianship, or at the usual place of residence, the office or other place of business of each person, and with a principal officer of each taxable corporation ; and the assessor shall, at the time he delivers such blank form, demand and receive such statement, unless such tax payer shall re- quire further time to make out the same, in which case the tax payer shall deliver the same to the assessors, assistant assessors, or to one of them, duly filled out, subscribed and sworn to on or before the day specified by the assessors under the provision of section fifty-one. SECT. 44. If any person liable to taxation in any town or a principal officer of any corporation so liable, resic ^ es out of tne town, the assessors shall forward to such person or officer, if known, a copy of said blank inventory by mail ; and such person or officer of such corporation shall fill out and complete such inventory REPORT OF TAX COMMISSION. 107 iii all respects as herein required, under oath, and return tin.- same to the assessors within ten days after receiv- ing said blanks. SECT. 45. Any person or corporation, so liable to Failing to re- .,. . i vi i ccive blank*, taxation in any town, failing to receive such blank tax payer must inventory, shall apply to the assessors for a copy of Sy such blank on or before the fifteenth day of April and shall return the same duly completed within ten days thereafter. Corporations shall act through their presi- corporations. dents, secretaries or treasurers under this act. SECT. 46. Every person or corporation may include Vaiuemaybe - l stated in lists. in said list a statement of the value of any property therein named. The assessors shall not be bound by " said valuation, but shall make such personal examina- tion of all visible property as will enable them to ap- praise it at its just value. Tax Payers' Oath. SECT. 47. The oath required to said inventory may Oath may be . administered by be administered by one or the assessors or assistant assessors or ,, . , ' , . , , assistants, or by assessors of said town or by a justice of the peace or qualified officer, other person qualified to administer oaths, and shall be printed on said inventories as follows : "I, of do solemnly swear (or affirm) that the above is a true, Form of oath of J tax payer. full and correct list and description of all my property, both real and personal, and that I have set down only such debts as I am unconditionally bound to pay. to the amount of deduction claimed and not including debts secured by mortgages of real estate taxable as such ; that my answers to these interrogatories are true accord- ing to my best knowledge and belief, and that I have not conveyed or disposed of any property or estate, nor created any fictitious debt for the purpose of evading the provisions of law or of affecting the value and amount of my taxable property. So help me God ; (or under the pains and penalties of perjury.)" SECT. 48. In case of property in the possessiou of Trust property, trustees, estates of deceased persons and persons under guardianship, and of all property not in the care or possession of the owrers, the blank inventory shall be 108 REPORT OF TAX COMMISSION. delivered to or procured by the person to whom the property is by law taxable, who shall fill out, make oath to, and return the same to the assessors. Penalty ior wii- SECT. 49. If a person or corporation wilfully omits ful omission to . . return sworn to make, swear to and deliver said inventory, or to answer any interrogatory therein, as required by this act, or makes a false answer or statement therein ; then, said assessors shall insert against the name -'refused to inventory" or "refused to swear or affirm," and shall duties?* 01 ascertain, as best they can, the amount of the taxable shall appraise property of such person or corporation, shall appraise doSKhe* * ld tne same at its just value and shall double the sum so obtained, and the amount so found shall be the sum on which the tax shall be assessed, and such person or corporation is thereby barred of his right to make appli- right of appeal ca ^ on to the assessors or to the county commissioners payers 'who^vii- tor auv abatement of such taxes unless such inventory returnTwoni * s offerecl w ^ tn suc ^ application, and satisfactory proof produced that such person or corporation was prevented from returning it at the time required by accident, mi.s- inTentory 1 ^ to ^ O1 " tune or mistake. Any person falsely making oath perjury. t o such inventory shall be deemed guilty of perjury and persons pre- P unisne ^ accordingly. When any person shall be unav oidably prevented from making and verifying an aner recover &J * i nven tory of ms property for taxation, by sickness or or return to rile, absence, the assessors shall enter against his name "sick" or "absent," and when the assessors shall have tixed the amount thereof, he may at any time within thirty days after his recovery or return, make, verify on oath and file with the assessors, or one of them, his inventory ; but in such case before the assessors shall receive such inventory, the person making the same affiant must shall add to the required affidavit a statement to the ertiiy the cause of delay. effect that his failure to verity and return such state- ment at the proper lime w T as occasioned by absence or sickness, and the assessors, if satisfied that the same is- true and the inventory correct, shall amend their list of of his property accordingly. REPORT OF TAX COMMISSION. 109 Town Assessors' Oath after Assessment. SECT. oO. All assessors of taxes shall take and Oath of town , . . ,. , - >rs to subscribe upon the mvoice> ur u>sessmeut lists of both lists. resident and non-resident tuxes an oath or affirmation to the following effect, which may be administered by the town clerk or any justice of the peace : 1 A\ , and , -sessors for form of oath, the of in the county of , do severally solemnly swear (or affirm) that the value of all property, including moneys, credits, investments in bank stocks, joint stock companies or otherwise, of which a statement has been made to us by the per- sons required by law to list the same, is truly returned -<>t forth in such invoice : that in every case where by law we have been required to ascertain the items and value of the property of any person, firm" or corpo- ration, we have diligently and by the best means in our power, endeavored to ascertain the same : that, as we verily believe, a full list with the value thereof, estimated by the rules prescribed by law, is set forth in this invoice ; and that in no case have we knowingly omitted to demand of an}' person of whom by law we were required to make such demand, an inventory such as he was required by law to make and return ; and each for himself does solemnly swear (or affirm) that he has not in any way connived at airy violation or evasion of any of the requirements prescribed by law in relation to the enumeration and valuation of every kind of property subject to taxation." Whoever falsely takes the foregoing oath shall be penalty for deemed guilty of perjury and shall be punished oath*/ accordingly. SECT. 51. The town assessors shall on or before the Town assessors ,,.-,. ... . . _ to notify tax second Monday in April in each year give reasonable payers to bring public notice of the times and places where they will be AM* property . in session for the purpose of receiving inventories of taxable property and of hearing all parties in regard to their liability to taxation. Such notice shall be posted notices, LOW posted and pub- upon the outer door of the town house and of every Hshed. school-house in towns and plantations, and in cities, on the outer door of every voting place, and in some news- 110 REPORT OF TAX COMMISSION. Rule for ap- praisal of prop- erty by assessors. assessors must describe real estate. Assessors, how punished for neglect to deliver or mail blank inven- tories, or other neglect of duty. Penalty for wil- ful undervalua- tion of property for taxation. penalty for corruptly over- valuing prop- erty for purpose of evading law lim- iting town indebtedness. paper published in said town or city, if any, and by such other means as the assessors shall deem proper. SECT. 52. The assessors shall appraise each item of property, in order to determine its just value, at such sum as they would appraise the same in payment of a just debt due from a solvent debtor, having regard to- the current value of such property, and the sales thereof other than auction sales, in the locality where it is situ- ated, and shall, in the assessment lists, describe each parcel of real estate, sufficiently to make its exact loca- tion and identity clear. SECT. 53. If any assessor or board of assessors shall neglect to deliver in hand or leave at the residence or place of business of any person, or of an officer, as here- inbefore designated, of a corporation liable to be taxed in their respective towns, or shall fail to mail to any non-residents so liable, the blank inventory provided by this act for returns of property, when such assessor shall have reason to believe such person or corporation to be the owner or custodian of taxable property therein ; or shall wilfully violate any provision of this chapter,, or neglect to perform any duty imposed thereby or by any law of the state to which no different penalty is- affixed, he or they shall be fined for each offence one hundred dollars to the use of the town, to be recovered by indictment within one year after the commission of the offence, or by an action of debt by the town treas- urer brought within two years thereafter. SECT. 54. Every assessor of any city or town, or other person chosen to determine the valuation of prop- erty for the purpose of taxation who shall knowingly fix any such valuation of any property at a less sum than its full and fair cash value in order that the tax payers of such city or town may escape payment of their just proportion of any state or county tax, or for any other fraudulent or corrupt purpose, or who shall knowingly fix the valuation of any such property at a higher sum than its full and fair cash value for the purpose of evading or aiding in the evasion of any law w r hicb, at the time such valuation is made, is in force limiting municipal indebtedness or the rate of taxation,. REPORT OF TAX COMMISSION. Ill to a percentage of valuation, or for any other fraudu- lent, corrupt, or malicious purpose, shall be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding six months, or by both such fine and imprisonment. SECT. .")."). The assessors of each town shall make, Assessors to prepare lists of on or before the first day of August, 1802, and on or polls and prop- before the first day of August annually thereafter, in ist, annually, suitable blank books, true and accurate lists of all the male polls between twenty-one and seventy years of age belonging to such town, whether at home or abroad, distinguishing such as are exempted from taxation, and shall also make true and accurate lists of all property both real and personal, distinguishing such as is exempt by law from state and county taxes within their several towns, and all such property of whatever kind wherever situated subject to taxation therein for the then current list8 - year, including cash on hand or on deposit in banks other than savings banks, and debts due or owing from solvent debtors (exceeding the amount owing by the tax payer), also all public and private securities and stocks. And said assessors shall affix to said estates of each individual, firm and corporation set forth in said lists, the full cash value thereof as provided in sec- tion fifty-two, and shall also make separate lists of all -separate lists > of vessels, with vessels owned in whole or in part in their respective names, age, val- ue and tonnage. towns, stating the name, age, value and tonnage thereof, and shall arrange in alphabetical order an abstract of the individual list of all tax payers in such town or city, giving the aggregate valuations of personal and real list of aggre- estate, on or before the first day of August in each year, pared for for the inspection of the tax payers of such town or city ; Sx P payere. 