36

INTANGIBLE PERSONAL PROPERTY

In Maryland, as everywhere, is there increasing uneasiness in
taxation matters caused by greater demands on the public treasury,
and this statement is true as regards State government, county
government and for local, town or city government.

The burden on real estate and all tangible property is becoming,
if it has not already become, burdensome, and study everywhere is
directed to new sources of revenue. At such times legislative bodies
are apt to experiment with new methods and theories and legislation
enacted without proper consideration resulting in many mistakes,
as has been done in Maryland and in many other States and
communities.

It is not surprising, therefore, that attention has been directed
to raising revenues from invisible wealth, such as incomes from
bonds, stocks, patents, copyrights and credits—in other words, a
contribution from persons other than things.

Resort has been had to a tax on incomes (other than from real
estate) in some States, and in other communities resort has been
had to a direct assessment, against that thing in the hands of the
holders producing the income. With the notable exception of Wis-
consin, efforts to collect a State income tax have been a failure, and
in those States where the full rate of taxation has been levied on
intangible personal property the result has been just as disastrous.
Justice required a modification of the efforts to levy the full rate,
and in some communities this property has been considered as being
in a class by itself and a tax rate lower than the rate on other
property has been levied.

This is the Maryland method and became effective in 1897 by
the Legislature of 1896, which classified the property and decided
on a rate uniform throughout the State and irrespective of the usual
rate of taxation prevailing at the residence of the holder and lower
than the rate on other property.

Article 81, Section 214, of the Code of Public General Laws pro-
vides that all bonds of corporations and all shares of stock of for-
eign corporations and all certificates of indebtedness held by resi-
dents of Maryland shall pay a tax of 30 cents for local purposes and