Omaha daily bee., 1903-04-12

advanced by E.. ]. Cornish. chairman Of the
park board, that a maximum limit should
be hxed, where the money is 10 be spent
by the body determining its amount. while
only the minimum limit should be fixed
where the money Ia to be spent by a body
which has no control over the tax levy. In
support Of his contention he argues thai
the tendency is irresistible on the part OF
the city council in order to make a showing
Of economy to hold down the appropria-
lions for all departments not directly I'M
der its control and to swell the funds
which Il itself expends, thus making the
former suffer for the beneht Of the latter.
For the bonded debt, the limits are more
elastic. The limit for funding floating in
debtedness is fixed at $500, 900, and the total
limit at an aggregate OF $4,000. 900, but GER
tain exemptions are made which include
almost all the purposes for which bonds
would naturally be issued, such as district
paving bonds, public library building
bonds, renewal bonds. funding bonds,
bonds for the erection Of city hall, fire
engine houses. for the construction Of
bridges, subways and condults, for
park purposes or for the purchase OF APP
preparation Of gas works or electric light
ing plants. The proviso is further added
that no bonds in excess Of 5000, 900 shall
be issued in any one year except these
bonds already specified. The intersection
paving bonds are also limited not to ex-
coed 800, 900 in any one year.
Question of Revenue.
At the time the present charter was
framed the question OF revenue presented
the most intricate problem. The city had
previously been compelled to take as the
basis Of assessment for its tax levy the
valuation fixed upon property within the
city limits by the precinct assessors OF the
county and in the competition between the
various counties In the state to evade their
quotas and to get off lighter In the appor-
tionment Of the state taxes the assessments
had been brought down to ridlculously low
figures. The lower the assessment. Of
course, the higher the tax rate until the
nominal tax rate became so formidable as
to brighten prospective investors, whose APP
prehensions could not be allayed by any
amount of explaining that the assessment
represented only 16 per cent of the true
value. For 1897 the city tax rate had
reached the alarming figure OF 81 mills. To
relieve this serious situation an independ-
ent tax commissioner system was impro-
vised whereby a separate assessment OF
property was to be made, for municipal
taxation only, under the direction of a tax
commissioner responsible for the work of
his deputies and assistants. The aggre-
gate assessment under the new system
jumped at once from $17,415, 94s to $685. 49,
SOB, the latter figures purporting to repre-
sent 33 Ia per cent Of fair cash value. This
percentage was raised again to 40 per cent
and last year to 100 per cent, SC
that the aggregate assessed valuation OF
property subject to municipal taxation fol-
| Nha aArnNA- L. 80 ,Aa1tl kIr a.
excess of 800, 900. 900.
Railroad Tax Evasion.
Along with this change in the method o.
assessment, however, has come another
complication OF vital Importance. Before
the railroads interests. which were al
powerful in the legislature, notwithstand'
ing its overwhelming fusion majorlties
|, would consent to the establishment Of
} separate assessing Jurisdiction as a par
Of the new charter they insisted upon al
| exemption clause requiring the tax com
missioner to take as the assessment of tn,
j railway terminals within the municipa
boundaries the mileage figures fixed by tn,
State Board OF Transportation. The mile
! age figures of the state board were pre-
} sumably arrived at without reference to tn,
: valuable franchises of the railroads AM
with the pretense that all terminal value
} we're distributed over the entire line Il
proportion to the number OF miles of mali
track in each county, city and village. A
D a result the Immense terminal facilities an
, depot grounds, depots, trackage and bridge
D OF the great trunk lines entering Oman
, were returned for assessment for city taxa
q tion at merely nominal sums, while al
: other property assessed locally was raise
to 33 per cent, then to 40 per cent and the
: to 100 per cent OF its full value. This in
= crease OF the city assessment roll Will
r the railroad assessment remained sta
{ tionary worked to decrease the proportio
Of taxes paid by the railroads and to trans
fer the burdens thus evaded upon the shoul
ders Of the individual taxpayers. This dis
crepancy called attention to the furthe
: fact that the pretended distribution {
terminal facilities by the state board was
sham and a farce. Property which rail
> road experts had themselves testified 1
other connections to be worth more tina
$25. 900, 900 was being taxed on an assess
: ment Of less than $500, 900, and that in tn
= face of the constitutional provision this
taxes should be uniform on all propert
within the jurisdiction imposing the sam
To bring the matter s~quarely to An issU
the tar commissioner and the board Of r.
view, in revising the last assessment roll
~ upon leBal ADVICE undertook TO make q
"a original assessment OF the railroad prof.
erty and to include 1t on the city tax rol
~ in place OF the figures certified down /
the state board. AS was expected the raj
90 roads sought the intervention Of the fec
~ eral courts with injunction proceedings
prevent the council from imposing the Il
levy upon their property so assessed, al
: this case is still pending in the court.
the meanwhile, without waiting for the d
cision, the citizens of Omaha have beI
pressing the legislature to eliminate II
Objectionable clause from the charter, a
though, 1t must be admitted, in the face
the powerful railroad lobby that gives lit
encouragement for immediate success.
: Sources of Income.
The city has other revenues besides 4
proceeds Of taxation, but they are OF col
parative insignihcance because the incor
from licenses, hnes and penalties must,
d conform to constitutional mandate,
turned over entirely to the school boa
for the school fund.
For street improvements an elabors
system of taxation by special assessme
has been devised, largely as an outgrow
Of past experience, by which AUDITING pre-
erty enjoying the BENEFITS is assessed !
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