Omaha daily bee., 1902-06-18
LAW FOR TAX COMMISSIONER
City Attorney Cornell Answers Questions
for Mr.. Fleming,
FAVoRs THE HUNDRED PER CENT BASIS
awe Says BELT Line and Bridge
and Terminal Companies Are
within Sole Jurisdiction of
City Tax Department.,

City Attorney Cornell submitted to Tax
Commissioner Fleming yesterday In answer
to the latter's letter Of inquiry as to how he
should proceed with the assessment for
1903, the full text Of which was published
in The Bee of May p.
In his reply City Attorney Cornell says.
In response to your first inquiry as to
whether or not 1t is the duty of the tax
commissioners to comply literally and
strictly with the requirements of law and
assess all property at its fair cash value l
would say that in my opinion, so far as It
Is possible or practicable to do so, the law
at all times should be complied with.
AS heretofore stated to you on several
occasions the provision of the city charter
which requires the tax COMMISSIONS to as
sess and valve all property at it's fair cash
value is plaih and unambiguous and should
as to whether It would be legal in accord
ance with previous custom to adopt a per-
centage of the fair cash value as a basis
or the assessment | am of the opinion that
under the decisions of the supreme court
this could be done. In the recent case of
state eN rel Shriver ct al the law as stated
In the syllabi of the case is as follows;
THE statute requires that all property
NE assessed at its fair value, but this does
not prevent the Board of Equalization
from ~equalizing assessments when property
In general in the city has been assessed at
a certain percentage of it's fair value"
Would Reduce Tax Rate.
The same view is recognized and asserted
IN a somewhat different form in the case
OF Miller against Herford and in Lincoln
Land Company. against Phelps County.
notwithstanding the decisions to which
reference is made, sanctioning a basis of
percentage of the fair cash value, / am
still of the opinion that the plain require
ments of the law should be observed. As
Stunning that all property subject to taxa
ton is valued, as the law requires, at its
fair cash value" no one will be required
10 pay any more tax than If all property
were valued at 40 per cent of its fair cash
value. The increase In the amount of the
assessment would be Offset by a corre-
spending decrease in the number of mills
necessary to be levied. One decided benefit
to be secured by a strict compliance with
the law would be the very great Increase
In the total assessed valuation of Omaha
property and a corresponding decrease in
the rate of taxation, thereby overcoming
slant explanation that the rate of taxation
in Omaha is excessively high.
In response to your second inquiry as to
whether the provision of the charter re-
curing the assessment of railroad prop
erty to be taken from the valuation made
stitutional, l would say that, while doubt
may exist as to the constitutionality of
TINS provision 1t is my opinion that you
that such provision is constitutional.
Let Legislature PrOVid Remedy.
If a compliance with this provision of
the charter results in inequality or in
justice, the remedy should be applied by
one relating to the assessment of all prop
erty at its fair cash value, is clear and
free from ambiguity. The provision of the
charter as contained in Section 9S is as
follows:
The tax commissioner shall take the
valuation and assessment of railroad prop
erty within the city limits from the re-
turns made by the State Board of Equaliza-
ton to the county clerk"
1t may be, as stated by you, that the
State Board of Equalization values prop
erty for taxation at only a small per-
centage of its fair cash value" Assuming
this to be true, 1t is manifest that as the
result of assessing all property in the city,
except railroad property, at its fair cash
value and assessing railroad property at
only a small per cent of its fair cash value
the railroads would escape their Just pro-
portion of taxes for municipal purposes.
This can only be remedied in two ways.
First, by raising the valuation and assess
ment of railroad property by the Board of
Review or Board of Equalization, so that
railroad property would bear the same re-
lation to the standard of valuation
adopted as other property. Second, by
changing the law as 1t now exists. Section
60 of the charter gives to the council power
as a board of equalization to e~qualize all
taxes and assessments. as well as to cor
rect any errors in the listing of valuation
of property, and to supply any omissions
in the same.
Council Nay Raise Railroads.