The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-17
WHERE PERSONAL PROPERTY Is Nor
TAXED


AS in several other classes Of legisla-
tion and administration the British self
governing colonies in the Pacific have
taken more advanced positions in respect
to taxation than have we of the United
States. The Minnesota tax commission
refers briefly to the systems Of taxation
in vogue there, saying:
The best thought of the country seems to
regard with favor such Il policy, and it may
be that within briefer period than is now
contemplated, wisdom will require the adop-
ton by the people of this state of such a
policy or Of one which shall embody its SAL
lent features. '.-
In the event of the adoption of the
commissions constitutional amendments
or others giving the legislature substan-
TALLY the same latitude of. action the
adoption of the New Zealand or Austria
liam systems will doubtless become
pressing question: Any conceivable de-
parture from the present principle of tax
alton Of all property must tend in part, at
least, toward the systems Of the new
English speaking peoples of the south
seas. A recent consular report supplies
about the New South Wales system and
its workings. The report is made by
Orlando H. Baker, United States consul
at Sydney. Leaving out of consideration
the very large revenue derived by the
state from the sales and leases Of public
lands, the forms of the state revenues are
Gust oms, excise, license, land tax in
TOW
personal property tax. The land tax is
levied On the value of the land as deter
mined by what can be realized by sale. It
yields the state only about tenth of the
total tax revenues. r.- .*.a
Each municipali+- fixes it's own rate of
taxation within certain limits. The tax
is assessed at per cent on nine-tenths
of 1.-The value fixed on unimproved land,
and on the rent which the improvements
should bring. If the property is unoccu-
pied and the owner receives no rent he is
assessed just the same. In Sydney at the
present time the rate is shillings per
pound. which includes lighting Water
and sewerage rates are I'd Q4Ncents) on
each pound. By this method, if the prop
ASAAS Yooo
must pay a tax of $50
We have here then in practice the
theory that personal property should not
be taxed. Mr.. Baker does not find that
it has brought about the taxation millen-
Jun. For instance, the government es-
tablishes the rent a certain house ought
to bring. The owner may search in
may have to rent his house at much
lower rate or leave it empty, but the tax
must be paid, nevertheless. Another in
stance of what Mr.. Baker considers an
injustice is in the land tax. The erection
OF improvements on neighboring property
brings up the tax on lot though the
owner is deriving no more from it than
formerly. The owner of the lot referred
to may be living in a humble cottage on
It, Ills income is no greater than before
and his home is no finer, but his taxes are
greater. But, of course, we have the same
inequality in our present real estate tax.
incomes in New South Wales above
$1,000 are taxed at the rate of "a cents
per dollar Much the same system pre-
Valis IN New Zealand. AS bearing on the
present discussion Of the taxation of
mortgages it is interesting to. note that,
Where mortgage stands against the
land. II cents on each pound, paid as in
terest, is deducted from the tax.
The consuls make no reference to ease
OF collection under the land tax and in
come tax systems as compared with the
personal property tax system, but it may
be taken for granted that there is no such
vexation and irritation under he former
as under the latter system, nor so much
deceit, lying and perjury.