The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-04-27

stand, without experience and education
in the subject, that the true valuation
basis is the fairest, and in every way best,
system. AS has been shown heretofore
the actual increase has been about 90 per
cent. instead of over 100 per cent, az it
should have been, and the valuation now
is about 20 per cent. OF true valuation.
But no one could know that this would be
the result, and ali that could be done was
to guess at it. The additional rate was
therefore fixed at cents on 500, at a ven
ture, and the results demonstrate that this
was a remarkably good piece of guess
work.
The total assessment of Indiana for the
current year. as shown by the duplicates,
is 81 ,254, 900, 26S. The total tax levied is
Sl7,5S9, 5606l, Of which the amount
credited to the state, including the
benevolent and reformatory institution
tax, is 20, 439. 1851. Deducting from this
the ordinary delinquency. and adding the
ordinary collected delinquent tax of past
years, we have q probable state revenue
from taxation for the current year of
50. 166, $3.50. The actual receipts for the
last fiscal year were 81 ,096, $780,. and the
probable increase is therefore 81 ,0G9, 49,
%, or nearly 100 per cent. This is a large
increase, but it is about what was ex-
ptGJtQs anu IL 10 NV III SAStoH vi bil6 nCtub
of the state if there is TO be any reduction
of the debt. On the basis of actual ex-
penditurss OF 1891 the annual account of
the state would stand as follows:
Income from taxation. ...-......S 2,166.612 20
Income from other sources-......... 100000 90
Total income... 3 2,566.6i2 80
Net disbursements 1891. 2,520,934 90
D, AZ 90 n
45,b4S ~
OF the disbursements of 1891, 500 355.63
WIS payment of outstanding debt, and
therefore the surplus above current ex-
penses would DO about SIT, 900.
1t has been assumed by opponents OF
the new tax law that this increase OF state
taxes falls on the private property-owners
OF the state. affirm that not one cent Of the
increase Of state tdres taken as tChOie, falls
on private property, but that Il is all borne by
the corporations Of the state. This is a rather
startling proposition, but il can be demon
strated conclusively. The theory of the
committee which brought in the new tax
law was that, If an assessment of corporate
property could be had on the same basis as
other property, the increased revenue
would supply all the needs of the state,
and as the existing revenue from taxation
of railroads WAS about equal to the total
was proposed to give the proceeds of rail-
road taxation to the state in lieu of the
general property tax. When this measure
was defeated the result was that the state
could receive from the taxation OF corpor-
atoms only the same percentage OF taxes
that 1t received from other property, button
fair assassin nt, the same increase of taxes
would occur and the proceeds would 90
into the local treasures, thus permitting
reduction of local taxes on the people
which would compensate for the increase
of state taxation. The result, therefore,
would be the same, though under the
original proposed system il would be
reached directly and under the adopted
system it would be reached indirectly.
Now how did this work out in fact? In
1890 the total valuation was 1857 ga ,3S7
and the total taxes levied. state and local,
were Sl4, 5ll, 1858. The average rate for
the year was therefore, 81 20 on 500. In
1891 the total valuation is 81 ,254, SOC, 26s
and the total taxes levied Sl7, $50, 5G061.
The average rate for the year is 81 40 on
500. The average railroad taxes for the
two years would therefore be as follows:
.4ssessrncnt. Rate. Tdres.
1S91........... $l60 500, SIS 81 40 s225l, 1893 %
1690...-......... 69,762,667 20 l,IS6.s65 60
Total increase state tRxes.......... l,O69,772 23
Excess of state increase over
railroad increase. ................ 4,393 So
This average will not probably hold
good for the reason that the heavy in
crease of railroad assessment in counties
having large percentage OF railroad prop
erty will cause a reduction OF the local
levies in those counties, and therefore
in ha to~a raalivaA Alnyuino
10 per cent, for this probable shrinkage,
we will have left only about $4,000 of
the increase in state taxes collected. TO be
covered by the increase OF the general
property tax on banks, telegraph and tel
ephone companies, express companies,
manufacturing and mining companies,
and all other corporations. The exact
amount of the increase on these cannot
be definitely shown because they are not
classified separately, but it very largely
exceeds this sum. The state board of tax
commissioners increased the assessment
OF corporations other than railroads 81,
993, S6l, and the tax on this at 81. 40 would
be $4l ,9l405. but this is only the increase
above what had already been made by the
local boards which, as is well known, was
very much greater. 1t is clear, therefore,
that the entire burden of the increase of
state taxes tell on the corporations.
1t may be replied that this averaging of
taxes will not hold good with the actual
results in detail. 1t certainly will not in
some cases, and for good reason. Con-
slider the returns given above.
Total taxes assessed in 1S9I-.....$ II $50 $50 81
Total taxes assessed in 1850. 1851, i46 SO
Total inorease...................S 3,02S, Ala 20
Deduct total increase of state
aRaNeEad / 22tl RAJ Il
Increased local tsxes.........S 17e7, $50 90
That accounts for most of the increase.
The new tax law did not contemplate any
increase OF local taxes at all. Its objects
were only to supply necessary state rove
nue. and equalize taxation. But here is
an increase OF local taxes far in excess Of
the increase in state taxes. Why? Either
there has been necessary increase in
local expenses, or local officers have made
higher levies than they ought. They have
done like the indianapolis school board,
which increased its levy from 20 to %
cents. notwithstanding the assessment in
the city had been increased AS per cent.
The blame for this must rest on the local
officers. The law is in nowise RESPONSE
BILE for it, Ii local taxes had been LETT as
they were last year, the total taxes levied
would be 81 ,797, S66.50 less than they are.
Again, there are some counties in which
there is an increase OF taxes because they
were not bearing their just burden under