Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1903-01-29
EXEMPT|NG CREDITS
SENSATIONAL FEATURE OF TAX
COMMISSION REPORT.
NEW GROUND TRAVERSED
Ad Valorem Taxation of Railways Pro.
posed, the Commission to Be
State Board Of Assessment-Mr
Haugen Enters Protest on One
Issue,

/ The second biennial report of the
state tax commission was submitted to
The legislature last night, The chap
ter ON the taxation OF creu,,s is the
most sensational because of The adj
Nauced ground taken. After giving a
history of the efforts that have been
made to reach intangible personal
property for taxation and pointing out
the impossIoluty of ever reaching for
Ia assessment any considerable portion
of this class of property, it is contend
ed that 1t is folly TO longer try to per
I Netuate the pretenSe OF taxing it, In
a carefully developed argument the
reasons are given why there never
should have been ANY effort to tax
credits. To cease to tax this kind of
property, it is held, is not to exempt
any property, but rather to abolish the
fiction that it is taxing property. The
argument covers all phases of the sub
ject and is in line with some of the
most advanced economic thought of
the day, Whether public sentiment
has yet reached the point of believing
as the report asserts that the only
/ just and rational solution of the prob
| lem as to taxation of credits it to
cease all attempts to tax them-in
other words, to exempt them from tax
alton" Is not so clear, But whatever
verdict the legislature may pass upon
/ it in the form of a law, it will be con
sidered one of the most important con
! tributions yet made to the literature
of taxation.
After quoting the existing laws
which exempt from assessment not
only the credits held by the banks and
trust and other financial companies
and debts owing by the holders of
such credits, the report says. ut will
! be seen that while the laws of the
state provide for the taxation as prop
erty of virtually every kind of credit
/ known to business transactions, avery
large portion of such credits are not
and would not be assessed if the law
were fully and efficiently enforced"
Tables accompanying the test show
a marked increase in the amount of
credits assessed in 1902 over any pre-
viOus year. or this the report says
The marked increase in the assess
ment Of credits in the last three years
particularly that in 1902, may seem,
at first thought to give some support
/ to the contention that it is practicable
to secure the full assessment of all
credits which under existing laws are
subject to taxation. 1t should be
borne in mind, however that there
were conditions existing in 1902 eX-
tremely favorable to securing a large
/ assessment of credits which cannot
be expected to continue if the effort
to tax credits be kept up. In many
parts Of the state there had been little
or no effort to secure the assessment
/ of credits prior to 1902. In conso-
| quence there was little effort to con
Ceal them from assessing officers. In
many localities mortgages were placed
on record without any attempt to con
Ceal the name or residence of the act
ual owner and In the expectation, from
| part experience, that no attempt
would be made to examine the records
or otherwise discover credits for pur-
poses of taxation. In brief there haa
been little attempt at Concealment or
evasion except in few localities
where previously there had been some
effort to discover taxable credits
Holders of credits were taken un-
aware in 1902 by the systematic and
thorough manner in which credits evil
jenced by public record were ascer,
tanned and assessed in that year. It
can hardly be expected that many win
be again caught mapping, in the near
future at least; and it would seem
fairly safe to conclude that unless
more effective laws are provided for
the discovery AMI listing Of credits
and to prevent concealment and eva
sion, the total assessment of credits
will be less in future than in 1902.
THE amount assessed In 1902 is be
lieved to be but a small portion or at
least not a very large portion Of the
total amount of credits legally subject
to taxation. The manner in which
/ the increase in 1902 was secured, al
ready mentioned, indicates plainly
that such increase was made up al
most wholly Of credits secured by
recorded mortgages Of real estate.
~ 1T is reasonably certain, however
that the total amount Of credits legal
~ 1iable to assessment under present
day business conditions, after deducr
ing bona fde debts owing by the hold
ers thereof, is a large sum and It Is
not doubted that 1t exceeds many
times the seemingly large sum assess
ed in 1902 When It is considered
that the credits Of real estate mort-
cages and others credits the evidences
Of which are a matter Of public record
and the ease with which, TO the pres.
ent time. these credits could be ascer-
tanned AMI listed, in most parts Of the
state. as compared with the much
greater quantity Of unknown and IN,
ascertainabie credits Of other sorts
aboye mentioned, It will be perceived
that the seeming progress made in
1902 does not Of Itself give much as