88 MASS. EXPERIMENT STATION BULLETIN 235 



On the other hand, farm property is more widely distributed than other 

 forms of taxable property. Out of the 355 cities and towns of the state, 242 

 have less than 5000 population, and this group is principally rural. Tlierefore 

 the problem of assessing property in two-thirds of the towns of the state is 

 largely a question of the valuation of farm property. In addition, there is 

 farm property in practically every city and large town. 



Taxes Paid by Farmers. 



Taxes are compulsory contributions levied against the property or citizens 

 of a state for the support of government. They should be levied on the tax- 

 payer in accordance with some accepted principle of justice whicii may be 

 either his ability to pay, or the benefits he receives from government. In 

 Massachusetts, taxes are supposedly levied according to the ability to pay. 

 This ability is measured by income in the case of the income tax, and by value 

 of property owned for property taxes. For a few public functions, taxes are 

 levied according to benefits received. Street paving, sewers, sidewalks and 

 public water supply are in this class, but payments for these items are usually 

 called special assessments instead of taxes. 



Most taxes paid by Massachusetts farmers are for the general support of 

 local and state governments and are levied according to ability to pay as 

 measured by the value of property owned. Taxes levied on this basis are 

 called general property taxes because originally they were levied against all 

 kinds of property. With the development of corporation, income and other 

 new taxes, a great deal of property has been exempted from local taxation, so 

 that Massachusetts really has a modified property tax rather than a general 

 property tax. In spite of this change, however, property taxes still make up 

 over 76 per cent of all state and local taxes, including motor registration fees. 



The four types of taxes for which Massachusetts farmers are responsible 

 are as follows: 



1. A poll tax of .$2.00 is levied on every male inhaliitant of the state over 

 20 years of age. 



2. The property tax is the most important tax paid by farmers. Under 

 tills tax all farm and personal property, with certain exemptions, is assessed 

 at its fair cash value as of April 1 each year, in the town where located, and 

 taxed at a uniform amount per thousand dollars of valuation, called a rate. 



3. The state income tax is a tax levied upon income from certain invest- 

 ments, and from business and professions. Farmers pay a tax of ly, per cent 

 on their net incomes over .$2000, with an additional allowance of $500 for a 

 dependent wife or husband and .$250 for each cliild under 18 years of age. 

 Interest and dividends received from investments in other than Massachusetts 

 corporations are taxable at 6 per cent, although there are a number of ex- 

 emptions of little interest to farmers. Income from the farm business is the 

 principal item upon which farmers pay income taxes, but jirobably not over 

 3 per cent of all farmers pay state income taxes. 



4. The Federal income tax must be paid on all incomes of $3500 or more if 

 the taxpayer has a dependent wife or husband, or $1500 if without dependents. 

 There is an additional allowance of $400 for each dependent child. In 1923 

 only 244 farmers who received their entire income from the farm paid Fed- 

 eral income taxes. 



In addition to the taxes mentioned above, a large number of farmers pay 

 a registration fee on automobiles. While this fee is not called a tax, it is a 



