The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-08-09
TAXED LIGHTLY.
Building and Loan Associations
Are Favored.
Many Replies Received By Secretary
Slade to Inquiries Sent Out to Out
side Associations.

MUTUAL DulluluS duu LOdu dSSOCldIlOu
recently wrote to as many of the asso-
Citations in the state as he could get
| the names of, including the twin
| cities, Duluth, Winona, Faribault,
| Owatonna, Fergus Falls, Albert Lea,
| Wells, and number of others, asking
| them how much they were assessed
and taxed. He has received replies
from all, and we print those coming
from building and loan associations
now in existence. Several have gone
cut of business These letters will be
read at the joint meeting of the local
association and county board Aug.
10Th at p. M, and go to show that
the board should be lenient with the
association.
The following are the letters, in full
in most instances, the names of the
associations being omitted for obvious
reasons:
! 'We pay taxes on our inventory of
1926 and on the real estate which we
have acquired, the same as others pay
on their real estate. We do not pay
taxes on the mortgages any more than
other brokers do on the mortgages
placed by them for outside or home
parties. The association can be con-
sidered in the position of broker and
it should not pay taxes on any more
than it's inventory till it acquires real
estate. If the mortgages are taxed and
the owners report their holdings to
the assessor the same property would
be taxed twice."
"In answ ering your letter inform
you that we are not paying tax.
| eyes, we are taxed, but lightly"
"This association is gradually clos
ing up it's business. -
! "The Association whose as
sets are about $500, OO0 pays about $115
per annum. The rule is for the
assessor to charge associations with
all cash on hand, surplus, and Office
furniture less bills and accounts pay
able I do not know that this rule is
being carried out to the letter but it
is generally understood that this is the
basis upon which assessments are
made.
"This association is assessed last
year and this year the sum of $3.50
and our tax was. about $13. 50.'
"Replying to your favor, will say
that we pay personal property tax
upon $12, 500. Our loans on mortgages
amount to some $50, OOO 1t is pretty
hard to say just what such institutions
should be taxed. We have sort of COM
promised the matter at the above nam
ed amount. -
SIN reply to your question, will say
that we have never been assessed or
taxed as an association, as our money
is all loaned on village property in
, this locality, which already pays the
, highest rate of taxation paid by any
property If the association, which
is purely mutual, was assessed as an
association it would be double tax
, alton.
Replying to yours, would say that
- county for the past few years have
assumed that there is some doubt as to
the Justice or law of assessing build
ing associations. The assessor who
was in Office some four or six years
I previous to the present assessor assess
ed ten percent of the assets, assuming
that an assessment once made and paid
would be sufficient to cover any case
which might come up in court later.
He therefore assumed that low as
{, sessment was perhaps the best thing to
make as long as there was question
( as to how the law should be inter-
; the cash only, on hand May list, assum-
! ing that to be the correct theory. 1t
.. is agreed among all of the county Off
! GERS that in this county building asso-
Citations should not be assessed, but as
the law now stands they believe that
they are compelled to make an assess
Q ment, but they make as low an assess
ment as it is possible for them to make
under the circumstances.
d "We have paid taxes only on the
< amount of cash we had on hand May
r LIST each year.
c SIN 1899 and 1900 we were assessed
/. SO, 600, and this year we are assessed
d So, 900. We do business in this county
and all the adjoining counties. The
q - association, which is purely local
d and does no business outside of this
O city, was assessed 50, 500 for 1899 and
K 1900, and this year is assessed S., 900. 4"
"We do not pay any taxes except on
L our real estate -
|. "Only on personal property and cash
q on hand May 1st.
, "We make our assessor a statement
of our assets and liabilities each year,
and he taxes US regular tax on all cash
that we have on hand, and for our