Omaha daily bee., 1902-05-22
WANTS ADVICE on TAXATION
TAI Commissioner Asks City Attorney
Questions Pertaining 10 Assessment.
FORTY PER CENT OR FULL CASH VALUE
Mr.. Fleming Wants "a Know, Also
whether He shall Take Figures
from state Board on Rail-
road Valuations.

dgAhk ut plans IOT the lNNa CITY HEEeeS-
ment and. preliminary to sending his depu-
ties into the field, he has asked City Attor-
ney Connell a few pertinent questions as to
how he shall proceed. He is determined to
avoid. II possible. a repetition OF the tax
muddle Of the last few months. The prin-
cipal point upon which he asks light lie
whether he shall follow the custom Of the
last forty years and assess property at a
percentage OF its fair cash value or whethe:
be shall apply the statutes literally and as
sess II at its full cash value. The questions
are embodied in the following communica-
ton. which was sent to Mr.. Cornell yes
terday:
OMAHA. May 2O.-Hon. w. ]. Cornell,
City Attorney, Omaha: Dear Sir-Now
1902 tax has been closed. l beg TO ask you
for some legal advice in the matter OF the
making Of the assessment for 1908, as fol-
lows:
First-The city charter says that the
tax commissioner shall by himself and his
deputies assess and value At their fair
course, II has been the custom always, in
place OF assessing at the fair cash value.
value as a basis of the assessment. / de-
sire 20 know whether or not this can be
legally done, or whether or not 1t is the
literally and strictly with this requirement
Of the law and assess all property az its
Idlr Casn Nalue.
About Railroad Property.
~Second-The charter provides that ''the
tax commissioner shall take the valua-
made by the State Board Of Equalization
that the state Board of Equalization val.
ues property for taxation at only a small
percentage OF it's fair cash value; If, for
erty within the city at its fair cash value,
and take railroad property from the re-
turns made by the State Board of Equal:
property, in the city will be valued at its
fair cash value, whereas the railroad
fraction of its fair cash value. The con-
stitution provides that taxes shall be
s uniform rEI,b in re tSs t,tt to P T5 : and pT tSp.
provision Of the charter requiring the as
sessment of dailroad property to be taken
Board of Equalization constitutional?
Third-If the provision of the charter
requiring me to take valuations Of rail-
road property from the returns Of the
State Board of Equalization is not const-
t~utional, shall 1 proceed to value railroad
property just as all other property is val
Fourth-If you are in doubt as to
whether or not the provision for tsking
the returns made by the State Board of
Equalization is constitutional. shall l as
sumo that II Is unconstitutionai and go
ment of my own of the railroad property
within the city. 30 that II the railroads
choose hey can test the question of the
constitutionality of this provision. and the
city have the benefit of a tax on the rail-
road property on the same basis as other
finally hold thai this provision is uncon-
Fifth~How shall I assess railroad prop
erty?
Sixth-The charter says that eft is the
tax commissioner duty to assess all
property. real and personal, and all. fran
persons, partnerships. associations and
corporations" In the 1902 assessment 1t
is u~ndopbtedly true hat a great deal OF
assessment roll. This was not due TO any
delinquency in my office, for my deputies
blanks heretofore furnished assessors for
that purpose. VIII You be good enough
to advise me in what way property own
personal property?
Seyenth-Have I. as tax commissioner
P PfSTai f to make alanO disclosure SO S0% 81 his fso money anay
credits and other personal property? If
so. how can l do this?
power and authority 10 compe. the banks
In the city to disclose the names of their
depositors and the amount Of money 70 the
ing the period of assessment If so. what
is the proper procedure to accomplish this?
Nl0L0-1nG Uldnkh III present. use are
those that have been in use for a good
many years, but they seem insufficient for
the purpose of accomplishing a full dis
able property on the assessment roll. ! in
close herewith copies of these blank forms.
WIN you be good enough to make any sug-
would improve these blanks for the pur-
pose of getting a disclosure of property?
revenue law apply to mercantile corpora
wants Quick Answer.
As there is a great amount of work to be
done that is preliminary pertaining 70 the
should be able TO make my plans at once,
and l would consider 1t a great favor and
swer in writing at as early a date as pos
WILLIAM FLEMING.
Tax Commissioner.
Before / started in on the 1902 assess
ment," said Mr.. Fleming. II had several
talks with MT. Cornell on the subject OF
the 40 per cent basis and / gathered from
these interviews tha In his opinion Il was
perfectly legal TO assess property at a per-
centage Of Its fair cash value. / under
stand, however, that In his address before
the supreme courts referee a month ago
he said that his advice TO me was Just the
opposite. / wan now to get his answer
in writing, that ] may file II away and
avoid further Misunderstanding.
81 see there is a case in point now before
the district court at Lincoln. The Lincoln
Gas company has complained hat It's as
sessme is too high in proportion to the
assessment OF railroad property In the city
and the court has remAnded the case to the
Board of Equalization for a new hearing.
There the city tax commissioner assesses
property at its fair cash value, lille the
State Board of Equalization uses a percent
age Of the fair cash value as the basis OF
assessment, and the result is a wide dis
parity in the assessments OF the two classes
Of property. 1t was just this complication
that ! foresaW q year agU, and which caused
me to apply the 40 per cent standard Of as
sessment."
~@uu-aIIER nFF TIT REAlIntEN