Omaha daily bee., 1902-12-25
SUGGESTS REFORM
Proposes New Laws and Amendments for
0maha's Financial Transactions.
WOULD PUT THE CITY ON CASH BASIS
Favors S~cavenRer BIu TO Clear Tax
Hardened Real Estate and at
the same Time 90
Bring in Money.

City Treasurer Hennings is among the
hrst OF the municipal officers to make a
definite statement OF the changes required
in the charter to improve local conditions.
Mr.. Hennings, from the experience he has
gained In a close application to the duties
OF his office and from a careful investiga-
tion OF the taxpayers interests, finds
several things for the incoming legislators
to consider. In al interview the city
treasurer points out to the public the
existing conditions and suggests remedies
for what he considers the evils therein.
He says:
Section 100 Of the statutes should be
amended. Under Interpretation by the
supreme court. the treasurer, selling either
at public or private sale, must include all
delinquent taxes. both regular and special,
and the purchaser must pay all Of these
to constitute a valid sale. The legality OF
many Of the special taxes being open to
question, the purchaser at tax sale often
refuses to buy and many OF the lots
against which these specials are assessed
therefore remain unsold.
SIN order to furnish the city with this
necessary revenue the county treasurer
should be allowed to offer the sale Of this
property for the regular taxes only, after
having offered them with the total taxes
standing against them and having received
no bids thereon. and the certificates Of tax
sale delivered to the purchaser should con-
tain a clause that the validity Of all taxes
levied prior to the date Of sale shall not
be questioned by him.
THE city charter should bar any prop
erty owner from contesting the payment
of any special Improvement tax unless
action is brought in court before the ex-
piration of one year from the date Of the
approval OF the ordinance levying the spe-
cial tax for said improvement.
Personal Property Tax.
THE state revenue laws provide. in sec
tion 1879, that taxes levied against personal
property shall be a lien thereon, while the
charter does not make them such. This
should be corrected.
ANY personal taxes remaining unpaid
after four years OF their delinquency should
become outlawed, and it should be man
datory upon the treasurer to use all efforts
to collect them before that time.
That personal taxes can be collected
has been demonstrated by. the city treas
urer, as, during the year 1902, he collected
over 80 per cent Of all such taxes within
four months after their delinquency.
up to the year 1898 the city has out
standing special fund warrants to the
amount of $780, 900, upon which interest at
the rate Of z per cent accumulates in the
sum Of over $1,000 annually.
I'm many instances the special fund war
rants will never be paid out fully by the
funds upon which they are drawn, partly
because taxes we're declared Illegal, and
partly because the city has compromised
the tax upon the property and accepted a
less amount in full satisfaction. Warrants
to about the full amount OF the special
levy having been drawn it naturally fol-
lows that the holder of the last warrants
cannct be satisfied or pxid out Of this
levy. For instance, a certain district hA!
a levy of 81 600 charged as special taxes
against the property therein, and warrants
to the amount Of $500 are drawn thereon
in sums of 500 each. These warrants are
drawing interest, as are also the special
taxes, but after the lapse OF Ave years, or
more, the city compromises with the owner
of the property for, say, so per cent in full
satisfaction Of this tax assessed, which
gives the treasurer $500 with which to pay
the $500 in warrants; necessarily $500 of
this must remain unpaid and draw interest
of $21 annually.
Bond Special Fund Warrants.
THE source for redemption of these
warrants have been destroyed, through
this compromise, without the consent of
the holder of the warrants. the city GER
tainly will be held liable for their redemp-
tion. Had the city the right to bond
these warrants. only about 81 per cent
interest would have to be paid upon these
obligations, as Omaha bonds are now sold
at about that figure, and the floating debt
drawing Z per cent, would be wiped out
for one drawing only about half as much
interest.
besides avoiding expensive litigation,
the credit of the city would thereby be
raised in the money centers. The re-
deemed special warrants could be held by
the treasurer as assets and any money
paid in on them might be put to the credit
of the sinking fund for the interest and
redemption of such obligations.
"In order to bring up a discussion re-
garding the enormous amount Of unpaid
back taxes levied upon Omaha real estate, /
would like to call attention to the follow
ing facts and figures;
"First-on July 81, 1902, the delinquent
regular taxes amounted to 81, 1851 ,124.20, in
terest on same. sS7S, 631.11, or a total of
$2,S 1924, 1853
'Second-All taxes, from 1860 to 1902, are
in force, and each year the delinquent
taxes Of all prior years have been car
ried forward, and in the above amount are
included poll and dog taxes from the year
1890. and a large amount of other uncol-
lectible taxes.
"Third-It is a we'll known fact that a
great deal of the real estate in Omaha is
burdened with more taxes than 1t would
sell for.
"Fourth-Over 80 per cent of all real
estate taxes levied during the years 1865
TO 1899, inclusive, have been collected, ex-
cepting for the years 1896 and 1897.
Ninety-Dny ScavenEer Bill.
9TH remedy which the city treasurer
would offer is that the legislature could
pass a so-called scRvenger tax bill, good
for ninety days from date Of approval,
which would provide:
H-m