Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-02-09
ASSESSOR
DEFENDS
SYSTEM
DECLARES CORPORATIONS ARE
|. TREATED FAIRLY
RECOURSE TO STATE BOARDS
AND COURTS OPEN
MalIard Wants Charter ReVisionists
to Insert Alternative Propo-
sitlon on Taxation
Scheme

Assessor Walter Mallard talked to
the CITY club yesterday on the proposed
amendment to separate local from state
taxation, and incidentally discussed
different phases of the assessment sys-
tenn.
Opening his address Assessor Mallard
said:
"The outcome of the desperate fight
made by national banks to break down
the law requiring the taxation of cap
ital stock in California is conclusive
evidence to many that the supreme
court will never reverse itself on the
many decisions which have been hand
ed down covering the subject.
"It is true that many assessors hoped
to believe the law covered public utility
corporations only, but the last decision
of the state court swept away any such
supposition.
N There are a :sw corporation attor-
neys who affect to believe at the pres
ent day they will win in an action to
have declared void such assessments,
but doubt that such thing will hap
pen.
Not Double Assessment
at is claimed this system creates a
double assessment. This is far from
being true. To begin with, the shares
of stock of California corporations in
lliC JdllQS VI dIC CAOitPS
from taxation. The capital stock OF
the corporation must be assessed to the
corporation in the form of tangible and
intangible property, the total of the
two assessments being not greater than
so per cent Of its true value under the
system in this city. The assessor be-
ing careful to deduct all the tangible
property owned by the assessed, no
matter in what part of the world 1t Is
I'll a.GI.
claims are not founded on facts.
There is no doubt in the world that
corporations are a great benefit to any
community, especially to Los Angeles,
where they should receive as fair treat
ment as any other class of property
owners, If an assessor should tax
them unjustly, they have recourse TO
the board of equalization, and in the
case Of Illegal assessments to the courts
of the state. But L fear they are not
satisfied with these safeguards which
they may avail themselves of, but want
the. assessor to be the responsible party
in setting aside the plain intent of S1e
constitution, the definition of which the
court has recently furnished.
Hint to Charter Commission
'In view of the fact that it is by no
means certain the people of the state
Will rainy PlOPOSCA e1AANAAoAAASAh ~
the constitution separating state tax
alton from local taxation, I would be
glad If the charter revision committee
would place an alternative proposition
in the new charter, and give the people
o. chance to vote on the question. Ger
tainly there would be no harm in this
procedure.
without having asked for an opinion
on the constitutionality Of this action,
/ take ii for granted the people of this
city have power to frame tax laws for
municipal purposes.
"It requires a large amount of money
to run this municipal government, most
of which must be raised by direct taxa
ton on assessments levied by the as
SCISSOR.
This year the city council had an OPP
portunity to get the finances of the city
out of a hole, but it has not done it.
1.-THE people are congratulated on
having a limit of 81 in their rate of
taxation; otherwise probably their rate
would have gone to SLIGO If it had not
been for this limit.
Change Fiscal Year
ST think it would be advisable for the
charter revision committee to make the
fiscal year identical with the calendar
year Then If the city government
would make a reserve fund during the
next two years so as to pay off the
floating debt and begin after the char
II n. II 11aL 0 l. toll