Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1903-02-14
LICENSE FEE SYSTEM,

In explaining the taxation of railways
qua OF some other corporations that pay
the so-caled license fees, the Tax Commits
sion on page 20 OF its first annual report
SAID; Certain classes OF corporations or
persons engaged in Quasi-public enterprises
are required to contribute to the public
revenues amounts not measured or appor'
tioned by property valuations, but, usually,
~ nxed percentage of the income pro-
uuced from operation of the business en-"
gagged IN. Generally It is In form license
Zee or charge for the privilege or con
Quoting the enterprise. But ordinarily 1t Is
more than a mere charge for a business
privilege or franchise. In most instances
II Is essentially a measure of revenue. inc
Zee or charge being imposed-with siiEn(
tIon.
That the fees collected from the rail
ROADS are something more than n mere
charge for a business privilege appears
pretty plainly from the provisions of the
law. Under present statutes, the rate or
taxation Is graduated according TO the
average amount Of annual gross earnings
per mile of road, viz:
On roads earning $1,000 per mile or over
per cent. of gross earnings;
On roads earning $500 and less than
S6oOo per miie 3h per cent of gross earn
On roads earning $4,000 and less than
ings;
On roads earning $500 and less than
~ per cent. OF gross earnings in excess
OF $500 per mile;
On roads whose gross earnings are less
than $l1OO per mile the tax Is So per mile
GROSS EARNINGS.
The license fee or tax Is BASED upon the
annual gross earnings from operation In
the state, including such earnings from IN
terstate traffic rs are earned within the
state. The gross earnings. from which the
amount of fees Is determined. are ascer-
tanned gtafpmprifE m a
each company under oath Of ar officer, 10
the state Treasurer and to the state tall-
road Commission. The latter officer Is re-
auired TO approve the report made TO the
Treasurer before the license can he issued
authorizing the company to continue It's
business
RAILROADS DO NOT ASSESS THEN.
SELVES.
II is often said generally by those who
wish to uproot the license fee system that
under this system the railroads assess them
selves. The railroads make returns ANIMAL
~ TO the state of their gross earnings ana
the law of the state does the rest. The re-
ports are sworn to, and before q license
can be issued the Commissioner of Rail-
roads must approve the eompany's report.
Thus 1t appears that the reports Of the
railway companies are not anal and con
elusive. it Is not only the privilege but
II is the duty of the Commissioner OF Rail.
roads to review them.
There Is never so thorough q scrutiny OF
tue pIuluaFS taxpayer schedule as lHeAr
Is Of the railway company's statement OF
Its gross earnings, II there were much
or the property which now escapes taxa
tion would he on the tax roll and this will
I've admitted by every candid man.
Railway O1lcinls may not be more honest
than other people, hut they are surrounded
by conditions which not only enable them.
hut which compel them to submit full and
accurate returns. They are obliged to make
many reports to the officials of the different
staIes, 70 national officials and to their own
stockholders. It would be impossible so 10
suggie the figures as TO hide anything dis
honest. Anything CROOKED would inevitably
appear on comparison of these different
reports.
How mary citizens Of Wisconsin Pay 4 per
Cent OF their gross income for taxes9 All tbs
principal railroads pay per cent