01 and said assessors shall, on or before the first day of Sep- tember, annually, make and return on blank lists which shall be furnished by the state assessors for that pur- ^Jfe assessors pose, aggregates of polls and of the valuation of each and every class of property assessed in their respective annuall y- towns, with the total valuation and percentage of taxa- tion, and before transmitting the same to the state assessors shall make and subscribe on said aggregates an oath or affirmation, as follows : "AVe, the assessors f . i f i returns to state Of the Of , do assessors. 112 REPORT OF TAX COMMISSION. swear (or affirm) that the foregoing statement contains true aggregates of the valuation of each class of prop- form of oath. er y assessed in said town of for the year , and that we have followed all the requirements of law in valuing, listing and returning the same. So help me God" (or "under the pains and penaltiesof perjury") . Report on Corporate Property. Town assessors SECT 56. The assessors shall annually, on or andTrope^or: before the first day of September, return to the state tfonsTo staTe* ra ~ assessors the names of all corporations, except banks of issue and deposit, having a capital stock divided into shares, chartered by the state or organized under the general laws for the purposes of business or profit, and established in their respective towns or owning real estate therein, and of all companies, copartnerships, and other associations having a location or place of business in this state in which the beneficial interest is held in shares assignable without consent of the other associates specifically authorizing such transfer, and a statement in detail of the works, structures, real estate, and machinery owned by each of said corporations, companies, copartnerships, and associations, and situ- ated in such town, with the value thereof, on the first day of April preceding, and the amount at which the and return same is assessed in said town for the ihen current year. amouiitofall taxes laid 1 hey shall also, at the same time, return to the state within town for .. , . , current year, assessors the amount of all taxes laid, or voted to be laid, within said town, for the then current year, for state, county, and town purposes. Penalty for SECT. 57. If the assessors of a town neglect to comply with the requirements of the preceding section, each assessor so neglecting shall forfeit one hundred dollars. Supplementary SECT. 58. When any assessors, after completing ma^brSe, to the assessment of a tax, discover that they have by takes?* ml8 ~ mistake omitted any polls or estate liable to be assessed, they may, during their term of office, by a supplement to the invoice and valuation, and the list of assess- ments, assess such polls and estate their proportion of such tax according to the principles on which the REPORT OF TAX COMMISSION. 113 -sinent was made, certifying that they were omitted by mistake. Such supplemental assessments shall be committed t ) the collector with a certificate under the hands of the assessors, stating that they were omitted by mistake, and that the powers in their previous war- rant, naming the date of it, are extended thereto ; and the collector has the same power, and is under the same obligations to collect them, as if they had been con- tained in the original list ; and all assessments shall be valid, notwithstanding that by such supplement the whole amount exceeds the sum to be assessed by more than five per cent. SECT. 59. The assessors shall allow the selectmen, i nTen torie8 not mayor and treasurer of such town or city and the state's attorney for the county to examine the inventory or inventories of any person which they may name, and examine them, shall also permit each tax payer or his attorney to examine his or her own inventory or inventories and shall not allow any other person to inspect said inven- tories. Any or all such inventories shall be lodged in the office of the assessors, and shall be produced in court by one of them upon subpoena for that pur- pose. The contents of said inventories shall not be disclosed by any person having access to the same, _ tne contents except as set forth in this section and in the event of prosecutions for breach of the provisions of this act. Whoever violates the provisions of this section forfeits one hundred dollars. penalty. SECT. 60. The assessors shall deduct from the debts due, if any, to any tax payer, only so much of his Tax payer can indebtedness as is in excess of the aggregate amount have deduction lor such debts or bonds, stocks and other securities exempt from tax- only as are in ex cess of his ation by the laws of this state and the amount of his non-taxable , ... securities and deposits in any savings bank, savings institution, or deposits. trust company in this state or elsewhere ; and no debt owing shall be taken into consideration in estimating -the creditor's such deduction, unless the person claiming the deduc- Se^e muU be" tion states in his inventory the amount of such debt, and the name and place of residence of the person to dedT1cted - whom it is owing. 114 REPORT OF TAX COMMISSION. Taxes assessed according to this chapter. Liability of assessors im- personal faith- fulness only. SECT. 61. Except in parishes and societies where different provision is made, all taxes shall be assessed according to the provisions of this chapter. SECT. 62. Assessors of towns, plantations, school districts, parishes and religious societies, are not re- sponsible for the assessment of any tax, which they are by law required to assess ; but the liability shall rest solely with the corporations for whose benefit the tux was assessed, and the assessors shall be responsible only for their own personal faithfulness and integrity. Governor to nominate chair- man and two associates as bard of state assessors. Their term of office. Powers of state assessors to pn> cure evidence. State Board of Assessors. SECT. 63. The governor shall nominate, and by and with the advice and consent of the council appoint, one officer to be designated chairman of state assessors and two others one of whom shall be taken from each of the two principal political parties to be associate state assess- ors, the three to be known as the board of state assessors, who shall take and subscribe the oath provided by the constitution of this state, Art IX , Sec. 1, and hold their offices as provided in the following section. SECT. 64. The term of office of the chairman of said board shall be for six years and until a successor is ap- pointed and qualified in his place. The term of one of said associate assessors under such first appointment, shall be for four years and of the other for two years, and until another is appointed and qualified in his place. The senior member, after the fitst appointment, as aforesaid, shall be chairman of the board. Said state assessors shall be appointed within sixty days after the approval of this act, and shall hold their first meeting at the state capitol within thirty days thereafter. The term of appointment of such assessors thereafter shall be for six years, excepting appointments made to fill uu expired terms. SECT. 65. Said board of state assessors shall have power to summon before them and examine on oath any town assessor or other officer or person whose testimony they shall deem necessary in the proper discharge of their duties, and may require such witnesses to bring with them, for examination, any records or other public REPORT OF TAX COMMISSION'. 115 documents in their custody or control which said state - may deem necessary for their information in the performance of their duties. i . ;;. Any two of said board shall have authority TWO a quorum to transact all business appertaining to their ollice, but to all three must be duly notified of each and every meet- ing for the transaction of business. In case of the death, resignation, refusal, or inability to seive of any _ v . lt .. llicies }ll one or more of said boar.l, the governor, with advice g}, e ei i )oanl ' how and consent of the council, shall, as soon as may be, fill such vacancy by appointment, and the assessor so appointed shall hold said office for the balance of the term of the person in whose place he was appointed. r. r>7. The state assessors shall, on or before state assessors the first day of April, 1892, and annually thereafter, SankTtttown on or before said day, furnish at the expense of the u '" state, to the assessors of the several towns, blank inventories sufficient in number to meet the require- ments of this ace. and in most convenient form, with suitable interrogatories, to contain, when filled, a full what the blanks mu-t statement of all taxable property real and personal of contain. each tax payer in said town on the first day of April in said year. Said blanks shall be so formulated by the state assessors as to require, under oath, from each person and corporation such full information as to each class and item of his or its taxable property, real and personal, as will enable the town assessors, after a per- sonal examination of all visible property, to appraise all of such property at its just value in money. SECT. 68. Such inventories shall also contain, when Debts owing by filled, a statement of debts actually due from said tax Se Snount'of payers on the first day of April, to the amount of any SiedTrom deduction claimed as an offset to debts due said tax debts tationery, printing, notices and summonses, and may may employ employ such clerical assistance as they shall deem neces- c sary, the expenses for which shall be audited by the expenses, governor and council. Si.( r. 76. A statement of the amount of the assessed Equalizing valuation for each town, after adjustment as provided aggregates In by section seventy-eight, the aggregate amount for each county, and for the entire state as fixed by the board of equalization, shall be certified by said board and deposited in the office of the secretary of state as soon as completed, and before the first day of December pre- ceding the regular sessions of the legislature. The valuation thus determined shall be the basis for the and county computation and apportionment of the state and county taxes, until the next biennial assessment and equaliza- tion. SI-XT. 77. Said state assessors shall be held to a State as , e830rs constant attendance upon the duties of their office ; shall be vigilant and prompt in the correcting and equalizing of valuations and in the investigation of charges of con- cealed property liable to assessment. Said state assess- ors shall receive a salary of two thousand dollars each, and for necessary expenses in the performance of their expense duties such sum as shall be allowed by the governor audited by gov- and council on properly itemized accounts. couca d SKIT. 78. Said state assessors shall equalize and Their powers m adjust the assessment list of each town, by adding to or deducting from it or any part thereof, such amount as. when compared with valuations in other towns shall . qualize the same : and said lists after they have been so equalled shall constitute the general list of the state upon v. inch state and county taxes shall be assessed. SLCT. 7 ( J. If the assessors of any town, or one of if no lists are them, shall fail to appear before said board of equaliza- tovnTftMeiwo tion or to transmit to them the lists hereinbefore named Equalization, US REPORT OF TAX COMMISSION. valuation how wild lauds to description. . statement of timber permits, be returned. within ten days after the mailing or publication of notice or notices to them, to so appear or transmit said lists, the said board may in its discretion report the valuation of the estates and property and lists of polls liable to taxation in the town so in default, as it shall deem just and