North Iowa times. [volume] (McGregor, Iowa) 1867-current, 1870-02-09
WHOLE No. 695.
Railroad Taxation.

Railroad Taxation.
Hon. Samuel E. Rankin, Treasurer o
State, in his late report makes the follow
ing pertinent suggestions respecting the
taxation of property belonging to rail-
roads:
The tax collected upon the gross re.
ceipts of railroad companies for the years
1867 anc 1868, and including delinquent
tax of 1866, and penalty on delinquent
tax of 1866 and 1867, was sl4l,51l,6l,
one-half Of which was placed to the cred
it of the general revenue, and the remain
ing one-half paid to the several counties
entitled thereto.
l would here suggest that the law fixing
a tax upon railroad companies be 30
amended as to cause the burden of taxa,
ton to rest upon the property of all-up.
on the property of the railroad company,
as upon the property of the farmer, the
mechanic, the manufacturer or the mer-
chant. To show the great inequality un-
der our present law, take, as example, the
tax of 1868: On the 3lst day of Decem-
Der, 1868, there were 1,44S miles of main
track of railroad in the State, the gross
receipts of which, for that year, were 49,.
O4O ,65l ,2l, upon which the tax of one per
cent. was SS0,4O6,5l, the one>half of
which-S4O, ,203, ,26-passed into the gen.
eral revenue, the onc-half being paid tu
the counties entitled thereto.
As this tax of one per cent. on gross
receipts is "in lieu Of all taxes for any
and all purposes on the road bed, track,
rolling stock and necessary buildings for
operating the road" to estimate the roads
including the trolling stock and necessary
buildings at an average valuation of $50.
10000 per mile, would be, perhaps, fully
as low as other property in the State was
valued for assessment, in that year, and
would make total valuation of $2S $780,
10000, which at two and one-half mills
the levy for State tax for 1S6S-would
yield to the State alone for that year, a
revenue of $50, ,4OO, 90, instead of 40, ,2O3,-
25, the amount collected for that year an
der the present law; to this add county,
school, insane, town and city taxes.
which, in counties in which railroads
xroro h,,;lf 80 1QSS ,,o,o ooa 1... 49, -
average Of one and half per cent, max
ing the additional revenue to the counties
of s434, 10000, instead of $40, ,2O3, ,25,
collected under the present law, and max
ing an aggregate revenue for State and
county purposes for that year of $500, $780,.
90, instead of $50, ,4O6,5l, collected under
the present law. Had the property of
railroad companies been valued as other
property, the aggregate valuation would
have been increased, and the rate per cent.
Of tax diminished and the burden of tax.
alton would thus have fallen more equally
upon all. do not wish to be understood
as suggesting, by the foregoing estimate,
that an average valuation should be placed
upon all railroads in the State, and the
taxes levied upon that valuation. Some
have, perhaps cost much more than others;
some may be better constructed than 9TH
ers; some may have better buildings, or
more or better rolling stock than others;
and some, doubtless, are paying their
owners a larger profit than others. l
only desire to call attention to the fact,
that under our present law there is great
disproportion between the tax collected
from the property Of railroad companies
and that collected from the other real and
personal property in the State.
There was time when we were on the
Western border-when beyond US was a
wilderness-when the resources of our
State were almost entirely und.velopea,
and Western railroads were not the pay
ing investment they are now. Then it
was perhaps sound policy on the part of
the State to discriminate in their favor,
but that time is fast passing, if not al.
ready past. Our railroads have become
not only safe, but prof table investments,
and with every year are becoming more
so, and do not now require exemption
from the payment Of fair and equal pro.
portion of the State and County revenue !;
and besides such discrimination disturbs
the public peace and quiet, by causing dis
sension and strife among the people, for
laws discriminating unjustly either in fa-
vor of or against any class Of persons or
property, of necessity creates and fosters
q spirit of antasonism. In all laws rsgu>
lating the assessment of taxes on any
community, due respect should be had to
justice and equality in reference to the
interests or property to be taxed, and no
one kind Of business interest or property
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