The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1907-05-16
more TAX IDEAS
State Senator Howe Talks On Three
General Features.
Nome Rule, ouadrenniai Property
Valuations and Franchise Taxes Are
Subjects He Discusses.

Subjects He Discusses.
IAN address before the Ohio TaS
Commission by Senator Frederick G.
Howe. Hearing March IL, 1907
have not attempted in this argu
ment to take up the subject in all
OF its bearings. have been content
with three general features: The
taxation of those corporations that
enjoy franchises, the question of the
decennial valuation of property, ad
vocating retaliation of real prop.
erty in the state every four years
and local option, or local home rule
. ir taxation.
The taxation of corporations, of
competitive character, seems to me 20
be very adequately cared for in the
Willis bill; but the other class. the
franchise corporations, steam rail-
roads. telegraphs, telephones, express
companies, street railways, gas, elec.
trio lighting, water companies. all Of
which are privileged enterprises,
whose value exists because of a grant
from the city, or some privileges
which they enjoy from the state. Cor
rorations of this sort are both IT,
adequately taxed as compared with
the same class of property in other
states.
The present method of valuation Of
q
ago, possibly at the time the constitu.
tion was adopted. when there was no
very great difference in property. 1t
was all visible and accessible. We
got our taxing system under those
circumstances and we have not sub
this. In the meantime immense cor
porations have come into existence,
and are still taxed on what is really
a scrap basis. they are assessed piece
meal. The assessment of railroad is
made by the county auditors. There
is no attempt under the law to get at
the railroad as unit, as a complete
thing; there is no attempt to measure
It's earning capacity no attempt to
get at its stock and bond value; no
attempt to reach its franchise at all.
The same is true of street railways,
gas companies and all franchise cor
porations.
In many other states. probably n dozen
or fifteen, the Ohio method OF valuing
merely the physical property has been
abandoned for what is generally spoken
OF as the franchise tax. The interstate
commerce commission make a report Of
the amount OF taxes paid by the railroadH
IN the United States, including excise,
license. real estae. or any tax which they
pay. From the report OF 1905, which is
found In Statistics Of railways page 100,
II appears that the railways of Massa-
ehusetts, for instance, pay 1,i72 per
mile of single track; Of Connecticut,
81 1,259; Rhode Island, sl.0i9; District OF
Columbia, 81 3i9; and OF New Jersey,
where the entire state seems to be or
ganized In a movement for taxation OF
railways-it has been the most important
issue In their politics for two or three
years-and so far as / know nobody
questions but what the railways there
are very lowly taXed-but In New Jersey
they pay SSiS.00 per mile single track;
tai tax on the railways is s47s,0O per mile
single track.
The DecennIai Valuation OF Property.
At the present time we assess real
property once every ten years. II is as
sssed by local appraisers elected from
every ward and township. That is a sur
vival from the tine when this was an
AGRICULTURAL state; there were no great
cities, and II was probably substantially
Just. In New York, and many OF the
states. instead OF assessing land and i'm
provements every ten years. they are as
sessed every year. In almost all states
know they assess at least once In every
three years. We assess once in every
ten years. At the last session Of the
assembly asked the auditors OF a num-
Der Of counties TO aid me In the prepara-
tion OF a bill dealing with this question:
and from whateve. section or county
they came they told the same story. that
the last appraisement OF 1900 was most
unequal. They told Of property on oppo-
site sides Of the same street assessed At
10 per cent and some at 100 per cent OF
lts value. But ten years is not often
enough TO assess property which Is chang
Ing In value as rapidly as much OF the
In Ohio is. We have, II I recol- |
Isct rightly, Sc towns or cities. We prob
ably have more big towns than any
state IN tne Union, ranging from half |
million down to 50. 900. In these big cities
and values change very rapidly; and yet
under our laws today there is no means
by which land can be gotten on the tax
duplicate.
Home Rule In Taxation.
Some years ago there was submitted 10
the voters Of this state a constitutional
amendment which exempted securities of
counties and cities from taxation. At the
last session OF the assembly a resolution
was introduced to put the constitution
back In its former condition. At the
same time the Ohio State Board OF Com
merce had resolution which II was urg-
Ing. providing for some sort OF classifica-
ton Of property, so that II would be pos
sible for us to 10 as they do In Pennsyl-
vania, where they put personal property
on the duplicate at 4 mills, and think
they get as big revenue at mills as
we DO at 25
worked over that measure with some
Of the senate last winter and
nnally drafted substitute to the tax
clause Of the constitution, Article xii, Sec
tion ., which adds to the section as Il
existed up 10 the time OF the last amend
ment. provision for local option. It leaves