6. Default of Payment.

Throughout the decade there is no specific provision for default of payment of railroad taxes. The general revenue laws govern this matter.'

7. Remedies.

There are no specific provisions for remedies previous to Act 23, March 2, 1892, by which the Territorial Board of Equalization was created. Up to that time the general revenue laws alone govern and control in this regard.

§ 6, Act 23, Mar. 2, 1892.

$59, Act 129. Apr. 5, 1896.

Revision of Jan. 1, 1898.

Act 23, 1892, provides that the Territorial Board of Equalization shall notify each of the companies of the value placed upon its property for the year, and that each company shall have ten days after such notice in which to file objections with the secretary of the board. Such objections are to be heard and decided by the board, and not later than July 1st annually the board must finally complete the assessment and forward to the clerk of the county court the statement thereof.

Act 129, 1896, provides that "If the owner of any property owned by the State Board of Equalization is dissatisfied with the assessment made by such board, such owner may at the meeting of the board. under the provision of section 82, between the second Monday in July and the second Monday in August, apply to the board to have the same corrected in any particular, and the board may correct and increase or lower the assessment made by it, so as to equalize the same with the assessment of other property in the state. If the board increases or lowers any assessment previously made by it, it must make a statement to the county auditor of the county affected by the change in the assessment of the change made, and he must note such change upon the assessment book of the county, as directed by the board."

Statutes, 1898.

The Revision of January 1, 1898, provides that application to the State § 2563, Revised Board of Equalization to change the assessment must be made by the dissatisfied owner of any property assessed by such board, between the first and third Mondays in June.

C.-THE TAX ON SLEEPING-CAR AND SIMILAR COMPANIES.

At the beginning of the decade and until March 8, 1894, there is no specific provision for the assessment and taxation of sleeping-car and similar car and transportation companies. Until then their property was assessed and taxed like that of individuals. And indeed the succeeding acts are only indirectly applicable to such companies.

Act 126, March 25, 1901, amending section 2610, Revised Statutes, 1898, contains a provision upon the payment of the railroad tax not found in preceding laws. It provides that The secretary of the State Board of Equalization is hereby made the collector of taxes due from car companies. He shall, upon receipt of the apportionment of the property of car companies from the county board of equalization, compute the taxes due from each company, and proceed to collect the taxes from said car companies, and shall furnish each company by mail, postage prepaid, a notice of the amount assessed against it, when and where payable, and that such tax is delinquent on the 15th day of November next thereafter. On or before the first day of December in each year the collector of taxes from car companies shall remit to the state treasurer the taxes collected from car companies due the state, and to each county, city, town, school, or other taxing district the taxes collected from the car companies and due to said taxing district." Amending section 2620, Revised Statutes, 1898, this act adds provisions requiring publication of delinquency in the case of car taxes, by the collector of such taxes, and of notice of lien in case of nonpayment; prescribing conditions under which sale of the property for taxes shall take place, requiring railroads to give such information as the collector shall need, providing that chapter 7 of title 67, Revised Statutes, 1898, relative to the sale, redemption, etc., of property delinquent for taxes shall apply to the sale of property of car companies delinquent for taxes.

Section 2 of this act provides that the annual salary of the collector of taxes due from car companies shall be three hundred dollars.

Act 71, 1894, provides that "The Territorial Board of Equalization shall assess all railroad cars owned by corporations, trust companies, and others, that are used for the transportation of passengers or freight within the territory." There is no specific detail further than this for the assessment and taxation of the cars of such sleeping-car and other companies.

The general revenue laws govern in the details.

Act 129, 1896, provides that "All property and franchises owned by railroad, street-railway, car, railway depot, telegraph, and telephone companies in this state, must be assessed by the State Board of Equalization as hereinafter provided." The provisions concerning the assessment, apportionment, etc., of railroad taxes are thus,made applicable to "car" companies. (For the same, see "Railroad Tax," above.) The Revision of 1898 is to the same general effect as Act 129, 1896, but provides that only such railroad car and other companies operating in more than one county of the state shall be assessed by the State Board of Equalization. Companies operating in but one county are to be assessed in the county in which the property is located.

Act 68, 1899, amends section 2513 of the Revised Statutes of 1898, making the conditions what they were under Act 129, 1896, providing that the State Board of Equalization shall assess the property of all such companies in the state.

VERMONT.

A.-GENERAL CONSIDERATIONS.

I. CONSTITUTIONAL LIMITATIONS.

There are no specific constitutional limitations upon the taxation of railroads in Vermont.

II. GENERAL STATEMENT: SYSTEM AND DEVELOPMENT FROM 1890 TO 1900.

At the beginning of the decade railroads paid a gross-earnings tax to the state at a rate varying according to the earnings per mile of line. Act 3, November 26, 1890, however, provides that the railroad shall be assessed and pay a tax to the state on its property, the assessment to be made by the Commissioner of State Taxes. In lieu of this it is empowered to elect the gross-earnings tax, which now is set at the uniform rate of two and one-half per cent on the gross earnings taxable. Act 6, November 27, 1894, amending section 12, Act 3, 1890, provides that the Commissioner of State Taxes shall appraise the railroad property acquired, constructed, or used for railroad business or purposes, including the corporate franchise. It thus limits the property to be assessed.

