The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1893-10-13
THE DEFICIENCY TAX.

The following from the Aberdeen
News, which is based on official data.
seems to cover the question of the de-
ticiency tax in this state pretty thor
oughly:
Section l, article ii, of the constitu-
ton limits the levy for ordinary pur-
poses to two mills, but at the same time
provides that whenever such ordinary
expenses shall exceed the income of the
state for such year, the legislature shall
provide for levying a tax for the ensu-
ing year, sufficient with other sources
of income to pay the deficiency of. the
preceding together with the esti-
mated expenses of such ensuing year"
The legislature in chapter 20, laws of
1890, created the state board of equaliz-
alton and defined its duties. Paragraph
) of section 3 says: Said board shall
decide upon the rate of the state tax to
be levied for the current year to defray
the ordinary estimated expenses of the
stale for such year, and to pay any de-
ticiency that may remain unpaid OF the
ordinary expenses of the preceding
year, and also upon the rate of state tax
to be levied to pay the annual interest
and to provide for a sinking fund for the
payment of the principal of the public
debt of the state" Section ) provides
that sad board is hereby authorized.
and it is made their duty to levy an an
nual tax upon the valuation. as equal
lied by them, for state purposes, at the
rate determined by them as herein pro-
vided for the purposes herein provided,
and the same shall be transmitted by
the auditor of the state. in the trans
cript of their proceedings, TO each
county auditor or county clerk, to be eN
tended, collected and paid into the state
treasury as provided by law. Such levy
is hereby expressly directed to be
made"
1t is true that the county commission
ers of Lincoln county for time hest
tated to spread the deficiency levy, upon
the plea that the levy was not made by
the legislature. but by the state board.
The board of commissioners were not,
however, unanimous and the plea as to
the illegality is regarded as specious.
When the matter was presented prop
erly they no longer hesitated to extend
the deficiency levy. The legislature at
its session in January does not know
what the assessed valuation of the state
will be, neither does the county know
what the equaliZed valuation will be un-
til after it has been determined.
Whether the legislature has the right
TO delegate this authority to the board
which they have created may perhaps
be disputed by some, but it cannot be
accepted as putting in jeopardy the in
terests of the people. If the deficiency
exists, it must be provided for by levy,
or else when the money in the treasury
is exhausted the state warrants must be
stamped mot paid for want of funds
and the state becomes a great sufferer.
When the levy is made with areason-
able presumption that the tax will be
collected and the money paid in the
treasury, the treasurer is able to oantici-
pate through funding warrants at very
low rates of interest, and in this way
preserve the credit of the state and save
it from excessive interest. 1t was un-
fortunate that additional levy was de-
manded when times are hard. The
board felt this sensibly and discussed it,
but saw no way out of it, and every
thoughtful man in the state who under.
stands the conditions will believe that
the board only did its duty. The legis'
lature at its last session made a de-
ticiency appropriation and there would
be no money to pay itunless deficiency
tax had been levied.