Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1903-02-19
Would Increase Rail-
road taxation
a Million
Provisions Prevent
Loss to State by
Litigation
Madison. Feb Ii.

Dill, for the enactment Of which the
republican party OF Wisconsin is viz
tually pledged by its platform, and for
which the governor argued at length
in his message, was introduced in both
houses of the legislature last
night. 1t was drawn by the state tax
commission after hearing the argu-
ments of the presidents and high Off
Gals of the railroads, carefully study
ing the tax question of Wisconsin and
having considered the recommended
lions of Governor La Toilette. The tax
commission handed it to Chairman
Whitehead of the committee on assess
ment and collection Of taxes yesterday
and after the committee had met and
considered it briefly it was introduced
at the night session.
Million Dollars More.
The bill provides for a complete
change in the method of taxing the
railroads of the state and it is eStimat-
ed that under its operation this class
of property will pay about $1,000
more than it is paying under the Ii
cense fee system. It is expected that
the bill will go through the legis1a-
ture with practically no change, al
though it will he some time before
, it will be passed as the railroads will
hardly be satisfied with the bill which
has come from the tax commission, as
indicated at the hearing last Wednes-
day. There is also said to be no
doubt in the minds Of those familiar
with the bill that if enacted into law
it will surely be contested by the
railroads, and the tax commission, an
ticipating this, has safe-guarded the
law so that if the courts should undo
the work of the legislature the state
would in no way be the loser.
State Cannot Lose.
The bill in one of it's sections reen-
acts the license system so that it shall
apply for two years. The railroads
are to pay into the state during that
time their taxes under the license fee
system. In the meantime the state
tax commission will make it's valua-
ton Of the roads and if after this has
been made it is found that the rail
roads should under the ad Valorem
system pay more to the state than IN
der the license fee system then the
roads must pay the additional amount
If on the other hand it should be de-
! termined that the roads should pay
less under the ad valorem system
than they do under the license fee
system then the state will be com
PEELED to refund the difference to the
roads.
Makes Transition Safe.
! By making this provision the tax
commission has not only safeguarded
the state against any loss Of income
during the period Of transition from
the license fee system to the al
valorem system, but it has also made
it practically impossible for the roads,
in case the courts should declare the
law unconstitutional, to escape the
payment Of taxes, as though no
change were enacted. 1t is believed
that any litigation which may arise
over the passage of the bill will be
concluded at the end Of two years and
the constitutionality Of the law fully
determined.
Assess all Property.
| The bill does not specify the way in
which the tax commission shall arrive
at the value of the roads but it makes
it incumbent upon the commission to
take into consideration everything
which will have a bearing upon the fix
| ing of the value Of the roads. While
no specific rules are laid down the
| board cannot only view the physical
property of the roads but it can also
employ the stock and bond method
| That the board believes that both
methods should be taken into consid-
Grafton is evidenced by two provisions
| in the measure one authorizing the
employment of an expert civil engi-
neer and the other of an expert &C
| countant to aid the commission. The
commission is also given ample au-
thority under the bill to examine
! books, to compel the roads to show
| their books and to examine all neces-
sary witnesses and compel them to
| testify as to all matters pertaining to
the valuation of the property.
| Rate Alike to All.
The board must not only value all
! the property of the railroad companies
| but it must also value all Of the other
property in the state and it must fix
| the rate at which the companies shall
| pay taxes. In fixing this rate it must
| take into consideration not only the
amount necessary for the state gov
eminent but also the amount to be
raised for all school purposes and all
county, municipal or town purposes
except assessments made against prop
erty for special Improvements. The
rate which will be charged the rail
roads will be the average rate charged
upon all of the property Of the state.
Assessment Commission.
E, The bill is entitled to provide fol
| the taxation of railroad companies.