Act 3, November 26, 1890, also provides for an annual license tax on corporations organized under the laws of the state, said tax being payable to the state. Act 7, November 28, 1894, provides that this tax shall extend as well to corporations organized under the laws of any foreign state or government and doing business in Vermont. Act 162, 1894, provides that the tax shall continue to be paid until the company surrenders its charter or dissolves its organization and causes a certificate thereof to be filed in the office of the secretary of state.

The specific provisions for the taxation of sleeping-car and similar car and transportation companies at the beginning of the decade are very meager. Act 1, November 28, 1882, provides that "every steamboat, car, or transportation company incorporated under the laws of this state" shall pay a tax to the state, at the rate of

to

two per cent annually on the gross receipts of all their business. Act 3, November 26, 1890, superseding the foregoing law, provides that such companies shall pay the state an annual tax of seven-tenths of one per cent on the value of their "property, business, and corporate franchise," as assessed by the Commissioner of State Taxes, or in lieu thereof two per cent on the entire gross earnings of such corporations, etc. The act also provides for the assessment, payment, etc. The same act also provides for a tax at five per cent on the gross earnings received for business done wholly within the state on "every corporation, joint-stock company, person, or persons owning or operating sleeping, palace, or other cars, for which extra compensation is charged for riding therein, over any of the railroad franchises in this state."

B. THE RAILROAD TAXES.

I. THE ORIGINAL GROSS EARNINGS, AND THE RESULTING ALTERNATIVE GROSS
EARNINGS AND PROPERTY TAXES FOR STATE PURPOSES.

1. Nature and Application.

28, 1882.

This tax at the beginning of the decade is distinctly a tax on gross earnings, it $11, Act1, Nov. being provided that "Every corporation, person, or persons owning or operating a railroad in this state, whether as owner, lessee, receiver, trustee, or otherwise, shall pay a tax to the state on the entire gross earnings of such railroad, if such railroad is situated wholly within the state." If such railroad is situated partly within and partly without the state, the tax shall be upon such proportion of the entire gross earnings of such railroad as the mileage of trains run in the state bears to the mileage of all trains run on the entire main line of the road for each six months' period.

§§ 12, 14, Act 3, Nov. 26, 1890.

§ 17, ibid.

Act 6, Nov. 27, 1894.

Act 3, 1890, supersedes the above, however, providing for a tax on the appraised value of the property in the state, taking into consideration the corporate franchise. The act does not specify what property, simply using the general term "property," and states that the appraisal as made shall be taken to be "the true value of such railroad, its rights, corporate franchise, and property in this state for the purposes of taxation." This tax is for state purposes, like the gross-earnings tax. But it can not be said that the conditions as they existed at the beginning of the decade are entirely subverted by this law, for, while providing for the property tax, it yet provides for an alternative tax on gross receipts which may be paid to the state in lieu of the property tax.

Act 6, 1894, provides that the appraisal shall be of the "railroad property acquired, constructed, or used for railroad business or purposes, including the corporate franchise." Nothing is said about the property not used in operation of the road, but it is provided that the above appraisal shall be taken to be the true value of such railroad, its rights, corporate franchise, and property in this state, for the purposes of taxation."

66

§ 557, Vermont Statutes, 1894.

28, 1882; § 19. Act

3,

$14. Act 1, Nov. Nov. 26, 1890.

It is provided that when a railroad is operated in the state by a lease or other contract, these taxes shall be paid by the lessee of the railroad or holder of the contract, as the case may be, and the tax is to be charged against and deducted from the payments due or to become due the lessor or company, etc., granting the 564, V. S., contract, unless in the provision of the lease or contract it is stipulated otherwise. The act of 1890 provides that the party who ultimately pays the tax shall be construed to be the party who may accept the provisions of the chapter.

These two taxes are here treated together because, though very different in their operations, they hold the position of logically successive or of alternative taxes, and can not be clearly treated apart.

1894.

§ 3. Act 1, Nov. 28. 1882.

$549, Vermont Statutes, 1894.

$4. Act 1, Nov. 28. 1882.

§ 550, V. S., 1894.

$5, Act 1. Nov. 28.1882,asamend

Nov 25, 1884.

2. Assessment.

It is provided that the Commissioner of State Taxes shall furnish to the principal officer of each corporation, etc., or to each person, etc., required by this act to pay a tax to the state, “blanks in triplicate so formulated as to require a statement of all facts necessary to determine the amount of each annual or semiannual tax to be paid by such corporation, company, person, or persons."

§3. Act 3, Nov. 26, 1890.

§ 11, ibic.

Act 3, 1890, is in substance the same, except that it provides such blanks shall be furnished on request.

