The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1908-01-16

OF real anu personal property On Tue
one hand and the owners of certain
classes of corporate property on the
other, as a result of the requirement
that all property. however used and
benefited by public grants and fran
Chises and whatever It's earning ca
pacity, shall be valued for taxation
by uniform rule and subjected TO
one fixed method in determining the
contribution it shall make to the sup.
port of state and local governments.
Finally. there are many instances
OF peculiar hardship between classes
of corporations caused by an EFFORT
from time to time, and without any
consistency OF plan or purpose, 10
avoid constitutional obstacles in Sc.
curing a just return from those who
enjoy special privileges in the control
and management of such property.
The evils disclosed above are then
discussed in detail under these sub.
heads:
Inequalities Between the Owners
of Real and Personal Property.
Inequalities Among the Owners OF
Real Estate
Inequalities Among the Owners Of
Personal Property.
Inequalities Between the Owners Of
Real and Personal Property and Own.
erS of Corporate Property.
Inequalities Among Corporations.
Summary Of Evils.
The conclusions of the commission
memL ars on the fragrant inequalities
in the present tax system are sum-
married. by them in these words:
We have found that the general
property tax is a failure, for purposes
either of revenue or equality; that
more than half of the total wealth of
the state in tangible property alone
escapes taxation; that of intangible
property, such as moneys, credits
stocks and bonds, subject to taxation
under existing laws, not 10 per cent,
perhaps not even j per cent, IS
listed on the duplicates; that the
dCcennial appraiSement Of real eS
tate is far too infreQuent to pro
ducr fair and equitable valuations;
that the maintenance of levy for
state purposes upon all real and per
sOnal property and the interminglinE
of state and local sources Of revenue
produce between the counties, cun-
cealment of public expenditures and a
tendency to extravaganza; that tae
methods Of taxing corporations are
antiQuated and cumbersome; that
franchise values generally escape tax.
dlltll, HCXCpDl DIS lU Ctl lulll ClbSSCo VI
corporations, and as to them the law
is incapable of adequate enforcement;
that the great number Of eX-ofticio
state boards now administering tax
laws creates confusion, prevents thor
OughneSS and reduces revenues; that
the general completely Of our present
system tends to prevent public knoWl-
edge of the burdcns and Incidents Of
taxation, and finally that the chief sui
ferer from all these ills is the citizen
whose possessions are so plainly Visi-
Bile that no device or evasion can Sc
cure their escape
Recommendations
The report rCc"mmenGs
First, an amendment of the consti-
tuition of Ohio aboIishing the general
property tax now required in Sec.
of Art. XII, and giving to the Iegis-
Iature a freer hand to deal with such
subjects as franchises, stocks, bonds,
cash, mortgages and other intangible
property.
When the present commission was
appointed all the members hoped and
several believed that way could be
found to remedy the chief defects in
our tax system without amending the
constitution. We recognized the fact
that a constitutional amCndment is
radical stCD to lake and ought not to
be proposed if by any other means
adequate relief coull be secured to
the people. 1t seems proper to say,
therefore, that the conclusions we
have reached upon this sGbject have
been formed with great reluctance.
The recital of conditions at the public
hearings, the discoveries that follow
ed paiusthhin% Investigation Of facts
and statistics. tne Judgment Of men
representing all classes and interests
whose knowledge of the subject ena-
bled them to speak with authority, the
experience OF other states in the past,
the progressive movements elsewhere
at the present time, and finally care.
full study Of the restrictions in section
. of article II Of the constitution of
Ohio and the decisions of the courts
such restrictiOnS--all these
considerations have compelled the
conclusion that no just or satisfactory
tax system can be established in this
state without removing the cOnstitu-
tional obstacles that now bar the way.
The general property tax has long
ago served its day. The requirement
that all property, tangible and intan-
gible, should be taxed by a uniform
rule answered well enough for a time
when nearly all property was tangible.
The attempt to tax stocks and bonds
in the same way as cattle and farms
seemed entirely feasible in an age
when there were very few stocks or
bonds. The Effort to secure from rail
ROADS and similar corporations a fair
to the public revenues in
return for thoir puhlic franchises, by
J.,
us to other classes of property, dis |
closed no hiat of failure in day
when there were only two locomotives |
in Ohio AMI less than 20 miles of rail |
road track, and before teIegraphs We're
in | Sc or teleOGOneS or electric light
or transportation had been invented. |
We have examined q number of con.
StitutiOnGl amendments either recent
" adopted or now pending in other |
s s, as well as the form proposed |
to .:e electors Of Ohio in 1903, which |
failed of adoption, and numerous
other sUgS gHt.olS, to meet the pres. |
ent situation in this state. Every.
where there seems 10 be a growing |
opinion that the legislature ought to |
have freer hand in establishing |
system Cf taxation. There are some |
who believe th2t no restrictions what |
general assembly: tlat constitution |
passed more than half a century ago |
ought not TO be permitted to interr0se |
its obstacles to the natural develop |
ment of public thought, and the chang |
ed conditions evolved from the COM
pleX business enterprises Of modern |
times; that the interests of all classes |
OF the people are safe in the hands |
Of chosen representatives. commits |
stoned to conserve and Nrotect those
interests, ard that no risk will be en-
countered by any element Of our cit.
izenship in trusting the legislature to
devise just and equitable means OF
raising public revenues. There are
others who feel that while the pres
ent constitutional limitations undoubt,
edly prevent muchneeded changes in |
the laws, yet that no constitutional
amendment slould. or need, go fur
ther than to so enlarge the powers
OF the general assembly as to enable
it to correct the snecifc evils most