The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-01-02

Complains in Minneapolis Is Excessively
Because
Wrong This Dodgng Works
To the Editor of The journal.

To the Editor of The Journal.
A Chicago capitalist to whom a
Minneapolis real estate investment |
was submitted recently declined the
proposition with the significant re-
mark, Minneapolis taxes are too
high Practically the same reply was
made by a Minneapolis capitalist
when piece of Nicollet avenue prop
erty was offered to him. Every Min
neapolis real estate dealer can doubt
less cite similar instances which have
come to his personal notice.
This concurrence Of views makes it
evident that a high tax is one of the
conditions which deter people from
investing in Minneapolis real estate.
Such being the case, the all impor-
tant questions before us are, What
causes the high tax on real estate?"
and What are the remedies?"
A given sum of money is required
to meet the running expenses of the
municipality. That sum is raised
principally by taxation; the tax rate
being based upon the proportion Of
the total amount to be raised to the
total assessed valuation. The higher
the valuation the lower the rate.
It is obvious, therefore, that if all
classes of property, real and personal,
were assessed at their full value, the
tax rate might be placed at the low
est possible figure. 1t is equally clear
that if any class of property escapes
| assessment an unjust burden falls
upon that which is properly listed for
taxation.
TWO-Thirds Hidden.
Theoretically, all real and personal
property in Minneapolis is assessed in
| it's proper proportion; but, as mat
! ter of fact, quite two-thirds Of the
| personal property is hidden. or so Sc
| GREETED by it's owners that the assessor
cannot get at it, and the share Of tax
| alton which it should justly carry is
shifted onto real estate. Real estate
is a form Of property which cannot
be hidden from the assessor, but this
cannot be said Of personal property.
Stocks, bonds and mortgages are con-
stantly placed in names other than
I those ~of the actual owners in order
| that taxation may be avoided. Every
| time piece of personal property is
| hidden from the assessor the burden
becomes so much greater on real es-
| tate, for, as has been said before,
real estate cannot hide itself.
We are all familiar with instances
Of avoidance of the personal prop
erty tax. 1t is interesting to inspect
| the personal property returns as
shown in the assessors office. That
| the majority of us are keen to shirk
our duties as taxpayers is shown by
the returned statements, which emu
merate only about one-half of the
actual holdings, while that half is re-
turned at about one-third of its real
value.
Look at the total of any household
1 goods assessment return and compare
it with the amount of fire insurance
carried on the same goods, and the
discrepancy will, ordinarily, be found
- e,{, ,,tI; t.
greatly overinsured or he has mis-
represented his list of personal prop
erty. However, the household goods
item is very small as compared with
the wealth that Is unlisted for taxa
ton in the shape of cash, stocks, bonds
| and franchises, most of which are
held by persons Of financial standing
who can easily afford to pay their
share of taxation, but will not as long
as way Is open to escape the obli-
cation.
Another very large item is that of
stocks of goods carried by jobbers
and large retailers. 1t is believed that
not more than rs per cent of the value
of the average stock of goods is re-
turned for taxation.
Injustice of the System.
The injustice Of the system which
allows the people of wealth to par
TALLY escape taxation, while the peo-
pie Of moderate means must pay on
practically full valuation, scarcely
needs comment at this time, but our
indignation cannot be too often
; aroused, perhaps, over the fact that
such luxuries as diamonds and other
valuable stones, Turkish rugs, fine
Hanson chaperoned the dancing party given b.
the high school sorority Saturday evening
Summit hall
| Mrs. J. d. DuShane and Mrs. Rand chap
eroned a dancing party at Woodruffs hal
Thursday evening, given for Miss Dorothy Du