Crittenden record=press. [volume] (Marion, Ky.) 1907-1909, 1907-09-12
MISSOURI CASE III
LIKE KENTUCkpS
In the Matter of Trouble With
Tax System.
a Tax Commission Has Just Made a
Report That 10 81 Interest
IN This Slate.

actly similar to that OF Kentucky. A
tax commission has been at work in
Missouri and in line with the tax COM
missions Of other progressive states 1t
has found no solution of the difficulties
OF the situation short of a constitu
tional amendment that will give the
legislature greater liberty In dealing
with the question; but II also points
out that such an amendment Is chiefly
desirable because 1t will lead TO sepa-
ration Of the sources OF state revenue
from the sources of county revenue.
The comments of the Missouri tax
commission are so pertinent TO the
situation in Kentucky that the follow
ing extracts will be found of interest:
we all agreed that the first step in
any tax reform is the separation of
the sources Of state and local revenue.
This change would not require the
exemption OF any class OF property
from taxation. The proposed change
may be effected by the adoption of a
single constitutional. amendment.
The general features of this sepa-
ration OF the sources OF state and
local revenues may be briefly sum-
married.. The state would discontinue
the levy Of a general property TAX
upon the real and personal property
of the state, leaving the assessment
and collection of this tax TO the coun-
ties and municipalities for local pur-
poses. This would make a saving OF
the large expense incident TO the
present dual system. II would also
dispense with the work of the State
Board of Equalization connected with
the attempted equalization of assess
ments OF real and personal property
among the counties of the state.
The state would thereafter derive
its revenue through its inherent gen
eral power of taxation upon general
subjects OF taxation, as by licenses.
corporation taxes. inspection fees and
such other forms of taxation as the
general assembly may determine.
THE different rates of assessment in
the different counties, enforced by the
different demands for local revenue,
would no longer produce inequality in
taxation with reference TO the state
tax. The remedy proposed is, in our
opinion, the only effective remedy.
Each community could fix its own
rate OF valuation as fits local needs may
require. without subjecting its citizens
TO the injustice of being compelled to
pay an undue share of state taxation.
There is now certain kind of
home rule In taxation, which consists
in the variation Of the rates OF assess
ment upon property according to the
local needs of the community, some
counties paying taxes on 20 or so per
cent OF the real value of property. and
others only 20 or 30 per cent. The
report OF the Tax Commission of 1908
says II is in the bounds of truth TO say
that no two counties of the state have
the same rule for the assessment of
all classes of property, and generally
speaking, there is absolutely no uni
formity as TO the proportion of the
cash value taken as a basis of the
assessed value. Some counties value
real estate, so far as our reports show,
as low as 30 per cent of its selling
price. while others have 90 per cent
basis. Some assess real estate at 1914
per cent, and tangible personal prop
erty at so per cent The commission
concluded that there was an absolute
want OF equality In taxation.
This inequality can not be RENE
died by the State Board Of Equaliza-
ton, for the obvious reason that the
high rate Of assessment in certain
counties, including the city of St.
Louis, is enforced by the pressing de-
mand for revenue for local require
ments. The board can not raise the
assessments of the counties which
make a low valuation. as that would
be imposing an unnecessary burden
upon those communities.
1--WE see no remedy for this existing
inequality and resulting injustice, ex-
cept in the separation Of the sources
OF state and local revenue.
Under the plan proposed, the state
would retain all of its inherent powers
OF taxation, except as TO the general
property AdR ul'OA iNnA GNU ~ NtAAet
property. which would be assessed
and collected by counties and cities for
local purposes. The state now levies
tax upon insurance companies,
dramshops, express companies, sun
dry corporations, license and inspec-
ton taxes, and a collateral inheritance
tax. What other forms Of taxation
NAV be adopted will be for the Gen
eral Assembly, in its discretion, TO de
termine The system proposed re-
auires no change in the existing limi-
tations upon the tax rates OF the
counties. cities and school districts.
1.-THE change recommended requires
no modification of the methods of as
sessing the property OF railroads and
other public service corporations by
the State Board of Equalization. That
system is statutory and its continu-
ance or modification is subject to the
control OF the General Assembly.
Should the present system be contin-
ued, whereby the assessed valuation