The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-02-28

ieath OF the owner, as personal prop
srty, bur the same kind Of property
IN the other hand, would pass al
real estate. Part OF this property
would be on the books ons year a.
real estate and the next year nigh,
De on the books as personal prop
1 srty. This Is not material objec
ton, but ought TO be avoided If II
can be and do Justice. &
II has been said above that this
ibill was drawn with, reference tc
coal lsaseholds, and perhaps with
reference to a certain class OF them.
A majority Of the leasehoIds in Fay.
cite and Kanawha counties were ere,
ated some years ago before coal prop.
terty grew to be so Immensely yaIua.
BILE. These lease contracts provide
that the lessor shall pay taxes on the
land and the lessee shall pay taxes on
the improvements. This act Will not
work a hardship upon the person who
makes q lease In the future, because
by the terms OF the contract the ques.
tiop of taxes would be taken care OF.
Neither would It work hardship up.
on persons who have in the past leas.
ed oil and gas, because the question
of taxes Is never mentioned. Neither
would 1t work hardship upon persons
along the Norfolk and Western rail.
road, because the lease contracts In
that section OF the State provide that
the lessee shall pay taxes on the land
and improvements; hence we have
the real purpose OF the bill which
alone is to affect the person who leas.
ed his coal some years ago and pro.
vided in that lease.contract that the
land owner should pay taxes on the
land and the Jesse eshall pay taxes on
the improvements The practical eff
feet of the bill would be this: A owns
one thousand acres Of land and leases
1t to B. The 1ease-contract provides
that shaii pay taxes on the land and
& on tl.a improvements B (the les.
see) develops the one thousand acres
of land He erects buildings, makes
ttncffnes, tramways, drives. entries, in
ifact instells modern, np.to.date coal.
producing plant, which, say, can be
sold in the market for five hundred
thousand dollars Now A Cthe owner
OF the land), say, derives an income
in the way Of royalty OF twenty thous-
and dollars year This amount CAPT.
tafized at ten per cent gives two hun.
dfed thousand dollars, the value Of
the lessons interest Il suggest ten
per cent because the principal is de-
structtbte and wifi be gone when the
coal Is exhaustea) The value Of the
lessons interest is measured alone by
the amount of royalty he derives from
| It II he were TO put It on the mar.
ket for sale, the royalty alone would
determine the sale price The entire
one thousand acres of land, therefore,
including the lessons and lesse's in.
terests, could be sold In the market
for seven hundred. thousand dollars, or
seven hundred dollars an acre. II the
whole plant is worth seven hundred
thousand dollars and the lessons land
Is worth two hundred thousand dol
lars, the leasehold must. therefore, be
worth five thousand dollars We are
to constantly bear in mind that the
lessee is to pay taxes on the improve
ments and the lessor is to pay taxes on
the land Now. the assessor when he
assesses this plant under the proposed
bill will assess 1t at seven hundred
thousand dollars, or seven hundred dol
lars an acre Under our statute you
can only charge separately as i'm
rrovements upon the land, houses, tip
pies, Or structures of like nature The
statute says: Land and the buildings
Or structures erected thereon shall be
assessed separately" Under the late
decision Of the upreme Court Of Ap.
peals In the case OF the State OF West
irginia, e> rel c w Dillon, State tax
commissioner, against Carter and Bare
OF Fayette county, assessors, entries.
tsamways. fncIfnes and improvements
CT that nature are a part of the real
estate itself and cannot be separated
from It, nd. therefore cannot be charg.
ed as improvements under our statute.
Perhaps two tandred and fifty thous-
and dollars. which is the value of the
leasehold, has ben spent in driving
entries. grading and building tram.
ways, grading inelines, etc, and is
part OF the land, and under the deci.
sion of the Supreme Court inseparable
from it. This bill would compel the
landowner to pay taxes upon the value
of driving these entries. building the
tramways, grading the inclines, etc.
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