equitable. SECT. 80. The land agent shall prepare and deliver to said state assessors full and accurate lists of all townships or parts of townships or lots or parcels of wild lands in this state sold and not included in the tax lists, whether conveyed or not, with the fair value thereof, and shall lay before said state assessors all information in his possession touching the value and description of wild lands at their request ; also a state- ment of all lands on which timber has been sold or a permit to cut timber has been granted by lease or otherwise, with the fair value thereof. All other state officers, when requested, shall in like manner lay all information in their possession, touching said valuation before said state assessors. Treasurer of warrantsfor tax for each Ie a arvtei lbe ordered. What state treasurer's warrant shall State Taxes. SECT. 81. When a state tax is ordered by the legis- lature, the treasurer of state shall forthwith send his warrants directed to municipal officers of each town or other place, requiring them to assess upon the polls and estates of each, its proportion of such state tax for the current year ; and shall in like manner send like war- rants for the state tax for the succeeding year, forth- with upon the expiration of one year from the time such ^ ax * s so ordered. The tax for each year shall be sepa- lately ordered and apportioned ; and the amount of such proportion shall be stated in the warrants. SECT. 82. The treasurer, in his warrant, shall require said officers to make a tair list ot their assessments, setting forth in distinct columns against each person's name, how much he is assessed for polls, how much for real estate, and how much for personal estate, distin- guishing any sum assessed to such person as guardian, or for any estate in his possession as executor, adminis- trator, or trustee ; to insert in such list the number of REPORT OF TAX COMMISSION. acres of land assessed to each non-resident proprietor, and the value at which they have estimated them ; to commit such list, when completed and signed by a majority of them, to the collector or constables of such town or other place, with their warrants in due form* requiring them to collect and pay the same to the treas- urer of state, at such times as the legislature, in the act authorizing such tax, directed them to be paid ; and to return a certificate of the names of such officers, and the amount so committed to each, one month at least before the time at which they are required to pay in such tax. State Taxation of Railroads. SECT. 83. Every steam railroad company, incorpo- Annual returns rated under the laws of the State, or doing business comp^es. therein, shall annually, between the first and fifteenth days of April, return to the secretary of state under oath of its treasurer, the amount of the capital stock of the corporation, the number and par value of the shares, and a complete list of its shareholders, with their places of residence and the number of shares belonging to each on said first day of April. The returns shall also contain a statement of the whole to state length length of its line, the length of its line within the state, assessed value , , /. , j- i of stations, c. and the assessed value m each town of its stations and other property taxed by municipalities. SECT. 84. Every corporation, person or association, Corporations or operating any such railroad in the state, shall pay to STg the treasurer of state, for the state, an annual excise a tax, for the privilege of exercising its franchises in the state, which, with the tax provided for in sections four and eighty-six, is in place of all taxes upon such rail- road, its property and stock. There shall be appor- state shall tioned and paid by the state from the taxes received under this and the following section, to the several 3' thereS? cities and towns, in which on the first day of April in each year, is held railroad stock exempted from other taxation, an amount equal to one per cent, on the value of such stock on that day, as determined by the state assessors ; provided, hoicever^ that the total amount proviso. thus apportioned on account of any railroad shall not 120 REPORT OF TAX COMMISSION. Amount of tax, how to be ascertained. railroads partly outside the state, tax upon, how to be ascertained. Steam railroad companies taxed for sala- exceed the sum received by the state as tax on account of such railroad ; and provided further ^ that there shall not be apportioned on account of any railroad and its several parts, if any, operated by lease or otherwise, a greater part of the whole tax received from such rail- road and its several parts, than the proportion which the amount of capital stock of such railroad and its several parts owned in this state bears to the whole amount of the capital stock of said railroad and its several parts. SECT. 85. The amount of such annual excise tax shall be ascertained as follows : the amount of the gross transportation receipts as returned to the railroad com- missioners for the year ending on the thirtieth day of September preceding the levying of such tax, shall be divided by the number of miles of railroad operated, to ascertain the average gross receipts per mile ; when such average receipts per mile do not exceed two thou- sand two hundred and fifty dollars, the tax shall be equal to one quarter of one per cent, of the gross trans- portation receipts ; when the average receipts per mile exceed two thousand two hundred and fifty dollars and do not exceed three thousand dollars, the tax shall be equal to one-half of one per cent, of the gross receipts ; and so on increasing the rate of the tax one-quarter of one per cent, for each additional seven hundred and fifty dollars of average gross receipts per mile or frac- tional part thereof. When a railroad lies partly within and partly without the state, or is operated as a part of a line or system extending beyond the state, the tax shall be equal to the same proportion of the gross re- ceipts in the state, as herein provided, and its amount shall be determined as follows : the gross transporta- tion receipts of such railroad, line or system, as the case may be, over its whole extent, within and without the state, shall be divided by the total number of miles operated to obtain the average gross receipts per mile, and the gross receipts in the state shall be taken to be the average gross leceipts per mile multiplied by the number of miles operated within the state. SECT. 86. In addition to all other taxes now pro- vided by law, every corporation operating a railroad REPOKT OF TAX COMMISSION'. 121 shall pav to the state treasurer such a sum as shall be nee and , , expenses of its pro r done by it in this state, in place of the tax above provided ; and the insurance commissioner may require the return upon which such tax may be assessed to be made to him, and the state assessors shall assess such tax ; and if it is not paid as provided in section one hundred and twenty the insurance commissioner shall suspend the right of said company to do business in this state. Unlicensed Insurance Companies. SECT. 123. No person shall act as an inspector of inspectors of property for any insurance company or association of' companies, of this state, or of any other state or country not licensed to do business in Maine, until he has received a license therefor from the insurance com- missioner, authorizing him as representative of the com- pany stated, to inspect property for said company ; and such license shall continue until the first day of the next January and may be renewed from year to year ii the insurance commissioner deem it advisable. For each lieew* fee. such license or renewal the insurance commissioner shall receive twenty dollars for the state. If any person without first sfivino- such bond and receiving such license penalty for inspection with- mspects any property for any such unauthorized company out license from 132 REPORT OF TAX COMMISSION. insurance commissioner. Inspector to make sworn return to insur- ance commis- sioner annually what it must contain. Inspector to give bonds. conditions of bond. or association of companies or offers to make such inspec- tion upon solicitation of the owners of property or persons in possession thereof or otherwise, or in any way per- forms the work of an inspector or solicitor of insurance risks, he shall be punished by a fine not exceeding five hundred dollars or by imprisonment not exceeding sixty da}s for each offence, the fine to be recovered as pro- vided in section eighty-four of chapter forty-nine. SECT. 124. Each inspector shall keep a correct account of all property by him inspected, and, on or before the thirty-first day of January of each year make a sworn statement and return to the insurance commis- sioner upon blanks provided by said commissioner, of all property insured by the company or companies he represents, based upon his inspections, for the year ending December thirty-first preceding, with the amount of insurance written thereon, the company or companies in which insured, and the amount received by said company or companies as premiums. SECT. 125. Every such inspector before receiving a license shall be required to give bond to the insurance commissioner for the state in such sum and with such sureties resident in this state as the insurance commis- sioner may approve, conditioned for the faithful per- formance of his duties as prescribed by this act and for the payment of all taxes assessed against the company or companies he represents, in case such company or companies neglect to pay said taxes within the time provided. Taxation of life insurance com- panies. real estate locally taxed. on gross amount of premiums and surplus, two per cent, after de- ducting value of real o state. Domestic Life Insurance Companies. SECT. 126. Every life insurance company or associa- tion organized under the laws of this state, in lieu of all other taxation shall be taxed as follows : First, its real estate shall be taxed in the town in which such real estate is situated, like other real estate therein. Second, it shall pay to the state treasurer, for the state a tax of two per cent, upon all premiums, whether in cash or notes absolutely payable, received from resi- dents of this state during the year preceding the assess- ment, as hereinafter provided. Third, it shall pay to REPORT OF TAX COMMISSION'. 