The Hawaiian gazette., 1901-10-15
TAX COURTS
REASONING
Appeals Will Go
to Supreme
Court.
(From Saturdays dailyl

Appeals from the decisions Of the
Court OF Tax Appeals must be filed
within twenty days, and both Assessor
Pratt and the appellants are already
preparing to take a number of cases
to the Supreme Court, to which body
all appeals go, directly.
Some of the rulings made by the TAX
court are unique and altogether un-
usual in court procedure. In the case
of +. s. Cunha whose assessment was
increased, the court in it's ruling in
formed him that he was getting too lit
tie rent for his saloon building. and
that 1t was worth at least $500 per
month. They then proceeded to adjust
the value upon this basis, by multiply
ing the annual rental by eight In
many cases the court used this method
of adjustment-multipli of the
annual rental by eight, as the proper
method to find its value. In many
cases where lands We're leased for long
terms at very low rentals, the property
has trebled and quadrupled in value.
and this difference between the real
value and the value assessed to the
owner. is to be charged against the man
that holds the lease.
In another case the court gave as II
reason for accepting the return made
by the owner that the adjoining prop
erty which was worth more had been
assessed much less. In another case
the court deducted the ground To be
taken for a new street which has been
proposed, but which so far, has not
been taken, and may not he used by
the government for some years to
come.
Altogether forty-hvc decisions We're
rendered, the remainder of the ninety
cases having been compromised. Some
times the court accepted the assessor 5
increase. and in other cases the return
made by the property owner, while
again in other cases, an entirely new
valuation was fixed by the court.
The general outline Of the policy Of
the tax court and a few rccommenda-
,ions is given in the following stat"
ment filed with the findings:
In determining values We have been
guided largely by the values OF ada /
cent property which has been return
ed for taxation has been assessed by
the assessor and the ultimate value
agreed on by both owner and assessor
In cases where there are separate
interests in a property We nave firSt
determined the value of the property
as a whole, and then apportioned such
value among the several interests. W.
found in many cases that owners oi
land subject to valuable leases have
omitted to mention such leases in theii
returns the form of tax return ISSUED
by the tax Office providing no place
for the mention Of such leases, or an,
lncumbrances, and that leaseholder'
have likewise omitted to return theii
Ieasehod interests.
In sucn first mentioned cases we hav,
allowed to returns to be amended by
the mention Of the leases granted
Any other course would have resulted
in wrong. in as much as a person
whose return was merely imperfect II
the omission OF fact To his advantage
would have had to pay taxes tha
should have fallen on his leaScholder
who had failed to make any return al
all.
This course would give To- the gov
ernment all 1t is entitled To, as tn,
assessor has full power to tax at an!
time property that has not been re
turned for taxation.
We would suggest that the form .
tax return issued by the tax office pro
vide a place for setting out incum
brances which the law requires To b
set forth.