The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-13
Public Service Corporations and the
New Tax Law.
THREE NOW PAY ABOUT $4,000
Under the Proposed Law Telephone
and Express. Companies VIII
Pay Local Tax.

The three local public service corpora
tons that come under the operation OF
the local tax system, the street railway
company and the Gas and General Elec-
trio companies, will pay taxes this year
at the average Minneapolis rate or near
~ three mills on total valuation OF
600, divided as follows: Street Rall-
way company, $2,46S,925 General El le,
trio, $219 ,575; Gas company, $546,829 The
total tax payments from these three
sources will be close to $4,000. rms Is
about 80 per cent more than was paid last
year.
The representatives of all three com.
panles protested against the increase o.
their assessments by the city assessor anc
city board Of equalization last year, ano
insisted that there was no justice IN IL
But the fact that all Of them are no"
hostile to the new tax code proposed DJ
the state tax commission would seem &c
indicate that they would prefer to con-
tinue to run their chances with the as
SCISSOR and the local board than trust te
the operations of the new system. Ine
natural inference is, therefore, that they
believe that their taxes would be hlghe1
and that they would have to bear larger
proportion Of the public tax burden than
Is now the case. This, OF course, Will De
the result if the new system gives larger
cSSOSSdUAo Vd4udIlOu Ou6A IAAS oo>
taxation Of franchises and higher valua-
ton on all other property, without a
proportionate decrease in the tax rate
City Attorney Fort has not yet STUDIED
the proposed system carefully ana IS not
prepared to give formal opinion, Du1
he inclines to the view that unoer its
operations the three local public service
corporations will pay somewhat heavier
taxes than this year.
Mr.. Forts system in determining the
taxable valuation of these corporations
has been to deduct the value of the real
and personal property from the actual
value of the capital stock and by that de-
termine the assessa BILE value OF such STOCK,
then assess everything according to the
usual so per cent valuation rule. IN
determining the value Of the capital stock
the franchise is necessarily taken into &C
count, and thus, indirectly, the FRANCHISE
is taxed to a greater or less extent.
Under the new system it is the duty or
statement returned by the several COM
panies, and after ascertaining the value OF
the personal property and franchises TO
enter in his assessment book under the
head OF personal property the total
valuation of the personal property, and
under the head franchises, the value OF
the franchise.
line aggregate VIII constitute IAo q"
sessable and assessed valuations OF the
property of each company, exclusive OF
real estate. The real estate, including
equipment of all kinds, will be assessed
the same as all other rea4 estate IN the
city, as is done now In ascertalnlng
the value of any franchise the assessor Is
to add the value of the capital stock and
funded or bonded debt and deduct there
from the value OF the real or persona
property, and the residue is to be used as
the basis to ascertain the value OF the
franchise. g#
The fact that under the new system
telephone, telegraph, sleeping-car and
express companies will be taxed the same
as other corporations, instead of paying
a. gross earnings tax to the state, as
now, and that each community will get its
proportionate share OF the tax, will result
in transferring some Of the burdens OF To-
cal taxation to those companies.