133 the stiite treasurer for the state a tax of three-fourths of one per cent, per annum on its surplus computed according to the laws of this state, after deducting the value of its real estate in this state as fixed in deter- mining such surplus. Said surplus shall be determined by the insurance commissioner, and his certificate there- of to the state assessors shall be final, and said assessors shall assess said taxes on such premiums and surplus. SECT. 127. Every such company shall include, in its Returns to annual return to the insurance commissioner, a state- commissioner, ment of the gross amount of premiums as provided in the preceding section, and of the real estate held by it in this state on the thirty-first day of December pre- ceding SECT. 128. Sections one hundred and twenty and sections 120 & one hundred and twenty-one, so far as not inconsistent m appllc herewith shall apply to such companies or associations. Savings Banks and Trust Companies. SECT. 129. Every savings bank, institution for sav- Taxation of savings banks ings and trust and loan association incorporated under and trust and the laws of the state shall, semi-annually, on or before tions. the second Mondays of May and November, make a return to the state assessors, signed and sworn to by its returns to J state assesers, treasurer, of the average amount of its deposits and accumulations for the six months preceding each of said days, deducting an amount equal to the amount of United States bonds and shares of corporation stocks such as are by law of this state free from taxation to the stock- holders and the assessed value of real estate owned by said bank, institution or association, together with a statement in.detail of its loans, investments and deposits within and without the state in separate columns with aggregates. For wilfully making a false return, the cor- poration treasurer forfeits not less than five hundred _ p e ua ity for nor more than five thousand dollars. Such treasurer r eturnf ?alse shall pny to the treasurer of state a tax on account of _ tax payable to its deposits and accumulations as follows : On so g' t ^ e surerot much of such funds as is loaned to persons resident or corporations located and doing business in this state, and so much as is invested in securities of this state 134 REPORT OF TAX COMMISSION. Tax, how to be how appro- priated. when pay- able. Deposits are exsmpt from municipal taxa- tion; but not land held by bank. Return of bank stock pledged as collateral, shall be made to assessors of municipalities where owners reside. public or private, or on hand or deposited by said banks or associations in this state one-half of one per cent, a year ; and on so much of said funds as are loaned, invested or deposited otherwise, one per cent. SECT. 130. One-half of said tax shall be assessed on the average amount on deposit or invested or loaned including accumulations, for the six months ending on and including the last Saturday in April, and the other half on such average for the six months ending on and including the last Saturday in October. One-half of the sum so paid shall be appropriated for schools, in the manner provided for tax on banks of circulation, in section one hundred and seventeen of chapter eleven, and one-half to the state, and such taxes shall be paid semi-annually on or before the last Saturdays of May and November. SECT. 131. All deposits and accumulations in sav- ings banks in the state are exempt from municipal tax- ation to the bank or to the depositor, but real estate owned by the bank, not held as collateral security, may be taxed by the town in which the same is located. SECT. 132. Treasurers of savings banks, on the first day of each April shall return to the assessors of towns, where persons reside who own bank stock which is pledged or transferred to said bank as collateral security for loans, the names of persons pledging or transferring such stock and the amount of the same ; and stock so pledged or transferred by persons residing out of the state shall be returned by such treasurers in the same manner to the assessors of the town in which the bank whose stock is so pledged or transferred is located. For the purposes of taxation, bank stock so pledged or transferred shall be deemed the property of the persons so pledging or transferring it. REPORT OF TAX COMMISSION. 135, Taxation of Companies When no Returns Have Been Made. SECT. 133. If any corporation, company or person state a^ J , to tax coinpa- f ails to make the returns required by sections ninety- mes in absence of returns, three, ninety-six or ninety-nine, the state assessors double assess- shall make an assessment of state tax upon such cor- m poration, company or person on such valuation, or on such gross receipts thereof, as the case may be, as they think just, with such evidence as they may obtain, and shall double the amount thereof, and such assessment shall be final. If any corporation, company or person remedies for fails to pay the taxes required or imposed by sections Snf offtat?" ninety-two, ninety-five, ninety-eight or one hundred to and twenty-nine, the treasurer of state shall forthwith commence an action of debt, in the name of the state, for the recovery of the same with interest. In addition to other remedies for the collection of state taxes upon any corporation, such taxes with interest may be recovered by an action of debt, or an action on the case, in the name of the state. Taxation of Corporate Franchises. SECT. 134. Every corporation, company or associa- A tax provided tiou, now or hereafter chartered by the legislature or porate fran^ r organized under the general laws of the state for pur- ch poses of business or profit in the state, or without the state and having an office or place of business in the state for the direction of its affairs or for the transfer of its shares, and having a capital divided into shares, except manufacturing, mining and quarrying corpora- exceptions, tions, transportation, telegraph and telephone com- panies, banking corporations, and corporations for supplying heat, light, water or power, operating within the state, and other corporations now subject to an annual state tax, shall pay to the state treasurer on the first day of July, annually, a franchise tax of one-tenth of one per cent, upon its capital stock at the par there- of ; provided, however, that the assessed valuation of property taxed within the state as belonging to any 136 REPORT OF TAX COMMISSION. corporation subject to said franchise tax, shall be -deductions, deducted f r om the amount of its capital stock and said franchise tax shall be assessed upon the balance. SS to state 6 SECT> 135 * Tne clerk or other officer having the aif e b S01 Ja a nTst custoc ty of toe records of any corporation subject to the franchise tax provided by the preceding section, shall by the first day of January, annually, make return to state assessors showing ttie principal place of business of said corporation, its officers and their several places of residence, its capital stock, with the par value of the shares, whether paid in or not paid in, and the assessed valuation of all its property taxed within the state and where taxed. SECT. 136. All officers of any such corporation and Omcers person- francWse e tax r otlier P ers ons assuming to represent it in the state by of corporations, having charge of its affairs or books of account, record or transfer of its shares, shall severally be personally liable for the amount of the tax imposed upon such cor- poration under section one hundred and thirty-four, if the same is not paid as therein required. Any such corporation * failing to make corporation f ailing to make such return or to pav such returns or pay tax, forfeits cor- tax within six months after it shall have become due, porate rights. forfeits all its corporate rights and franchises. Pro- proviso. vided, however, that such officers, on application to the state assessors, and satisfactory proof that such corpo- ration has ceased to do business or in any way to exer- cise its corporate rights or franchises, and after its charter and corporate powers shall have become for- feited under the provisions of this act, may be relieved of their liability to pay said tax. Enrolment and Organization Taxes. Taxim osedon ^ ECT - 137 - Every corporation whether chartered by corporate char- act of legislature or organized under a general law, ters and articles of association, shall, before the enrolment of its act of incorporation, or the recording in the office of the secretary of state of its certificate of organization or articles of association, pay to the treasuier for the use of the state an enrol- amount of ment or organization tax as follows : When the speci- taxes provided fie( j amount o f ca pit a l of such corporation does not exceed five thousand dollars, the sum of twenty-five KKPOKT OF TAX COMMISSION. 137 dollar* : when more than five thousand and not exceed- in a* ten thousand dollars, the sum of fifty dollars ; when more than ten thousand and not exceeding twenty thou- sand dollars, the sum of one hundred dollars : when more than twenty thousand and not exceeding forty thousand dollars, the sum of one hundred and fifty dol- lars ; when more than forty thousand and not exceeding one hundred thousand dollars, the sum of two hundred dollars : and for each fifty thousand dollars or major fraction thereof above one hundred thousand dollars, the sum of one hundred dollars. Any increase in the increase of J . . capital stock capital stock of any corporation after its original charter subject to like or organization, shall be subject to tax in like propor- tion, and this provision shall apply to all corporations in existence when this act takes effect. In default of forfeiture for uou-payment of payment as aforesaid, within six mouths after the taxes, approval of such act of incorporation, or of such organ- ization, if under a general law, by the proper officer or officers, such act of incorporation or such organization, shall be null and void. The taxes provided by the fore exemption J from fees. going section are in lieu of all fees heretofore provided by law upon the organization of corporations. SECT. 138. The foregoing section shall not apply to societies incorporated under chapter fifty-five. Other Private or Special Acts of Legislature. SECT 139. No private or special act of the legisla- A tax on other ture other than those specified in section one hundred ?pecLucts and thirty-seven, shall be enrolled in the office of the pl secretary of state, or have the force and effect of law. until the party or parties requesting the passage of such act shall have paid into the state treasury the following _ am0 untof sums, to wit ; on every act authorizing the division of tax ' a county, city or town, the erection of a toll bridge, the extension of a wharf into tide waters, the erection of a road or bridge across tide waters, the construction of a boom or the maintenance of a steam ferry, the sum of fifty dollars ; on every other private and special act not hereinbefore enumerated, including all acts amenda- tory of and additional to other private and special acts, ihe sum of ten dollars. 138 REPORT OF TAX COMMISSION. State tax on lands in places not incorpo- rated . Such lands are subject to county taxes. Taxation of Lands in Places not Incorporated. SECT. 140. Lands not exempt, and not liable to be assessed in any town, shall be taxed by the legislature for a just proportion of all state and county taxes as herein provided for ordering the state and county taxes upon property liable to be assessed in towns, and shall be valued and inventoried by the state assessors for that purpose. SECT. 141 . Such lands may be assessed by the county commissioners according to the last valuation by the state assessois fora due proportion of county taxes. Lists of such taxes shall immediately be certified and transmitted by the county treasurer to the treasurer of treasurer of state. In the list, each such township and tract shall be countv to cer- tify lists of such sufficiently described, with the date, and amount of taxes to treas- . urer of state, assessment on each. I he treasurer oi state shall, in his credit for the 6 books, credit the county treasurer for the amount of amount thereof. , . , . , . each such assessment ; and when paid to him, shall cer- tify to the county treasurer the amount of tax and interest so paid, on the first Monday of each January. SECT. 142. When the legislature assesses such state tax, the treasurer of state shall, within three months thereafter, cause the lists of such assessments, with the lists of any county tax so certified to him, both for the current year, to be advertised for three weeks success- ively in the state paper, and in some newspaper, if any,, printed in the county in which the land lies, and shall cause like advertisement of the lists of such state and county taxes for the following year to be made within three mouths after one year from such assessment. Said such lauds are lands are held to the state for payment of such state and m e ent of taxes! 3 " county taxes, with interest thereon at the rate of twenty per cent., to commence upon the taxes for the year in which such assessment is made at the expiration of one year and upon the taxes for the following year upon the expiration of two years from the date of such assess- ment. Lauds shall be SECT. 14o. Owners of the lands so assessed and forfeited in one -, , . n 1^.1 xi year, if taxes are advertised, may redeem them, by paying to the treasurer of state the taxes with interest thereon, within one year from the time when such interest commences. Each Lists of assess ments shall be certified and advertised annually. REPORT OF TAX COMMISSION. 