The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-07-12
THE TAX LAW INpoRsEp.

THE TAX LAW INDORsED.
An interesting Endorsement of the
Indiana tax law is the report of the
commission appointed by the last leg
islature of Iowa to revise the tax sys-
tenn of that state. This report, which
has just been made, recommends the re-
forms adopted in Indiana, and especial
ly as to assessment at actual value.
which is indeed the predominant idea of
the whole report AS a preparation for
their work the commission sent out let
ters Of inquiry to the county auditors of
the state asking for information as to
the mode OF assessment of property,
both real and personal. and the percent
age Of true valuation at which property
was appraised in the several counties.
Replies were received from nearly all
the counties, and from these it appeared
that the assessment in the several coun-
ties ranged from II to so per cent. of
true value with the average at
80 per cent. The variations In
the assessment Of personal prop
erty were equally striking. Cattle
for instance were assessed in 1892 at
$10.16 in one county and at s1024 in
another. while there were rates as low
as $3.50 and 1881 Horses rated at sS4.3 So
in one county, and as high as S4O.6S in
another. decline to s13.97 in the atmos-
phere of counties almost adjoining the
one in which they are more valuable.
Mules rated at 1882 and 1888 in some
of the counties are down to s15.O5. and
even $11.34 in others. Sheep, assessed
at s2.02 in one and $3.50 in another, are
put in as low as so cents in two coun-
ties and as low as 90 in another. Sheep
in two adjoining counties are put in at
81 and 80 cents respectively. Swine
rating as high as s3.15 and 1888 in some
counties are worth for taxation only SO,
Sc and So cents in others.
Gross inequalities in the assessment of
corporation stock as between the coun-
ties are perhaps still more apparent.
One county returns s1O5.63O in all of such
stocks. Another, with fewer corporations
and less capital invested in them. re-
turns s430.640 The former had at the
time about dozen banks with a paid
up capital and surplus Of over $4,000, 900
and several loan and trust companies
with about half much capital, besides
building and loan associations, insurance
companies, ETC. In view Of the injus-
tice wrought by those inequalities as
shown by the returns of the several
counties. inequalities entirely unex-
plainable by any consideration based
upon population. natural resources. or
otherwise, a former governor recon-
mended that the state surrender all
taxes of personality to the counties. On
account Of these inequalities and the evil
| dent injustice resulting from them the
commission recommends the adoption of
true valuation in all cases. OF course
reduction Of the levy is to be made pro-
portional to the increase in valuation
In one respect a radical departure has
been made from the ordinary American
system of assessment. The bill reported
makes no provision whatever for de
Quoting Indebtedness from moneys and
credits. One of the points most strongly
urged on the commission was the extern
sion Of the deduction system to real es-
tate mortgages, but after a thorough
consideration of the question they aban-
| doned the deduction system entirely
Every taxpayer pays on the property
held by him without reference to what
he may owe. Notwithstanding the pop
ular demand for mortgage exemption
the committee agreed unanimously that
it would not only be unwise and illogi-
cal, but that it would in fact injure the
parties who desired the change instead
Of benefiting them. There is hardly
room for question that the plan recon-
mended. Of abandoning all deduction, is
more consistent and rational than any
in use in the country. .s5 ss
The commission also considered the
question Of the separation of the sources
OF state and local revenues, and after
long discussion determined to submit al
tentative sections providing for such
separation and not providing. In case
the former is adopted the state will
abandon its general tax altogether and
rely for revenues on the proceeds of a
tax levied on railroads and paid into the
state treasury. This is substantially the
plan submitted to the legislature of 1891,
which was defeated by the active efforts
Of the railroad lobby. Altogether the
work of the commission shows advanced
and careful thought. and the report will
Of American taxation.
SIrEEn CT, IN MI crrrn.