New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1907-01-09
GOVERNORS MESSAGE.

II 4 = Z L
The following is a careful review
ana synopsis of Gov. Johnson,s Mes.
morning: 20 = 49, : y :
one OF the greatest ouestions with
9hich you will be called upon to deal
IS that Of solving the problem Of nro-
Vidins, at least in some measur .
US ana just method of Distributing
VIZ 'dA burdens of the people YOU REP
resent - : - ~
FROM the birth of our state govern.
Ileht we nave had an unchanged sys-
oeli ol taxation in the form of a direct
eaA upon real and personal propertv.
ne history OF taxation in our state
mas Taught Us that taxes have not been
equal and that the method has nor
paen efficient. The cause has been
ia part the law and in part the appli-
cation
new Constitutional Amendment.
UP to this time the legislature has
never aseen able to modify in any ma
ter1al degree the system of taxation
winch, as we all know, is very largely
one Oh dlrect ad valorem taxation upon
PERSONAL and real property. At the re-
cent general election the people of
minnesota voted to modify the consti-
tRtlon and adopted an amendment Civ
ing TO the legislature wider latitude:
ana 1t now falls to you to Justify, in
some small measure at least, the opin-
loa OF the people that this action, both
ny the legislature and by themselves,
was wise one. The constitution as
amended provides:
Inc power of taxation shall never
pc surrendered, suspended or con-
tfacted away. Taxes shall be uniform
upon the same class OF subjects and
snail 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
III the state legislature of Minnesota,
for the first time in it's history, the
complete and sole power and response
H1l1ty of taxation, with no constitu-
t1onal restriction as regards the
method or system of taxation pro-
p1ded, save that the taxes shall be
uniform upon the same class of sub
5ects 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
lEre. One of the difficulties heretofore
experienced has been the failure of
the provision for the taxation of mort.
cages and other credits.
It 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 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
he paid into the treasury of the coun-
ty at the time the mortgage is record
ed, and a 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 resident of
another county in the state the tax to
he RENTED to that county by the
county treasurer in which the mort
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
nent 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.
The commission should visit the
several counties of the state annually,
H. =
empowered to supervise the work Of
ANA aswM "a THRn