Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1895-02-08

(meanlng SectlOn ll9 OF the c~OnStiCutiOn),
relating to assessment of railroad prop.
erty, shall cease to be in force; and
WHEREAS, The question has been raised
as to the power of the legislative assembly
to enact a law for the assessment of rail
roads under a gross earnings system, and
also a law assessing railroads under Sec
ton 179 of the constitution at the same
time; be it
Resolved, That the opinion of the attor.
ney general be and it is hereby asked as to
the constitutional right Of this legislative
assembly to tax railroads under two differ
ent systems, and whether or not this legis-
lative assembly has a constitutional right
to provide by law for the assessment of
railroads under Section 179 of the constitu-
ton, while a law exists taxing railroads on
gross earnings under Section 176 of the
constitution, and what effect the words $50
long as such law providing for the payment
of a percentum on gross earnings shall be
in force, that part of Section 179 of this
article relating to the assessment OF rail.
road property shall cease to be in force"
has Oh Section 179, while a law is in force
under Section 176 of the constitution.
Resolved, That the attorney general be
requested to furnish such opinion at his
earliest convenience. "
The house evidently desires to know
whether or not this legislature can pass
constitutional l.ws taxing railroads un-
der two different systems at the sane
time. This is indeed important, as there
is no way Of compelling the Canadian
Pacific, commonly known as the $780,"
the Chicago, Milwaukee & st. Paul and
the Chicago t. Northwestern to pay a
fair and reasonable tax under a gross
earnings system without compelling the
Great Northern to pay an exorbitant rate,
if the law taxing them must be uniform
and without special provision.
If 1t is constitutional to provide at the
same time separate and different systems
of taxation for railroads, then a law
might be passed requiring the payment
of a sufficient amount of the roads gross
earnings to equal the tax that would be
paid on an assessed valuation of such
sum as the legislative assembly might
determine. For instance if it is consti.
tutional and thought to be for the best
interests OF the state that a gross earn
ings system be perpetuated, the law
might provide for the payment of a per
centum of earnings in lieu of other taxes
with a provision such as this:
"Provided the amount to be paid, as such
per centum of gross earnings, shall equal
or exceed the amount said railroad com
pany would be required to pay, ii said rail-
road was assessed at the rate say of 81, 900
per mile, and the equaliZed rate of taxa,lOn
fixed by the state board of equalization was
extended thereon"
If this can constitutionally be done, it
will enable the legislature to formulate
a system acceptable to the roads, as it
does not interfere with their established
system of bookkeeping, and at the same
time compe!s them to pay a fair, reason
able and proportionately equal tax, as
compared with other classes of property.
The average rate of taxation on all
kinds Of property in the state for the
year 1894 vas 29.8 mills. Let us call it
3 per cent, the rate it is likely to be this
year. If railroad companies paid at this
rate on their roads on a valuation of
$4,000 a mile, they would pay as follows:
Tax ats Der