The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-01-11
Governor johnson Sends
Message to Legislature
DISCUSSES MANY SUBJECTS
Taxation Question Very Important;
Would Abolish All PASSES; Fav-
ors Two Cent Fare.

st. Paul, Jan. 9-Governor John.
sons second inaugural message to the
legislature opens with a word OF con.
graduation on our general prosperity
and the condition of the states
finances, but advises prudence and
wisdom in voting appropriations. TAX
Ing up the subject Of taxation he
says:
One of the greatest questions with
which you will be called upon to deal
Is that of solving the problem of pre-
viding, at least In some measure, q
wise and just method Of distributing
the tax burdens Of the people you rep
resent
From the birth of our state govern
ment we have had an unchanged sys-
tenn OF taxation In the form of direct
tax upon real and personal property.
The history of taxation in our state
has taught US that taxes have not been
equal and that the method has not
been efficient. The cause has been
in part the law and in part the appli-
cation.
New Constitutional Amendment.
Up to this time the legislature has
never been able to modify in any ma
terial degree the system of taxation,
which, as We all know, is very largely
one Of direct ad valorem taxation upon
personal and real property At the re-
| cent general election the people of
Minnesota voted to modify the consti-
tuition and adopted an amendment CIV
ing to the legislature wider latitude;
and it now falls to you to justify, in
some small measure at least, the opin-
ion of the people that this action, both
by the legislature and by themselves.
was wise one. The constitution az
amended provides:
| "The power of taxation shall never
be surrendered, suspended or con-
tracted away. Taxes shall be uniform
| upon the same class of subjects and
shall be levied and collected for public
| purposes"
The provision that "taxes shall be
uniform upon the same class of sub
jects" supercedes the former provision
that "all property on which taxes are
to be levied shall have cash valua-
ton and be equalized and uniform
throughout the state''
This amendment places in the hands
OF the state legislature of Minnesota,
for the first time in it's history, the
complete and sole power and RESPONSE
bility of taxation, with no constitu-
tional restriction as regards the
method or system of taxation pro-
vided, save that the taxes shall be
uniform upon the same class of SUBJ
jects and shall be levied and collect
| ed for public purposes.
Taxation Of Mortgages.
Inasmuch as all classes of property
should bear a just proportion of the
taxes for raising the public revenue
| efforts should be made by you to in
crease the taxable property valuations
upon those classes of property which
hitherto have escaped payment of
taxes either entirely or in large meas
ure. One of the difficulties heretofore
experienced has been the failure of
the provision for the taxation of mort
cages and other credits.
1t occurs to me that under the lati-
tude offered by the new constitutional
amendment it will be possible for you
to devise registry and income tax ON
the credit, which will not be a hard
ship to either the loaner or the bor-
rover of money and yet will bring
into the revenues of the state and
counties much larger sum Of money
than is realized under our present
system. would suggest a registry
tax of, say, one-half Of per cent, to
be paid into the treasury of the coun-
ty at the time the mortgage is record
cd, and percentage tax not exceed
ing 10 per cent on the income of the
mortgage, to be paid annually. If the
mortgage ran to nonresident of the
state let the tax go into the county
treasury of the county in which the
mortgage is recorded: II resident of
another county In the state the tax to
be RENTED to that county by the
county treasurer In which the mort
gage is recorded; IL the mortgage is
between parties in the same county
The tax to be paid into that county.
Permanent Tax Commission.
would most urgently recommend
legislation providing for the establish
ment of a permanent tax commission,
which shall be empowered to make .
careful and scientific study of this
question and report from time to time
both to the executive officers and to
the legislature.
The commission should visit the
several counties OF the state annually, ]
or at least biennially, and should bG
empowered to supervise the work o.
local assessors and boards and provids
rules to facilitate the performance !.
the duties of assessors and otherwiS
aid them in the work Of securing equ{N
and uniform assessments. Special
important service can be rendered
the proposed state commission In 81
ing that the tax laws made by this II I.
islature are enforced strictly. u