139 owner may pay for his interest in any tract, whether in common or not, and shall receive a certificate from the treasurer of state, discharging the tax upon the number of acres, or interest, upon which such payment is made. Kach part or interest of every such township or tract, upon which the state or county taxes so advertised are not paid with iLterest within the time limited in this section for such redemption, shall be wholly forfeited to the state, and vest therein free of any claims by any former owner. SECT. 144. Lands thus forfeited shall, annually in Treasurer of September, be sold by the treasurer of state at public forfeited lands auction to the highest bidder ; but never at a price less September 11 than the full amount due thereon for such unpaid state ar and county taxes, interest, and tost of advertising. Notice of the sale shall be given by publishing a list of _ not1ce shal i be the lauds to be sold with the amount of such unpaid ^^my taxes, interest, and costs on each parcel, and the time i )a P er - and place of sale, in the state paper, and in some news- paper, if any, printed in the county in which the lands lie, three weeks successively, within three months before the time of sale. SECT 145. If anv such tract is sold for more than * Surplus shall be the amount due, the surplus shall be held by the state paid to owners, to be paid to the owner, whose right has been so for- feited, upon proof of ownership produced to the gov- ernor and council. SECT. 146. Any owner may redeem his interest in Owner may pay . tax before sale, such lauds, by paying to the treasurer of state his part or he may of the sums due at any time before sale ; or after sale, the purchaser , ., , . within one year. by paying or tendering to the purchaser, within a year, his proportion of what the purchaser paid therefor at the sale, with interest at the rate of twenty per cent, a year from the time of sale, and one dollar for a release ; and the purchaser, on reasonable demand, shall execute such release ; and if he refuses or neglects, a bill in equity may be maintained to compel him, with costs and any damages occasioned by such refusal or neglect. Or such owner may redeem his interest by paying as aforesaid to the treasurer of state, who, on payment of fifty cents, shall give a certificate thereof ; which certi- 140 REPORT OF TAX COMMISSION. r - fees which sheriffs have for levying executions, except that travel, in case of distress, shall be computed only from the dwelling-house of the officer to the place where it is made. SKCT. 195. Every collector or constable, required to Collector to collect taxes, shall receive a warrant from the selectmen rant. or assessors of the kind hereinbefore mentioned, and shall faithfully obey its directions. SECT. 196. The assessors shall require such con- TO give ap stable or collector to give bond for the faithful discharge of his duty, to the inhabitants of the town, in such sum, and with such sureties, as the municipal officers approve ; and bonds of collectors of plantations shall be given to the inhabitants thereof, approved by the assessors, with like conditions. SECT. 197. When a tax is paid to a collector or con- constable?, & c ., stable, he shall give a receipt therefor on demand ; and on?emand! ptB if he neglects or refuses so to do. he forfeits five dollars to the aggrieved party, to be recovered in an action of debt. SECT. 198. If a constable or collector dies before if collector dies, perfecting the collection of an assessment, the assessors ap^oTntlne. shall appoint, at the charge of their town, some suitable person to perfect the collection, and grant him a suffi- cient warrant for that purpose. SECT. 199. All plantations, required to pay any plantations may portion of the public taxes, have all the powers of towns ors. 08e so far as relates to the choice of constables and col- lectors and the requiring bonds fi- parish dies without settling his accounts or taxes com- trator to settle , . , . within two mitted to him to collect, his executor or administrator, months; failing to do so, charge- within two months after his acceptance of the trust, able with n amount. shall settle with such assessors for what was received by the deceased in his life time ; with the amount so received, such executor or administrator is chargeable as the deceased would be if living ; and if lie fails so to settle, when he has sufficient assets in his hands, he shall be chargeable with the whole sum committed to the deceased for collection. SECT. 225. If the constable or collector of any town Treasurer to is- . . , _ , sue his warrant or parish, to whom taxes have been committed for col- against deiin- lection, neglects to collect and pay them to the treasurer quei named in the warrant of the assessors by the time there- in stated, such treasurer shall issue his warrant, return- able in ninety days, and in substance as follows, to the sheriff of the county or his deputy, who shall execute it. "A. B.. treasurer of the of , in the county of form of . . ., warrant. , to the sheriff of said county, or his deputy, GREETING. Whereas C. D., of aforesaid, (addition) on the day of ,18 , being a of taxes granted and agreed on by the aforesaid, had a list of assess- ments duly made by the assessors of the aforesaid, amounting to the sum of $ . , committed to him with a warrant under their hands, directing and em- powering him to collect the several sums in said assess- ment mentioned, and pay the same to the treasurer of the aforesaid by the day of ,18 , but the said C. D. has been remiss in his duty by law required, and has neglected to collect the several sums aforesaid, and pay them to the treasurer of the aforesaid ; and there still remains due thereof the sum of 8 . , and the said C D still neglects to pay it: You are hereby, in the name of the State, required forthwith to levy the aforesaid sum of $ . , by distress and sale of the estate, real or personal, of said C. D., and pay the same to the treasurer of said , returning the overplus, if any, to said C. D. And for want of such estate, to take the body of said C. D., and him 160 REPORT OF TAX COMMISSION. commit to the jail in the county aforesaid, there to re- main until he has paid the said sum of $ . , with forty cents for this warrant, together with your fees, or he is otherwise discharged therefrom by order of law ; and make return of this warrant to myself, or my successor, as treasurer of said , within ninety days from this time, with your doings therein. Given under my hand, this day of , in the year eighteen hundred and , Treasurer of ." Sheriffs ciut SECT. 226. On each execution or warrant of dis- warrant"* SUCh tl ' ess i ssuec ^ ^J tne treasurer of state, or by the treasurer of a county, town, or parish, against a constable or col- lector, and delivered to a sheriff or his deputy, he shall make return of his doings to such treasurer, within a. reasonable time after the return day thereiu mentioned, with the money, if any, that he has received by virtue thereof ; and if he neglects to comply with any direction of such warrant or execution, he shall pay the whole treasurer may sum mentioned therein. When it is returned unsatis- warrant. al fied, or satisfied in part only, such treasurer may issue an alias for the sum due on the return of the first ; and so on, as often as occasion occurs. A reasonable time after the return day, shall be computed at the rate of forty-eight hours for every ten miles distance from the dwelling-house of the sheriff or his deputy to the place where the warrant is returnable. warrants to be SECT. 227. When a sheriff or deputy is deficient as coroner when aforesaid, such treasurers may direct warrants to a cor- quen? " dehn ~ oner ^ ^ ne county, requiring him to distrain therefor upon the delinquent's real or personal estate ; and the coroner shall execute such warrants as a sheriff does on deficient constables and collectors. Property dis- SECT. 228. Any officer selling personal property sokfaaoneie. distrained under a warrant from such treasurers against a deficient constable or collector, shall proceed as in the sale of such property on execution. Real estate SECT. 229. When a warrant of distress from such taken, how noti- , i i /? i & fied to be sold, treasurers is levied on the real estate of a deficient con- stable, collector, sheriff, or deputy sheriff, for the pur- pose of sale, fourteen days' notice of the sale, and of REPORT OF TAX COMMISSIOV. 161 the time and place, shall be given, by posting adver- tisements in two or more public places in the town or place where the estate lies, and in two adjoining towns. SKCT. "230. At that time and place, the officer hav- Proceedings at ing such warrant shall sell, at public vendue, so much 8ale ' of such estate, in common and undivided with the resi- , due, if any, as is necessary to satisfy the sum named in the warrant, with all legal charges ; and execute to _ deed ^ ade to the purchaser a sufficient deed thereof, which shall be convey title. as effectual as if executed by the deficient owner. SECT. 231. If the proceeds of such sale do not Proceedings when body is satisfy such sum and legal charges, the treasurer wno taken, issued the warrant, shall issue an alias warrant for the sum remaining due ; and the officer executing it shall arrest such deficient officer, and proceed as on am execution for debt ; and such deficient officer shall have the same rights and privileges as a debtor arrested or committed on execution in favor of a private creditor. SECT. 232. When any constable or collector of taxes rights and privileges of is taken on execution under this chapter, the assessors party arrested. may demand of him a true copy of the assessments, which he received of them and then has in his hands unsettled, with the evidence of all payments made thereon ; and if he complies with this demand, he shall receive such credit as the assessors, on inspection of the assessment, adjudge him entitled to, and account for the balance ; but if he refuses, he shall forthwith be committed to jail by the officer who so took him, or by a warrant from a justice of the peace, to remain there until he complies ; and the assessors shall take and use copies of the record of assessments instead of the copies demanded of him. SECT. 233. The same town or parish may, at any when die- time, proceed to the choice of another collector, to complete the collection of the assessments, who shall be sworn and give the security required of the first taxes> collector ; and the assessors shall deliver to him the uncollected assessments, with a proper warrant for their collection, and he shall proceed as before pre- scribed. 