Omaha daily bee., 1898-12-18
FAULTS OF The REVENUE Law
Weak Spots in the Nebraska Statute and
Probable Remedies Suggested.
AMBIGUITY THE CHIEF DIFFICULTY
rev Measure Should he So Framed ~
20 Clearly Express It's Intent on
All Points-Excmptions
This Might He Made.

SNo'
Nebraska seems to have been framed on
the theory that all men were strictly hon.
est, assuming that on account OF the pa
triotic interest each had in the general well
fare and prosperity Of the community no
individual would shirk a just responsibility
by seeking to evade the payment OF his
proportion Of the public dues. Such a SEN
timent may have been suited to the time
Of our fathers, In the early days OF state
hood, but 1t is not in accord with the ad-
vanced idea entertained by the average tax
payer Of the present time. Men do not pay
taxes In these days because they are in
spired by any moral obligation to do so.
The power which compels them to con-
tribute to the public purse Is strictly q legal
one, and in order that the tax may be col
lected they insist that every provision Of the
law relating to its levy and collection must
be strictly and literally complied with.
Many a business man has endorsed a note
or become surety on some obligation to ac-
eommodate a friend in whom he had conf
dence. The friend fails to meet the pay
ment, and while in many instances payment
by the guarantor might be avoided, yet in
the majority OF cases his default Is made
good because OF a moral obligation between
the signor and the lender; but in the pay
ment of taxes no such obligation obtains.
Only the slightest deviation in the proceed
ings Is necessary to furnish technical
grounds upon which to base an action to
annul the tax. Therefore 1t Is essential
that our revenue system should receive a
thorough revision In order that 1t may be
reconstructed upon a plan which is In har-
mony with the advanced stand which the
taxpayer OF our time has taken. In addi-
tion to what I have already said on this
subject l may be permitted to offer a few
suggestions relative to certain specific
changes which seem to me especially ad-
Visable. In calling attention to these neces-
sary amendments I have endeavored in each
instance to give my reasons therefor, sup
ported as far as possible with extracts drawn
from the actual practice of other states in
similar cases.
Basis I'm Nebraska.
In the present revenue act Of this state
It Is provided that real property shall be
valued at its fair value, estimated at the
price 1t will bring at a voluntary sale, where
public notice has been given and a pay
ment Of one-third cash and the balance Sc
cured by mortgage" At a first glance
this would seem to be a fair basis Of valu-
alton, but in the actual administration Of
the law much contention has arisen and
the construction placed upon this section
varies greatly in different quarters of the
state. The word "fair' in the connection IN
which 1t Is used is susceptible OF various
meanings, and by reason of the great differ
ence in opinion as to the real meaning In
tended. much of the variation in valu-
alton occurs. The intention of the statute
was that each piece of property should be
valued independently Of all others at Its
real value, and at the time this act was
passed no better standard Of value sug-
gested itself than that of a sale under the
terms at which real estate at that time
was ordinarily transferred. But in this, as
in regard to many other sections of this act,
We are now confronted with a condition
which did not exist at the time that the
act was passed. The legislatures OF various
states have endeavored at different times
to set forth more clearly the real intention
OF the statute with reference to the valuing
OF property for taxation; In Missouri this
value is defined as leash price," in Ohio the
usual selling price" leaving 1t to the
Judgment of the assessor as to what meth
DDS will be employed to ascertain these
valuations. In Michigan the assessor Is
directed to assess property at its usual
selling price," and in Wisconsin at the
full value" In both these states the law
directs the assessor to consider the ad-
vantages and disadvantages Of location, &C.
feasibility, quality of soil, deposits and
any other special condition which may
affect the value of the land in ascertaining
It's taxable value. In Iowa it Is directed
that property shall be listed at its actual
value and Of this amount when properly
arrived at, 25 per cent shall be taken for
taxation.
Efforts to Define Value.
In several other states an attempt has
been made to give a more explicit definition
OF the terms value and full cash value"
etc. Among those states whose laws have
come under my observation none seem to
have expressed the intention more clearly
than that Of California. In this statute the
full cash value" Is defined to be "the
amount at which the property would be
taken In payment of a just debt due from a
solvent debtor" which is to say, that 1t Is
q price at which q creditor would accept the
property In lieu Of money had he the option
OF taking either the property or the money.
Such an estimat of value would undoubtedly
be under the average figure esti-
mated as a fair selling price. but II this rule
were applied to all classes Of property nc
extreme variation could occur in the as
SCISSORS estimates as compared with the
probable selling price. Property often sells
for more than Its actual value and in nearly
every instance at which property is taken
at a forced sale 1t sells for less than it is
actually worth, for in such cases it Is usual,
purchased by a Spectator with the express
intention Of p%rofting by a future transfer
1t Is not possible to value all personal prop.
erty upon this basis, but such OF 1t as doe,
not possess a value which may be estimated
In this manner does not possess a value
which ought in my judgment to be accepted
for taxation.
l regard this section as the keynote Of the
whole revenue act and for that reason II
should express Its meaning with the utmos
clearness. In this same connection l would
suggest that we have fallen into a greaI
error as to whose duty it is to determin,
the value Of property for assessment pur.
poses. 1t has come to be the custom Il
such an extent that 1t Is generally believed
TO be the law for taxpayers themselves t
afix the value to such personal property a
least as they return for assessment. Sucl
IA not the intention Of the statute and n,
equitable assessment can be so made. 1t Il
the duty Of the assessor to determine al
values and in doing SO he should apply tn,
same rule In all cases to the end that al
valuations may be equitable. This fact Il
fully set out in the statute at present, bu
thrnuuh a gaparal MISUNDERSTANDING ~ a..