And this act makes a detailed provision as to what shall be included in such returns. It includes the entire gross and net earnings, and if any portion of the railroad is without the state, the amount of the gross and net earnings per mile of road; also, the length of the entire main line of road, miles thereof in the state, kind and weight of rail used on main line, kind and number of ties per mile, kind of ballast, number of miles of side and yard track, list of equipment, amount and value of capital stock, funded and floating debt, its bonds secured by mortgage or other securities on the property of such corporation or person, and the market value of its said stock and bonds, and the amount of dividends, interest on indebtedness paid annually or semiannually. If a railroad is leased and operated by the lessee, such return shall also give the amount paid for rents thereof, and any other matter required by the commissioner to carry out the provisions of this chapter. Such returns shall be made, sworn to, and returned whenever required by the commissioner, not exceeding once in two years, and shall conform to the provisions of this chapter." The blanks are to be filled out and all interrogatories therein answered, and are to be signed and sworn to "by the treasurer, cashier, or chief financial officer of the corporation, company, or by the person or persons making the returns."

§ 4, Act 3, Nov. 26, 1890.

Act 3, 1890, provides that the blanks so filled out shall be signed and sworn to "by the cashier, chief financial or other proper officer of the corporation, or if made by an individual or firm, by the person making the return."

Such blanks are to be returned, one copy to the Commissioner of State Taxes and ed by $1 Act 5, one to the state treasurer annually, on or before February 15th "for the year terminating with the last day of December next preceding; or semiannually, on or before the fifteenth day of February, and the fifteenth day of August, for the semiannual period terminating with the last day of December or June next preceding, respectively, according to the subsequent provisions of this act; and one copy shall be retained by the corporation, company, person, or persons making such returns."

§ 551, V. S., 1894.

§ 563, ibid.

$5. Act 3, Nov.

26, 1890.

§ 18, ibid.

Act 3, 1890, provides for the same distribution of the returns, but alters the time of their transmission. It provides that “Such returns shall be made annually, on or before the fifteenth day of September for the year terminating with the last day of June next preceding, or semiannually, on or before the fifteenth day of March and September, for the semiannual period terminating the last day of June or December next preceding, respectively, except as otherwise provided in this chapter."

In case the company elects to pay the gross-earnings tax in lieu of the property tax, it is provided that it shall make returns of the gross earnings of said railroad as provided for making returns in this chapter." It is thus excused from returning the other items.

For failure to make the return as required, it is provided that the company shall forfeit to the state one hundred dollars for each day's neglect. (For the means of recovering such penalty, see "Default of Payment," below.)

ན

Statutes, 1894.

The returns constitute in fact the assessment, that is, the determination of the $553, Vermont amount taxable, under the gross-receipts tax. But under the property tax a further provision becomes necessary.

$12, Act 3, Nov. 26 1890.

§ 1. Act 6, Nov. 27. 1894

Act 3, 1890, provides that "It shall be the duty of the Commissioner of State Taxes to appraise the property, and in so doing he shall take into consideration the corporate franchise of each corporation, company, person, or persons owning or operating a railroad in this state, at its fair and just value, as soon as may be after the receipt of the returns aforesaid, not later than the first day of November annually, which said appraisal shall be taken to be the true value of such railroad, its rights, corporate franchise, and property in this state for the purposes of taxation.”

Act 6, 1894, amends the above section to read: "The commissioner § 557, ibid. shall appraise railroad, property acquired, constructed, or used for railroad business or purposes, including the corporate franchise, at its fair and just value. Such appraisal shall be taken to be the true value of such railroad, its rights, corporate franchise, and property in this state, for the purposes of taxation, and shall be made as soon as possible after the returns are received, and not later than the first day of November annually."

1882.

To ascertain the amount assessable, it is provided that in case the railroad is 21,Act, Nov. entirely within the state, it shall pay on its entire gross receipts; if partly within and partly without the state, "upon such proportion of the entire gross earnings of such railroad as the mileage of trains run in this state bears to the mileage of all the trains run on the entire main line of the road.”

Act 3, Nov. 26, 1890.

§ 17, ibid.

§ 13. ibid.

Act 3, 1890, providing for tne alternative gross-receipts and property taxes, provides that in case the company elects to pay the grossreceipts tax, it shall pay on the entire gross earnings, if the railroad $562,V. S., 1894. is situated wholly within the state; if it is situated only partly within the state, it must pay "upon such proportion of the entire gross earnings of such railroad as the mileage of the trains run in this state bears to the mileage of all trains run on the entire main line of such road for each six months' period."

In case the road pays the property tax and the line extends beyond $558, ibid. the limits of the state, "its whole valuation, ascertained as aforesaid, shall be divided by the number of miles of its entire main line, and the amount thus obtained shall be taken to be the value of such railroad per mile, which sum, multiplied by the number of miles in this state, shall be taken to be the true value of such railroad, its rights, corporate franchise, and property in this state for the purposes of taxation."

3. Determination of the Tax.

The statute prescribes the rate of the gross-earnings tax as follows: "At the rate of two per cent on the first two thousand dollars a mile, or total earnings if less than that sum; at the rate of three per cent on the first thousand or part thereof above two thousand dollars a mile; at the rate of four per cent on the first thousand or part thereof above three thousand dollars a mile; and when the earnings exceed four thousand dollars a mile, at the rate of five per cent on all earnings above that sum."

9563-PT V—04 -28

§12, Act 1, Nov 28, 1882.