11 1(52 REPORT OF TAX COMMISSION. Collector liable SECT. 234. When the tax of any person named in he r c?mnSts eSB said assessment does not thereby appear to have been within a year. p a i c i ? t> u t such person declares that it was paid to the former collector, the new collector shall not distrain Fees for com- or commit him, without a vote of such town or parish mitment. , firgt certified to him by its c } er k. SECT. 235. When a town neglects to choose any officers may di- constable or collector to collect a state or county tax, taxeTto be eom- the sheriff of the county shall collect it, on receiving menced against any delinquent, an assessment thereof, with a warrant under the hands of the assessors of such town, duly chosen, or appointed proviso. by the county commissioners, as the case may be. SECT. 236. When plantations neglect to choose con- Towns may ap- point treasurer stables or collectors, or if those chosen and accepting collector, his assistants to give their trust neglect their duty, such plantations shall be proceeded against as in the case of deficient towns ; and such deficient constables or collectors are liable to the same penalties, and shall be removed in the same man- ner, as deficient constables and collectors of towns. Abatement for SECT. 237. The sheriff or his deputy, on receiving ment of taxes." such assessment and warrant for collection as is men- tioned in the two preceding sections, shall forthwith post in some public place in the town or plantation assessed, an attested copy of such assessment and warrant, and shall make no distress for any of such taxes until after thirty days therefrom ; and any person paying his tax to such sheriff within that time, shall pay five per cent. ~~osted ce 8baU be over anc ^ above his tax for sheriff's fees, and no more ; but those who do not pay within that time shall be dis- trained or arrested by such officer, as by collectors ; and the sheriff may require aid for the purpose, and the same fees shall be paid for travel and service of the sheriff, as in other cases of distress. Proceedings, SECT. 238. When an officer appointed to collect taken b0dy assessments by virtue of a warrant, for want of prop- erty arrests any person and commits him to jail, he shall give an attested copy of his warrant to the jailer, and certify, under his hand, the sum that he is to pay as his tax and the costs of arresting and committing, and that for want of goods and chattels whereon to make distress, he has arrested him ; and such copy and certificate are REPORT OF TAX COMMISSION. 163 a sufficient warrant to require the jailer to receive and rights and 11 i priviii _ keep such person in custody^ until he pays nis tax, party arrested, charges, and thirty-three cents for the copy of the war- rant ; but he shall have the rights and privileges, men- tioned in section one hundred and sixty-four. SECT. 2:')',). When a person, committed for non-pay- when dw- .... charged from ment of taxes due to the state or county, is discharged arrest, town liable for state by virtue of any statute for the relief of poor prisoners and county J taxes. confined in jail for taxes, the town whose assessors issued the warrant by which he was committed shall pay the whole tax required of it SECT. 240. When a person imprisoned for not pa} T - collector liable ing his tax, is discharged, the officer committing him he^mmlt? 88 shall not be discharged from such tax without a vote of wlthin ;l ?***' the town, unless he imprisoned him within one year after the taxes were committed to him to collect. SECT. 241. For commitments for non-payment of r e es for 2 om- taxes, the officer shall have the same fees as for levying m executions, but his travel shall be computed only from his dwelling-house to the place of commitment. SECT. 242. In addition to the other provisions for Municipal the collection of taxes legally assessed, the mayor and re^'JiJ'foJ treasurer of any city, the selectmen of any town, and l lnled agahUS" the assessors of any plantation to which a tax is due, a y delinquent, may in writing direct an action of debt to be commenced in the name of such city or of the inhabitants of such town or plantation, against the party liable ; but no such defendant is liable for any costs of suit, unless it _ provieo . appears by the declaration and by proof, that payment of said tax had been duly demanded before said suit. ' SECT. 243 In all suits to collect a tax on real estate, Ia 8uits to col . if it appears that at the date of the list on which such tax was made the record title to the real estate listed was in the defendant, he shall not deny his title thereto ; provided, however, if any owner of real estate who has thereu >- conveyed the same shall forthwith file a copy of the _ prov i so . description as given in his deed, with the date thereof and the name and residence of his grantee, in the reg- istry of deeds where such deed should be recorded, he shall be free from any liability under this act. When "^jf^jfg such suits are commenced within eighteen mouths from Hen on land. 164 REPORT OF TAX COMMISSION. the date of the list, after such notice to the owners as the court shall order, the judgment recovered against the defendant therein shall be a lien on the land relating back to the date of the list and continuing for thirty days after rendition of judgment, to be enforced on execution in any of the methods now provided by law. Duties of Town Treasurers, when Appointed Collectors of Taxes. Towns may ap SECT. 244. The inhabitants of a town may in March point treasurer collector, his annually appoint their treasurer a collector of taxes ; assistants to give .. , . . . bend. and he may then appoint under him such number or assistants as are necessary, who shall give bond for the faithful discharge of their duties in such sum and with such sureties, as the municipal officers approve ; and he shall have such powers as are vested in collectors chos- en for that purpose Abatement for SECT. 245. At any meeting, when it votes to raise voluntary pay- mem of taxes, a tax, a town may agree on the abatement to be made to those who voluntarily pay their taxes to the collec- tor or treasurer at certain periods, and the times within which they are so entitled ; and a notification of such votes, and the time when such taxes must be paid to notice shall be obtain the abatement, shall be posted by the treasurer in one or more public places in his town, within seven days after such commitment ; and all who so pa} 7 their abatement not taxes are entitled to such abatement; but no person to exceed ten per cent, of tax. shall receive an abatement of more than ten per cent, of his tax ; and all taxes not so paid shall be collected by the collector or his deputy, under the other provis- ions of this chapter. Assessors to SECT. 246. The assessors of any town which at its deposit assess- . ,, ,.,.., mentwith annual meeting regulates the collection or its taxes agreeably to the two preceding sections, shall assess the same in due form, and deposit them in the hands of the treasurer for collection, with their warrant for that pur- pose, after he and his deputies are qualified. Treasurers' SECT 247. All the powers granted in this chapter to KTclSiou 6 treasurers, who are appointed collectors of taxes, are is completed. extenc jed until the collection of any tax committed to REPORT OF TAX COMMISSION. 165 them has been completed, notwithstanding the year for which they were appointed has elapsed. SECT. 21*. The municipal officers of towns shall re- Treasurcrto quire the treasurer thereof to give bond, with sufficient ^ ivol(0 " d - sureties, for faithful performance of the duties of his office, and if he negl cts or refuses, it shall be deemed a refusal to accept the office, and the town shall pro- ceed to a new choice, as in case of vacancy. SECT. 241). Every treasurer shall render an account TO render ac- of the finances of his town, and exhibit all books and Sn^omh". accounts pertaining to his office, to the municipal offic- ers thereof, or to any c unmittee appointed by it to ex- amine said accounts, when required ; and such officers shall examine such treasurer's accounts as often as once in three months. SECT. 250. The treasurer of any town who is also a Treasurer of , . town who is collector, may issue his warrant to the snerirr of any coiiectoi county or to his deputy, or to a constable of his town, directing him to distrain the person ov property of any t: person delinquent in paying his taxes, after the expira- tion of the time fixed for payment by vote of the town ; torm of war- which warrant shall be of the same tenor as that pre- rant% scribed to be issued by municipal officers or assessors to collectors, with the appropriate changes, returnable to -when retum- the treasurer in thirty, sixty or ninety days. SECT. 251. AVhen such treasurer thinks that there is May distrain danger of losing by delay a tax assessed on any indi- due, to prevent vidual, he may distrain his person or property before the expiration of the time fixed by vote of the town. SECT. 252. Before such officer serves any such war- Ten day?' notice rant, he shall deliver to the delinquent, or leave at his ing. last and usual place of abode, a summons from said collector and treasurer, stating the amount of tax due, and that it must be paid within ten days from the time of leaving such summons, with twenty cents for the f^eso?officer officer for leaving the same ; and if not so paid, the **, e as collec - officer shall serve such warrant the same as collectors of taxes may do. and shall receive the same fees as for levying executions in personal actions. 166 REPORT OF TAX COMMISSION. Affidavit of person posting notices of land sales, evidence. Owners of estate taken for default of oth- ers, may re cover its value. value not determined by sale. Warrants re- turnable in three months, and may be re- newed. sheriff may execute alias warrant. Special Provisions. SECT. 253. The affidavit of any disinterested person as to posting notifications required for the sale of any land to be sold by the sheriff or his deputy, constable or collector, in the execution of his office, may be used in evidence in any trial to prove the fact of notice ; if such affidavit, made on one of the original advertise- ments, or on a copy of it, is filed in the registry of the county or district where the land lies, within six months. SECT. 254 When the estate of an inhabitant of a town or parish, who is not an assessor thereof, is levied upon and taken as mentioned in section one hundred and eleven, he may maintain an action against such town or parish, and recover the full value of the estate so levied on, with interest at the rate of twenty per cent, from the time it was taken, with costs ; and such value may be proved by any other legal evidence, as well as by the result of the sale under such levy. SECT. 255. All warrants lawfully issued by a state or county treasurer, shall be made returnable in three months, and may be renewed for the collection of what appears due upon them when returned, including expenses incurred in attempting to collect them ; and the power and duty of the sheriff shall be the same in executing such alias or pluries warrant, as if it were the original. Lien on lands created by tax. Enforced Collection of Taxes on Real Estate. SECT. 256. For all taxes legally assessed on real estate and on equitable interests assessed under section three, a lien is created which may be enforced by attach- ment in suit authorized as provided in sections two how enforced nun ^ rec ^ anc ^ eight and two hundred and ten or two hundred and forty-two to be made within two years land may be f rom date of the original commitment, or by sale in the manner and within the time hereinafter provided. sold. REPORT OF TAX COMMISSION. 