Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1891-05-16
Short on Taxes.

The end of the gigantic blunders of the
late departed and only Independent"
Legislature is not yet. Now comes the
chiefest, and one is moved to ask what
next?
The Supreme Court Of this state has
before it probably the most important
matter upon which it was eyer called
upon to pass decision. 1t is one grow
ing out of the working of the revenue
law passed by the last legislature and eff
fects the revenues SO vitality that it
threatens to wipe them out entirely.
Section five of this law states that per-
sonal property to the amount of S25
shall be exempt from taxation. Section
eighteen reads: Provided, however,
that any person, company or corporation
in making up the amount of personal
property required to be listed for him.
self, company or corporations shall be
allowed to deduct from the gross amount
thereof any Indebtedness of himself,
company or corporation if the same be
owned or held within the state"
The latter section evidently restricts
the former and those who have had anv
experience in such matters realize that
its effect will be that very little if any
personal property in the state will be
assessed. This means that the revenues
orsbs state arc las jeopardy.
n. ~
sent out the revenue law with his ia-
structions to assessors this year, the Of
flee was at once besieged with letters
asking for some light on this point. The
states attorney not being able to see any
way around it came all the way to Pierre.
Auditor Taylor did not feel like passing
a decision on such point unadyisedly.
Together they called upon the supreme
court which latter body would not ex-
press an opinion. The matter referred
to Attorney General Dollard that
gentleman expressed it is as his opinion
of the way out of the difficulty that sec.
ton did not mean anything more than
that ones debts should be deducted
from his credits.
When Governor Mellette returned
this week the question being referred to
him he made formal demand upon the
supreme court for decision which will
now settle the difficulty finally and at
once and for all.
The costitution in article eleven, Sec
ton five, six and seven provides that
property of churches and BENEVOLENT So
cieties and personal property not ex,
ceeding 5000 may be exempt from taxa
ton and that all laws contrary shall be
void.
This section eighteen Of the revenue
law is certainly in conflict in its effect
if it is at all interpreted as it reads but
whether it will be SO declared by the
supreme court remains to be seen. 1t
is not in conflict as it appears upon its
face but that it would be so in its work
ings no on can doubt. Debts and credits
mean 100 cents on the dollar but personal
property is seldom assessed for quarter
of its value. If debts may be de.
Quoted from personal property it would
likely leave very little personal property
assessable. AZ
The personal property exemption OF
$25 is all right and law in many state~,
but very different thing from the
sweeping arrangement provided by
section eighteen Of this law. AZ
The outcome Of the supreme courts
decision will be watched with great inter.
est as. If it is, that the law shall be inter
preted and in full force as it reads, II
means that the states revenue is knock
ed almost higher than Gilroy's famous
kite. Meanwhile the assessors of the
state who were to % to work on the
first of this month. cannot make move
until this important point is decided.
Altogether it is a very interesting situa-
ticn. ElectiLg Independent U. S. Sena-
tors may not be such profitable business
for the state after all.-Pierre Capital.
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