The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-07
MICHIGAN'S PERMANENT TAX CON-
MIccTOM

The experience the state of Michigan
has had with a permanent tax commits
sion contains many points Of interest to
Minnesota at this time. Legislators and
others will find some valuable suggestions
in an account of the operations of the
tax commission system in al Michigan,
printed on another page Of this paper
What has been accomplished in Mich
igan in two years shows how much can
be done in the way of tax reform merely
by creating a responsible and vigilant
central taxation power. In Minnesota
now, as in Michigan before the commits
sion was created, there is no central
power plant, so to speak, to work the
states tax machinery. 1t is run by sep
arate and more or less inefficient local
motors in about as many governmental
subdivisions as the state has. The pres
ent board of equalization never does any
thing to make the state system Of assess
ment Of taxes uniform or effective. 1t
merely strives to keep the burden of state
others. It really accomplishes nothing
toward equalizing the. burden of taxation
as between individuals or, different classes
of property, or toward securing COM
mon basis of valuation.
The Michigan tax commission was
laws. There was no change in the laws
themselves The commission operated as
a cbracer all along the line for local as
SCISSORS, with the result that vast
amount of property has been added to the
tax rolls, that property which has hereto
escaped taxation has been taxed and the
rate of taxation has been reduced. The
| assessed value Of the real estate has been
raised from 1926, 100000 in 1899 to s1,O2O,-
100000 in 1901. Under the old system,
| with no one to run the machine the
personal property assessment Of Michi-
gan has increased only 100000 in thir-
teen years, but in two years the tax COM
mission raised this assessment from
$142, 900, 900 to 1915 ZOO, 900.
1t is of interest to note that the rate
of taxation has been reduced while the
total valuation has increased-a point
as to the proposed Minnesota law The
average rate of taxation in Michigan has
decreased from $21.16 in 1899 to $16 60
per $1,000 in 1901. The valuation has in
creased somewhat out of proportion to
the decrease in the rate, the former being
SO per cent larger and the latter % per
cent less. It is, of course, too soon to
say whether this disproportion Is to be
permanent or is merely an incident of
taxation in 1901. Even if the valuation
had not been materially increased, the
times being prosperous, the Michigan
municipalities might have spent $4,000, 900
more in 1901 than in 1899. State expenses
proper have decreased. -
remarkable effect of the commissions
work has been the'increase in the valua-
ton of mortgage assessments from six
or eight millions in 1899 to about $50 ,O00,-
900 in 1901. The effect upon interest rates
is not stated, but an advance might
naturally be expected. 81 ~
In view of our: present tax reform ex-
perience in Minnesota, we are inclined
to indorse the view of the Michigan COM
mission that it is better to reform a tax
system piecemeal than to inaugurate
sweeping changes. 1t declares that any
system of taxation will meet with oppo-
sition. That being undoubtedly true, it
would seem reasonable to conclude that
tax reform can be attained with q mini
mum Of friction through permanent tax
commission which, while seeking to get
the best results out of the existing laws.
can initiate changes in the system, in
parts, from time to time.
If the experience of Michigan is a
criterion, Minnesota will benefit greatly
from the present tax agitation if it mere
ly leaves, us with the old laws plus a
permanent tax commission