1 6T Collectors' Notice of Sale. SI-XT. 257. If any such tax remains unpaid for nine Proceeding in months from the date of the commitment the collector may give notice thereof, and of his intention to sell so much of such real estate or interest as is necessary for notices, how the payment of said tax and all the charges, by posting ** notices thereof in the same manner and at the same places that warrants for town meetings are therein required to be posted, six weeks before the day of sale, designating _ w hat notice the name of the owner, if known, the right, lot, and must contain - range, the number of acres as nearly as may be, the amount of tax due, and such other short description taken from the inventory as is necessary to render its identification certain and plain, with the valuation thereof, and shall cause said notice to be published in _ notice must * be some newspaper, if any, published in the county where such real estate lies, three weeks successively ; such publication to begin six weeks before the day of sale ; if no newspaper is published in said county, said notice shall be published in like manner in the state paper ; or in state he shall in the notices and advertisements so posted and published, state the name of the town, and if within three years it has changed, for the whole or a part of the territory, both the present and former name shall further par- - ' ticulars to be be stated, and that if the taxes, interest and charges stated in the notices. are not paid within eighteen months from the date of commitment, so much of the estate as is sufficient to pay the amount due therefor, with interest and charges, will be sold without further notice, at public auction, at a place, day and hour therein named, after the expira- tion of the eighteen months and not exceeding twenty months from the date of commitment. The date of commitment, the name of the collector, and notice that nine months have elapsed since the date of the commit- ment of said tax to the collector, shall be stated in the advertisement. Said collector shall lodge with the town _ copy of notice clerk a copy of such notice, with his certificate thereon Jown clerk's that he has given notice of the intended sale as required by law. Such copy and certificate shall be recorded by cate- said clerk and the record so made shall be open to the inspection of all persons interested. The clerk shall 168 REPORT OF TAX COMMISSION. furnish to any person desiring it an attested copy of such record, on receiving payment or tender of payment notice of sales o f a reasonable sum therefor; but notices of sales of of land in vil- lages for cor- real estate within any village corporation for unpaid poration taxes. J taxes of said corporation may be given by notices thereof posted in the same manner and at the same places as warrants for corporation meetings and by publication as aforesaid. Form of col- lector's notice. Form. SECT. 258. The notice and advertisement of the col- lector shall be in substance as follows : "Unpaid taxes on lands of resident and non-resident owners, situated in the town of , in the County of , in the year (N. B.) The name of the town was formerly (to be stated in case of change of name, as mentioned in section 257). "The following list of taxes on real estate of resident and non-resident own- ers in the town of , for the year , committed to me for collection for said town, on the day of , 18 , more than nine months since, remain unpaid ; and no- tice is hereby^ given that if said taxes, interest and charges are not paid within eighteen months from the date of commitment of said bills, so much of the real estate taxed as is sufficient to pay the amount due therefor, including interest and charges, will be sold at public auction at , in said town, on the day of , 18 , at o'clock M." (N. B. Here follows the list, a short descrip- tion of each parcel taken from the inventory to be in- serted in an additional column.) C. D., Collector of Taxes, of the town of RKPOKT OF TAX COMMISSION. 169 Special Notices to Owners. SECT. 'J59. After the land is so advertised, and at Owner of adrer- , .. tised lands to lc least tfii davs before the da/ of sale, the collector shall notitieiUpei-iai- . , , , , /? /? l v bv the col- notify the owner if resident, or occupant thereof, if any, lector. of the time and place of sale by delivering to him in person, or leaving at his last and usual place of abode, a copy of such notice signed by him, stating the time and place of sale and the amount of taxes due. In of non-resident owners of unoccupied lands notice ^jyjjjjjjjji 1 * shall be sent by mail to the last and usual address, if mail- known to the collector, ten days before the day of sale. SECT. 260. When no person appears to discharge proceeding at the taxes duly assessed on any real estate so advertised, sa with costs of advertising, on or before the time of sale, the collector shall proceed to sell at public auction to the highest bidder so much of such real estate or interest as is necessary to pay the tax due, with five dollars for _ C ost*spect- advertising and selling it, and twenty -five cents more he ' for each copy required to be lodged with the town clerk, and sixty-seven cents for the deed thereof, and certifi- cate of acknowledgment. If the bidding is for less _biddin may than the whole, it shall be for a fractional part of the J^o/Sp 110 "* 1 estate, and the bidder who will pay the sum clue for the delinquent land, least fractional part shall be the purchaser. If more than one right, lot or parcel of land is so advertised and sold, said charge of five dollars shall be divided fees divided equally among the several rights, lots or parcels adver- when more than i " one lot is sold. tised and sold at any one time ; and the collector shall receive in addition, fifty cents on each parcel of real estate so advertised and sold, when more than one parcel is advertised and sold. Collector's Return of Sale. 'SECT. 261. The collector making any sale of real collector's -estate for non-payment of taxes, shall, within thirty days after such sale make a return, with a particular statement of his doings in making such sale, to the clerk of his town ; who shall record it in the town -clerk must re- , , . , ./.i T T cord the return. records ; and said return, or it lost or destroyed, an attested copy of the record thereof, shall be evidence record, or, if of the facts therein set forth in all cases where such (Collector is not personally interested. 170 REPORT OF TAX COMMISSION. Form. Form of collect. SECT. 262. The collector's return to the town clerk shall be in substance as follows : "Pursuant to law I caused the taxes assessed on the real estate described herein, situated in the town of , for the year , to be adver- tised according to law by posting notices as required by law and by advertising in the three weeks successively the first publication being on the day of and at least six weeks before the day of sale ; I also, at least ten days before the day of sale, notified the owners or occupants of said lands, and addressed to the non-resident owners of unoccupied lands whose addresses were known to me, notice of the time and place of said sale in the manner provided by law ; and afterwards on the day of , 18 , at , in said , at o'clock, M., being the time and place of sale, I pro- ceeded to sell according to the tenor of the advertise- ment, the estates upon which the taxes so assessed remained unpaid ; and in the schedule following is set forth each parcel of the estate so offered for sale, the amount of taxes, and the name of the purchaser ; and I have made and executed deeds of the several parcels- to the several persons entitled thereto, and placed them, on file in the town treasurer's office, to be disposed of as the law requires. SCHEDULE NO. 1. Name of Description Amount of tax. Quantity : Xam^ of owner. of property, interest and charges. sold.' pinvhasei In witness of all which I have hereunto subscribed my name, this day of , 18 . C. D.. Collector of taxes of the town of ." For his fidelity in discharging the duties herein required,, the town is responsible, and has a remedy on his bond in case of default. He may, if necessary to complete the sale, adjourn the auction from day to day. REPORT OF TAX COMMISSION. 171 Collector's Certificate. SECT. 263. When real estate is so sold for taxes, the collector shall, within four days after the day of onin- it sale, lodo-e with the treasurer of his town a certificate must be lodged in treasurer's under oath designating: the quantity of land sold, the office with the deed of land names of the owners of each parcel, and the names of sold. the purchasers ; what part of the amount of each was tax, and what was cost and charges ; also a deed con- taining a description of each parcel sold, running to the purchasers . SECT. 264. The treasurer shall not deliver the deeds Deed not to be .... ~ , delivered until to the grantees but put them on tile in nis otnce, to be oue year after. delivered at the expiration of one year from the day of sale, in case the owner does not within that time redeem his estate from the sale, by payment of the taxes, interest at the rate aforesaid to the time of redemption, and costs as above provided, with sixty-seven cents for the deed and certificate of acknowledgment. If the deed is recorded within twenty-five months after the dee?. n day of sale, no intervening attachment or conveyance shall affect the title. Redemption Within Two Years SECT. 265. Any person, to whom the right by law Proprietor may .... . redeem within belongs, may, at any time within two years alter such two years. certificate is lodged with the town treasurer, redeem any real estate or interest of resident or non-resident proprietors sold for taxes, on paying into the town treasury for the purchaser, the full amount so certified to be due, both taxes and costs, including the sum allowed for the deeds, with interest on the whole at the rate of twenty per cent, a year from the date of said money to be certificate, which shall be received and held by said treasurer L treasurer as the property of the purchaser aforesaid ; chafer. 3 ( and the treasurer shall pay it to said purchaser, his heirs, or assigns, on demand ; and if not paid when demanded, the purchaser may recover it in any court of competent jurisdiction, with costs and interest at the ate of twenty per cent, after such demand. The sureties of the treasurer shall pay the same on failure 172 REPORT OF TAX COMMISSION. town liable therefor. Deed to be de- livsred to pur- chaser, if not redeemed. penalty, if treasurer re- fuses to deliver deed. of said treasurer. And in default of payment by either, the town or plantation shall pay the same with costs and interest as aforesaid. SECT. 266. If no person having legal authority so to do redeems the same within the time aforesaid by paying the full amount required by this chapter, said treasurer shall deliver to the purchaser the deeds so lodged with him by the collertor ; and if he wilfully refuses to deliver such deed to such purchaser, on demand, after said two years and forfeiture of the land as aforesaid, he forfeits to said purchaser the full value of the property so to be conveyed, to be recovered in an action of debt, with costs and interest as in other cases ; the sureties of said treasurer shall make good the payment here required, in default of payment by the principal ; and on the failure of both, the town is liable. Tax sales must be made within two years after date of original commitment. proviso. Record of notice to be conclusive evi- -dence of it. Treasurer's receipt is evi- dence of re- demption. Within What Time Sales Must be Made. SECT. 267. No sale of real estate for non-payment of taxes under this chapter shall be made by any officer to whom a warrant for their collection has been com- mitted after two years from the date of the original commitment of such taxes, provided that this section shall not be construed to apply to sales on executions, on attachments to enforce tax liens. SECT. 268. The copy of the notice of sale and the certificates thereon, deposited with the town clerk, as required in section one hundred and ninety-three, or if they are lost or destroyed, an attested transcript of the town clerk's record thereof ; shall be conclusive evi- dence that such notice was given as is required by this chapter in the trial of all issues, in which the collector who made the sale is not personally interested. SECT 26U. The treasurer's receipt or certificate of payment of a sufficient sum to redeem any lands taxed as aforesaid, shall be legal evidence of such payment and redemption. REPORT OF TAX COMMISSION. 