The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-05-27
CONCERNING THE TAX Law.
THE ATTORNEY GENERALS OPINION.
An Honest Administration OF the Law VIII
Work Hardship to No One-LOcaI
school Levies May in Some In
stances De Dispensed With.

levles IN September, AttOrney-General
Smith has delivered his opinion as fol-
lows:
Section of the new law declares that the
amount necessary and proper to be charged
each poll, based on each 500 worth Of PROP
erty for state expenditure and for school pur-
poses. shall, from time to time, be fixed BY
law; and the amount TO be charged each
poll for county expenditures shall be fixed by
the board OF county commissioners at their
annual meeting in September.
In sec. III county board Of review is Gre
ated which is required to moet for msnt,
review and equalization of the tax on the frss
Monday after the fourth day of July, annually.
By the terms of sec. 254 all cities DE governed
by the provisions of this law wherever applica-
bic, and therein the Office of city assessor and
the city board of equalization are abolished,
and their functions are performed by the
county board of review.
By an early act of this state, boards Of trus.
tees were required TO determine the amount Of
general tax for the current year before the
third Tuesday in May. but by law passed in
1879, city and town clerks were required 70
transcribe from the assessors books in the
county auditors Office, list OF all taxable
property assessed in each city or town. as il ap-
pears to have been equslIzed by the county
board Of equalization, and thereon compute the
tax levied By the city or town authorities.
In the case OF WOrley VS.. Harris ct al. 81
Ind, 49S, the supreme court OF Indiana held
that the requirement oil sec. 3,348, that the
amount of taxes should be determined in in
corporated towns before the third Tuesday OF
May, was by the later statute Of 1879, above re.
ierred to, modified By implication. The court
there ssid:
'By lis aot the time for determining the
amouLs of the general tax for the current year
is extended by necessary implication, so as to
give the officers OF the town a reasonable
time to examine and copy the assessors books
fla ~ II III 1a-nef 1v.u hall
have equalized the assessments. The answer.
therefore, shows that the amount was not void
because the amount was not determined prior
to the third Tuesday in May"
In the case of Kratli VS.. Larrew, ct a., 104
Ind. 363, the foregoing action was reviewed,
and the construction given above was fully ap-
proved Under the provision of sec. los.
township assessors are not required to return
their assessment lists or books to the county
auditors office before the first Monday of
June annually, and the board of review meets
for the purpose OF equalization on the hrst
Monday after the 4th Of July. annually.
1t must necessarily follow that levy cannot
be made for city, town or township purposes
until after such time.
In many instances the work of this board will
be extended for several weeks, which fact was
doubtless taken into consideration when 10 vas
declared that for county purposes the levy
should be fixed by the board OF county com.
missioners in September of each year. In the
absence of any specific direction as 10 the time
when the levy should be made Tor incorporated
cities under sec. 254, the time fixed in sec. I
must govern. For the city of Indianapolis,
however, although not having the law before
me, / am of the impression that the common
council of that municipality is required to TX
its levy at a time not later than October failing
in which the rate fixed for the preceding year
must be adopted.
tits quite clear that the levies for townships
and incorporated towns should not be made IN.
til after the several county boards of review
have completed their work, and sufficient
time thereafter elapsed 70 enable the cOmple-
ton of the proper tax duplicate, taken from
the assessors books in the county auditors
Office, as required by law. To say that difer-
ent rule should prevail, or that the old law OF
1855 upon this subject should govern. would
work a practical ennulmeDt Of the law Of 1879
and those since enacted, requiring q careful
equalization Of assessments and the evident
purpose of the lawmaker in providing that each
levy should be made upon valuations thus re.
viewed and equalized.
The courts, too, would doubtless hold that
the time for fixing a levy should be held as
merely directory and that the act OF making
the levy should be somewhat dependent upon
the performance of other duties required by
the same law. So that if board Of review
should be so delayed IN completing the work
imposed upon them by statute that the levy
fixed should DE somewhat later than that pre-
not be held void.
There has been general impression over the
state that the assessment for 1891 would show
a great increase over those heretofore made.
The law is unchanged and gives no excuse for
the slightest advance over honest valuations OF
former years. An actual cash value is in every
sense fair cash value. and If distorted by tax
officers into a different meaning cannot be
charged TO any change in the law itself. One
of the principal causes for a revision Of the
law arose from public demand Tor fair and
fuller valuation OF corporate property. The
idea has been emphasized in the creation OF the
board of state tax commissioners, and In re.
curing with that distinctness not heretofore
employed that all stocks and other property
held by aggregated capital, including fran.
chises should be assessed at their full value.
Before any levy is made il is contemplated by
the law that the several boards OF review in the
different counties OF the state should vlgilantly
and faithfully inspect the lists returned BY
township and county assessors.
Local tax officers should take care that the
levies for municipal purposes do not exceed
the amount required TO defray the necessary
expenses of their local governments when hon.
estly and economically administered. And any
assessment of the peoples property beyond q
just and honest valuation, or any levy beyond
the needs of the government would be lnequit-
able if not dishonest; and would be in violation
of the spirit and intent of the tax law.
1t should be well borne in mind also, that by
deferring the levies until the several boards OF
review have performed their labors, and the
amount of school fund 20 be apportioned from
the state has been ascertained, the local levy
can be so made as 10 take advantage OF any
possible increase in revenues coming from that
source. Local levies in many instances may
be reduced, and especially so when the sum
usually realized from the state has been ems
HANGED by the readjustment of property values
Indeed. local levies for school purposes may,
in many instances, be entirely dispensed with.
For il the law be honestly administered, many
millions of dollars will be added to the tax
duplicate owing to the assessment OF franchises
and other intangible property OF corporations
which have heretofore entirely escaped tax
alton.
The creation OF the hoard of state tax com.
missioners was almost solely due 10 the demand
for q readjustment of the values upon cor
porate property.
Ny conclusion, therefore. is that no levy
should be made until after the work OF tho
board of review has been so completed a. to be
available in guiding the proper authorities In
fixing an equitable and necessary rate OF tar
alton. The importance Of this delay and the
care which should be exercised in fixing levies
cannot be over estimated.
A Conditional Monument Contract
President Langsdale of the monument