Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1907-01-10
DECLARES QUESTION OF TAXA
TON OF VAST IMPORTANCE
At PRESENT TIME.
WOULD ABOLISH ALL PASSES
ALSO FAVoRs A TW0.cENT. PAS.
SENGER FARE AND LOWER 10.
FREIGHT RATHe.

st. Paul, Jan. Ex-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 tho greatest questions with
which you will be called upon to deal
Is that OF solving the problem of pro-
xiding, at least in some measure, a
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-
TEN OF taxation In tho form of q direct
tax upon real and personal property
The history of taxation in our state
has taught Us that taxes have not boon
equal and that tho 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 as
amended provides:
THE power of taxation shall never
be surrendered, suspended or con-
tractsd 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 tho former provision
that "all property on which taxes are
to be levied shall have cash valua-
tien 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-
t1onad restriction as regards the
method or system of taxation pro-
vided, save that the taxes shall be
uniform upon the same class of sub
jects and shall be levied and collect
ed for public purposes.
Taxation of Mortgages.
lnasmuch 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-
amendment it will be possible for you
to devise registry and income tax on
the credit, which will not be 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. I would suggest a registry
tax of, say, one-half of / per cent, to
be paid into the treasury of the coun-
" at the time the mortgage is record
ed, 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: if a 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; If the mortgage is
between parties in the same county
the tax to be paid into that county.
Permanent Tax Commission.
I would most urgently recommend
legislation providing for the establish
ment of permanent tax commission,
which shall be empowered to make a
careful and scientific study Of this
question and report from time to time
both to the executive officers and to
the legislature.
sgs The commission should visit the
several counties Of the state annually.
sor ct least biennially, and should be
empowered to supervise the work Of