173- Additional Provisions. SECT. -270. The municipal Officers may employ one Kstatl . , imy be >f their own number, or some other person, to attend bl the sale for taxes of any real estate, in which their town is interested, and bid ttierefor a sum sufficient to pay the amount due and charges, in behalf of the town, and the deed shall be made to it. SECT. 271. In all cases where real estate has been owner may re- sold for state, county or town taxes, the owner may, reSfredto'be* within the time allowed by law, pay the sums necessary ent?ticd Per to redeem the same, into the treasury of the state, county or town to which the tax is to be paid, and such payment seasonably made shall redeem the estate. The treasurer shall pay the amount so received by him to the person entitled thereto according to the records and documents in his office. SECT. 272. In the trial of any action at law or in validity of sale- equity involving the validity of any sale of real estate for non-payment of taxes effected since March three, eighteen hundred and seventy-four, it shall be sufficient for the party claiming under it, in the first instance, to produce in evidence the collector's or treasurer's deed, duly executed and recorded, and then he shall be enti- tled to judgment in his favor unless the party contest- ing such sale, or the person under whom he claims, shall have deposited with the clerk of the court in which such action is pending, before the beginning of his said action or defence the amount of all such taxes, inteiest and costs accruing under such sale, and of all taxes paid after such sale, and interest thereon, to be paid out by order of court to the party legally and eq- uitably entitled thereto, and then he may be admitted l to prosecute or defend ; but if the other party then pro- char g es are paid J into court. duces in addition to the deed as aforesaid the assess- ments signed by the assessors and their warrant to the collector, and proves that such collector or treasurer complied with the requirements of law in advertising when the other party may and selling such real estate, he shall have judgment in have judgment. his favor ; and in all such actions involving the validity of sales made after this act takes effect, the collector's 174 REPORT OF TAX COMMISSION. return to the town clerk, the town clerk's record, or if lost or destroyed, said clerk's attested copy of such fact8 e uiic|ed c f record as provided in section two hundred and sixty- one, shall be conclusive evidence of all facts there- in alleged. SECT. 273. The foregoing section shall not be con- strued to relieve any collector from liability for damages occasioned to any party by his negligence or misfeasance as such collector. in suits to col- SECT. 274. In all suits to collect a tax on real estate, if record estate, if it appears that at the date of the list on which be in a 5efen r y virtue of them, and so far as they apply to any office, trust, jtuLcial pro- ceeding, right, contract, limitation or event already affected by them. The repeal of the acts aforesaid does not revive any of the acts repealed by them. APPENDIX APPENDIX. 183 335 325 S ^ < t- ^ : -* n i || < a D j 6 Ctf H X0005OX SIX O t-.n.c^soxcocix "i 00!0 OiSO-^<35 Ci gjg^S^SSS^SS^^S^SS S * ? X 5 ^ X ft" M" cTe^x" 05* i 05.ftO-*^IX^ CO t OX O5CM -*"CO OC!O * 00 s IS aoccoo cr. -* t- O t- ^" x>(wso-* -^ < oo oo t xioio?^cf5 r5oo: nocisx^ t-ccicx^eooroc < t-so^xacsoxcct^t^ccso^tft > i^ i _ - s8 ^s- 2 u 1.111 ._ 1*3 o-S K a 35 o it SO C<1 rt i-~ CO SO eo m x x 01 ^5 I o to : -3 **.* s 2 H irso 3.5 2 >, ?> '~ S S H 0,0 e ^ S I -*** o Sl|i:25 I g I E 5 s s .2^5 a 184 REPORT OF TAX COMMISSION. Table II The Following Table Shows the Debt (funded and un- funded} of each State, the Amount Raised by Taxation, for State Purposes, and the State Tax on One Hundred Dollars. Taken from Spofford's American Almanac. State. Date of statement. Amt of state debt X c3 V "S 3 a < State tax on $100. Alabama Oct. 1 1888 $ 9 489 500 $ 1,468,72' .55 Arkansas Oct. 1 188H 4,861,1 In 425,000 .40 California ... July 1 1887 2,698,000 4,455,383 .56 Colorado ... .... Dec. 1 1888 586,318 .40 Connecticut Delaware Jan. 1 1888 Dec VI 1887 3,740,600 46o,000 437,157 117,458 .12 Florida Jan. 1 1888 1,275,000 367,197 40 Georgia Oct. 1 1888 8 752 305 ] 372 tjo.i 35 Illinois Oct. 1 1888 3 004 95 1 44 Indiana Iowa. . Nov. 1 1888 July 1 18& 6,470,608 245 4i5 1,270,000 2 593 095 12 .25 Kansas . ... .... July 1 1888 1 161 776 1 210 931 .41 Kentucky . . . Louisiana July 1 1888 Jan. 1 1888 674,000 11 982 621 3,572,434 1 566 120 .47 1-2 .60 Maine Jan. J 1888 3,959 000 1,021,021 .27 1-2 Maryland . Oct. 1 1887 10 960 53') 910 919 18 3-4 Massachusetts Michigan Jan. 1 188s July 1 188* $1,429,681 239 993 5,321,234 1 950 085 .11 1-2 15 4-10 Minnesota Aug. 1 1887 3 965 000 642 883 .15 Mississippi . Missouri Jan. 1 18^8 Jan. 1 1889 2,935/258 9,525 000 831,124 2 839,523 .35 40 Nebraska ... Nevada Nov. 1 1888 Jan. 5 1888 449,267 380 000 2,287,093 236 305 % New lUmpsliire New Jt-r-io> June 1 1887 Nov 1 1887 2,966,363 1 396 300 400,000 2 743 754 .13 8-10 25 4-10 New 1'ork . .. Sept 1 1889 6 652 160 12 577 353 35 52-100 North Carolina Dec 1 1888 14 540 145 515 674 30 Ohio Nov Li 1888 3416 465 4 9*3 ^74 29 Oregon. Jan 1 188 1 J 315 000 40 Pennsylvania Dec. 1 1888 14 S52 589 6 495 704 30 Rhode Island Jan 1 1888 1 341 000 394 237 12 South Carolina Nov. 1 1887 7 411 021 766 878 52 1-2 Tennessee Jan 1 188(5 17 000 000 954 903 30 Texas Aug 31 1887 4 237 730 2 027 518 25 Vermont Virginia West Virginia Aug. 1 1888 Oct 1 1888 Oct 1 18H8 135,500 31,863,043 457,658 1,783,702 766 205 .12 .40 2ft Wisconsin Oct. 1 188* - 868,453 ,15 1-10 APPENDIX. 185 Table III Savings Bank Statistics. * 2 M a _. i a 1 jS jj z B *! > 73 * 00 9 a o T3 9 1 2 -o 73 h t* * i -3 s s * *" cfl I 9 T3 Q ? 0) tft. 3 11 il o a} s>- 3 9 a 3 iC a ii Si ^ 11 a H < M 2J .5 # -^ N W 1874 $ 96,799 $3 1,05 1,963 $3 20 $686,087 $7,853,258 1875 101,326 32,083,314 316 893,589 8,666,484 - 5.9 + 1876 90,621 27,888,764 306 998,749 8,156,544 15,950 5.2 + 1877 88,661 26,898,432 30.1 1,018,049 7,496,441 15,892 4.1 + 1878 77,978 23,173,112 297 976,044 6,231,695 13,46* 4.2 + $1,054,275 1879 75,444 23,052,663 27 f 993,937 5,383,617 5,950 4.3 + 1,451,099 1880 80,947 2 ) ,3 45 ,988 287 1,114,473 5,239,463 14,895 4.4 1,347,068 4881 87,977 28,361,401 301 1,199,463 4,984,511 27,118 4.3 + 1,542,087 i 1882 95,489 31,430,636 309 1,408,307 5,180,472 18,887 4.2 + 1,076,449 1883 101,822 33,516,729 308 1,535,108 5,216,629 20,840 4.2 + 1,180,279 1884 105,680 35,101,644 311 1.583,537 5,438,608 20,788 4.16 1,200,405 1885 109,398 37,364,394 321 1,708,111 5,645,969 22,827 4.05+ 1,292,402 1886 114,691 39,475,138 344 1,900,238 6,113,414 23,743 4.09+ 1,428,363 1887 119,229 41,283,614 346 2,120,065 6,352,794 23,826 4. 1,515,530 1888 124,562 43,786,168 357 2,303,575 6,407,247 25,269 4.14 + 1 1889 132,192 43,977,085 332 2,533,126 6,680,055 - 4.14 1,805,229 *The report of Bank Examiner Bolster for 1878, the last which gives data of the kind in an aggregate form, shows that there were in 1877 seventy-four depositors whose balances averaged over 8,000. 186 REPORT OF TAX COMMISSION. I I 6 I I I ,,,,,, s - , , "i) i I i 1 I I 8. I I I I I i I i i I | , ** I I i I I i I I I I I I I I I ...!*.-.. ..i ?*. Hill -tii Il.il: ,,, |ff, 1 <2 ft a i 111 i wjo till!! sii E3 < E& ^ 3 J9}JBqo Sajnj 1 )2 g i; S ' S 2 ' O O 1 t/3 iO O 1 1 (M C m -* iX i O 1 1 PH ii i I 1 S s *o 'i J " 1 , 1 i , , i 1 | 6 - w m 1 i s J I 1 1 1 = 1 > "S 9 1 J *^ Q JU 5 -S1U93B oj , *J~ * e* ( S i .Q a, 9!JBOgi1J9Q cd |H gajiij OOO OOOtC r- (M tO r-l r-1 o o m o o o I i a I i <" 1 5 1 1 i , , , 2 . . ' ' 1 ' i 1 s * s "c **" C/J ? "o 1 % J c bJD a S 32 "3 H 1 : : ' : : : ; i : 2 . . 3 i >. s C/2 ill i I|I^ ||= 5 g|^'g < S a. = 1 "a ? sic- 2 * 3 "S) a 2 x 3 i H < H Sn a 1 X f 1 x s o C "3 -r iti i S. ^ S _^ I i i i i i 2 i i i i i i i Q => c 2 I DO ^ { J 1 I i *" i I *" "* 1 *" i^^o * - - _ t -a * | ^* *_1| v^~ | o f s 1 2 -L' ^^ , A i ^> j i . i i 0^-50 .3 1= -'i^' 3J 1 1 s i O | 1 I i j < ^ K 8 * g S. s 3 "" ' * 4 s Bk 3 i _ . . _ . Jl J j-s. : 5. >-. -T '- = - - c - ^ : = | ^ c : H | I : ' : 4 ?.H ll ^ It 'i S"i 1 11 1 ^i i iii ^ 1 1 1 1 1 1 1 ^ i ? J J J --^3 J J INDEX TO SUBJECTS, REPORT. PAGE. American system of taxation 10 Assessors, State board recommended 33 Assessors of taxes, new provisions relating to, proposed 37 Collateral inheritance taxation; constitutionality of; review of decisions 58 Conclusion of Report 86-88 Corporate franchise and organization taxes recommended, and on special acts of legislation 64-67 Dogs, taxation of. Laws of other states 43-45 Equalization. Modes in the several states. Defects of the Maine system 27-32 Exemptions, policy of. Family libraries and furniture 53-54 Insurance companies, tax on gross receipts ; plan for taxation of Mills Mutual Companies 68-70 Income tax law, why not recommend* d 35 Listing and other assessment systems in the different states 15-21 Listing system, results of 22-24 Loan and Building Associations, why no taxation of proposed 82 Mortgaged property, taxation of. Method proposed 46-48 Poll taxes in various states, suggestions of town assessors con- cerning 39-42 Railroads, taxation of. Systems of the various states 71-77 Remedy for unequal taxation discussed. Recommendations of Governors Dingley, Garcelon, Davis, Plaisted, Robie, Bodwell, Burleigh 12-15 Report of commissioners 3 Resolve providing for special tax commission 2 Sales of land for taxes ; discussion of the subject ; changes proposed in the law 85 INDEX. 191 PAGE. State taxation discussed ; new sources proposed I 55-57 Savings banks, taxation of in other states; tax on accumulations of, proposed 77-80 Single tax theory discussed 7 Statistics of valuation deficient in this State 34 Street railroads, why local tax recommended 40 Streets and private corporations 51 Systems of taxation ; origin of Maine system; changes proposed.. 4 Valuation, relative, of real and personal property in the whole country ; inequalities of Maine taxation 11 PKOPOSKD BILL FOR ACT TO PROVIDE FOR THE RAISING OF REVENUE BY TAXATION 89 Poll taxes 89 Property taxes 89 Street railroads 90 Personal property 91 Exemptions 91 Dogs 93 Real estate 95 Mortgages of real estate 95 AVood, bark and timber under contract 97 Personal property, where taxable 97 Assessors' duties 105 Tax payers' oath 107 Town assessors' oath after assessment 109 Report on corporate property 112 State hoard of assessors 114 State taxes 118 State taxation of railroads 119 Taxation of sleeping cars 122 Telegraph companies 123 Telephone companies 124 Express companies 125 Taxation of collateral inheritances 126 Insurance companies 130 Unlicensed insurance companies 131 Domestic life insurance companies 132 "Savings banks and trust companies 133 Taxation of companies when no returns have been made 135 Taxation of corporate franchises 135 Enrolment and organization taxes 136 192 REPORT OF TAX COMMISSION. Other private or special acts of legislature ........................ 137 Taxation of lands in places not incorporated ...................... 13&. Assessment of taxe&Jn incorporated places ........ .............. 145 Applications lor abatements ............ ........................ 146. Assessment of taxes in plantations ............................... 15O Collection of taxes in incorporated places ........................ 151 Duties of town treasurers when appointed collectors of taxes ..... 164 Special provisions ............................................... 166. Enforced collection >f taxes on real estate ........................ 166- Collector's notice of sale ......................................... 167 Collector's notice of sale, form ................................... 16& Special notice to owners ......................................... 169 Collector's return of sale ......................................... 169 Collector's return of sale, form ................................... 1 70 Collector's certificate ............................................ 171 Redemption within two years .................................. 171 BILLS FOR ACTS AMENDATORY OF EXISTING STATUTES. Act to amend sections seventy-nine, eighty-two and eighty-three of chapter three of the Revised Statutes 1 75 Act to amend s< ciions twelve and thirty- two of chapter three of the Revi-ed Statutes 176; Act to amend section seventy-three of chapter forty-nine of the Revised Statures 178. Act to repeal certain aet? consolidated in ""-An Act to Provide for the Raising of K< venue by Taxation*' 17& APPENDIX. Table 1 - Comparative State valuation 183 Table II Showing debts and Sta^e taxation in the, several states.. 184 Table III Savings bank statistics 185 Table IV Showing rate of taxation and amount of license and agents' fees of insurance companies in the several state* 186- 70407 /TvJ - O 9 /<39O UNIVERSITY OF CALIFORNIA LIBRARY