10 MASS. EXPERIMENT STATION BULLETIN 448 



One might ask why barn valuation on a per cow basis should show any rela- 

 tionship to herd size. As herd size increases, larger barns are necessary (barring 

 changes in herd management) and total valuation might be expected to .increase. 

 But are larger herds housed in better barns? Are they twice as good; three times 

 as good; from a market value viewpoint? Or does the dairy barn set the standard 

 of value for the entire property? 



VALUATION OF PERSONAL PROPERTY 



The separation of a man's property into categories for purposes of taxation is 

 an intriguing aspect of our community life. The procedure undoubtedly had 

 its origin in the legal fram.ework of society, and its injection into the tax system 

 may scarcely have been noticed. Fairness must have been in the minds of the 

 first elected public officials who faced the task of raising funds for public pur- 

 poses. The State Constitution, Part the First, Article X reads, "Each individual 

 has a right to be protected .... He is obliged to contribute his share to the ex- 

 pense . . . ."^ and Part the Second, Article IV, ". . . . that such assessment may 

 be made with equality . . . ." 



The Massachusetts laws are reasonably specific in defining Real Property and 

 Personal Property. According to Section 3, of Chapter 59, "Real estate for the 

 purpose of taxation shall include all land within the Commonwealth and all 

 buildings and other things erected thereon or affixed thereto."* In addition to 

 the house, barn, sheds, etc., such items as silos and gasoline pumps are separateh 

 valued by some assessors. Thus far, fences eeem to be immune. 



Personal property is less easily disposed of. Section 4 of Chapter 59, reads 

 "Except as provided . . . personal estate shall include: 



"First, goods, chattels, money and effects wherever they are; ships and vessels 

 at home or abroad, except as provided in Section 8 of this chapter and in Section 

 67 of Chapter 63."9 



The list of exceptions is long and diffuse. It reflects many of the difficulties 

 involved in developing a tax system. 



The system should be fair; so in the first instance the goods of all are subject 

 to taxation. But, 



1. There are some members of society who are less able to bear a tax than 

 others so their personal property is exempt. (Sect. 17, p. 89) 



2. There are some members of the community to whom the general public is 

 indebted beyond the ordinary means of payment. At loss as to a satisfactory 

 method of paying its debts, legislators and the public fall back on giving them 

 freedom from certain taxes. (Sect. 22, p. 90) 



3. There is general agreement that production should not be discouraged by 

 burdensome taxation of the means of production. But even more specifically 

 that no undue burden should be placed on the person who earns his living with 

 his hands; originally most of society — farmers, artisans, and fishermen. (Sect. 

 20, p. 90) 



4. There used to be and still is among some people a belief that double or 

 multiple taxation is unjust. Accordingly, some attempt is made to except cer- 

 tain intangibles, the income of which is taxable under other laws. (Sect. 27, p. 93) 



All told, there are thirty-five numbered paragraphs of exemptions. The ones 

 of obvious interest to farmers are paragraphs 20 and 21; paragraph 20 which 



^ General Laws, Tercentenary Revised to include 1943 1943 p. 1. 

 * General Laws. 1943, Chapter 59, Section 3, p. 81. 

 ^ General Laws, 1943. Chapter 59, Section 4, p. 83. 



