The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-01-08


~ value and in ownership, and for purposes OF
taahtlon neceSsitasing annual revision IN those
relations. Values OF real estate are subject 10
anuuai TAX the same rs personal properly. ihese
values must attach to and be shown in ccnnec-
uon with different descriptions in order TO give
loire sna Legality to taxation. In no phase OF
uas SUBJECT can see that any good results are
attained by the listing OF real property iii altern
ale years only.
The annual detail assessment list should con-
ssaii, IA my Judgment, definite descriptive pre-
sentiment, particularly 10 class, smount and
ea,as o. ali property real and personal, SUBJECT
RAILROAD TAXATION.
Those sections Of the revenue law relating to
The assessment of railroad property are not free
from ambiguity. and are susceptible to miscon-
struetion. The methods of assessment and
making returns OF such property might be
greatiy sInipiiued. The law provides for the
division OF railroad property into four distinct
classes for listment and taxation.
flfss-All lands occupied or claimed exclu-
sively Tor rieht-of-way with all the tracks and
all the supeFstrncturcS snd suhstrueturcs which
support the same are assessed AS whole, as
real estate, at so much per mile, without sepa
rating fhe same into lands and Improvements.
his class Is deacminafed s'raiiread track the
value to be listed and taxed in the several coun-
ties towns. cities and districts IN proportion to
the length Of main track In each.
Second--The value of all side or second track,
and all turnouts, and all station houses. depots.
machine shops or ether buildings belonging TO
the road, shall be listed lands or lots and
taxed in the county, city, town or district in
which the same may be located. This is also
eisssed as real property.
Third-The movable property belonging to
railroads is held To be personal property ana for
purposes OF taxation IL called rolling stock"
Consisting Of locomotives Of all classes, passen-
ger cars OF all classes. sleeping dining, express,
baggage and platform cars. and all other kinds
OF cars, This property Is To be listed
and taxed In the same manner as the railroad
track, in proportion as the length of the main
track used in county, city, town or district,
bears to the whole length OF the road. etc.
fourth-The fourth class is made 10 consist of
sshe tools machinery. and materials for repairs,
aud all other personal property except rolling
stock. This class is listed and assessed as sepa-
rate personal property OF railroads in the county,
uated
lists or schedules al the various classes and
kinds OF railroad property req uired OF rail
road companies TO be returned to the auditor of
each county in which railroad may be located,
also. similar schedules with additional deseript-
i've data are required to be returned TO the state
auditor.
The property comprised in the first and third
classes as named and denominafed .raiiroad
track aud railroad stock" is TO be assessed
and the amount of value thereof determined by
the state board of equalization.
The second and fourth classes. known as real
and personal property OF railroads, and as dis
road track and rolling stock, are to be as
sessed by the assessor, TO whom the county
auditor is required to deliver copies
to him him by the railroad iisss companies rhsa
This property is treated in all respects as similar
property belonging to individuals.
GROSS EARNINGS TAX LAWS.
In my judgment there Is no system yet
adopted, that have been able 10 discover, that
is so simple, free from complcxity. less expen-
sivs and combining more elements of equality
and justice than the s.cross earnings" principle
in its application to the taxation of eorpora
tons. such railroads, telegraph, telephone,
electric light, insurance, and others of like pub
lie nature. This system needs no extended
gument in its favor. Ii is burdened with no
rfous or yexatious com plications. Ii Is direct
and simple In principle, both in the method of
its levy and collection; and. have before re-
marked, simplicity In these respects is an essen
ual element in any good, effective tax law. Its
practical workings and results in several of our
Eastern states, where the principle is ia
miliar, have fully. demonstrated its wisdom
and expedfency. IL any considerable change Is
made in the present law in respect to the meth
DDS of listing and taxing of property valuations.
would respectfully recommend that the gross
other cor porations mentioned be adopted in lieu
OF the plan now in operation. The present law,
however, in its varied details, with the adop
ton OF several amendments rs herein indicated,
has much TO commend it, and III view OF the
fact that no test of its features in relation to the
assessment OF property and IN some other. re-
speets has yet been made. and the further fact
that the blanks for listing and the assessment of
property for the year 1891 have been partially
prepared and printed, it may be deemed adyisa-
bic TO test the virtues of the present system for
at least one year before incorporating Herewith
a complete gross earnings system for basis in
the taxation OF railroads and other corporations.
INSURANCE TAXATION.
That section of the present revenue law levy
ing per cent. tax on the gross earnings of
insurance companies has been the subject
recently Of much complaint and adverse criti
cism from fire insurance companies.
There has been no complaint submitted to this
office from other than fire insurance companies
of foreign organization
1t is claimed that the law imposes an unequal,
w txrrrr fax t1eA
earnings OF those companies doing business in
this state, when IL Is construed to mean that
per cent; tax Is imposed on the gross premiums
collected: that such construction Is at variance
with the evident intent OF the law, and in con-
Ict with the spirit of other sections OF the same
law, having more particular reference to the
taxation OF property valuations.
In the objections and complaints urged
against this law, there is singular absence of
any intimation or desire, so far as | have been
able to discover for any reduction in the rate of
tax imposed, but the whole burden of the com
plant is made to rest on the principle or policy
of taxing gross premiums instead of net pre-
miums.
II, indeed. il can be demonstrated that this
per cent tax is unequal. onerous and unjust,
as claimed, II is simple matter for the legisia-
ture to change the rate to less and more
equitable figure: bat, in my judgment. based
upon a due consideration of the whole question.
and knowledge of some results of the ''net
earnings system produced in other states, auy
change of the present law to a system of taxing
only the net premiums of insurance companies
would be practically a surrender OF all the vir-
tues and equities of the law, III so far as the
states interests are concerned.
In several OF the objections submitted, much
stress is laid on the alleged inequality of the
tax imposed, in comparison with the taxation ON
property values and to illustrate, it is claimed
that the state could with equal justice and pro-
priety tax the gross earnings OF the merchant.
Such comparisons are wholly uniting and ir-
relevant The two systems OF taxation VIII adj
nit of no comparison except in the results OBJ
tanned The one seeks revenue from standard
la
OF taxation, subjected TO frequent impositions OF
tax for municipal. school and other local pur-
poses, in addition 20 those for state and county,
annually assessed. The other is subjected u an
annual tax only, and that not upon property
values. but upon the income of franchise I'M
der the protection Of state laws, the value OF
which can only be determined by the amount of
money receipts. III virtue OF ITS authority TO
transact business IN the state.
The rate of taxation applied 10 insurance COM
panies is I'm general as about two to three. In
general when railroad, telegraph and other sim
liar corporations are taxed on their gross earn
ings, the rate is about per cent, while on in
suranee companies il is per cent. This is as
surned To be upon the basis OF equitable stand
ards | can see no justifabe reason for any
material reduction OF the rate Of tax now i'm
posed on insurance companies and, in the in
terest OF the state and its resident taxpayers,
feel that IL would be great injustice TO change
the present system of tax on gross incomes
The time for the payment OF this tax should be
changed and the fiscal year period maze appli-
cable thereto, the same as that with respect to
the tax on property values.
SPECIAL FUNDS.
In the interest of economy. in the payment of
as little interest as possible desire to urge the
sdyisability of creating few special funds,
into which moneys in the treasury are ''set
aTartu as possible. | would recommend that
the tide land fund, library fund and the militia
fund lie merged into and become "A part OF the
general fund. and that said special funds, 40
designated, be abolished.
APPga4sEMEST OF SCHOOL LANDS