The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-07-01
TAX Commission
REPORT RENDERED
THE COMMISSIONERS BELIEVE THE TERRITORIAL TAXATION sYs
WITH ONE OR Two EXCEPTIONS MODERN AND ADJ
vANCED IN CHARACTER-rHE7 PROPOSE A FEW AMEND
MENTs IN MATTERS OF PROCEDURE SOURCES AND METHODS

the latter problem ordinarily arising
where the state seeks to raise a part
of its revenue by taxing property in
various counties, each of which coun-
ties in turn taxes the same property
within its borders for it's own puT-
poses In this Territory the counties
do not possess, and have not sought to
exercise, the power of taxation. So,
too Tax Commissions elsewhere have
devoted much time and study to the
question of the tax on personal prop
erty, attacks upon that method of tax
alton being general in and out Of the
commissions upon the ground that the
tax is easily evaded, is productive of a
great deal of perjury, and for these
reasons fails to reach those whom it is
intended to reach and falls with undue
weight upon the honest. To some ex-
tent this Commission believes that
these objections to the personal prop
erty tax are in this jurisdiction found
ed upon fact; but after consultations
with al of the officers in this Terri
tory CHARGED with the duty of levying
and co lecting such taxes the Commits
sion does not find that in this Terri
tory the evils just mentioned exist to
such an extent as to warrant the abo-
lition of this tax. Hawaii is an agri-
cultural country. Industrial life is not
comrlicated as yet 1t is not easy to
evade taxes on personally nor difficult
to find the property itself. 1t may be
added that the tax is productive of a
considerable portion of the revenue of
the Government and that it aids, as
the Commission believes, in measur-
ing and reaching that financial ability
OF tax payers which is recognized by
the best thinkers on the subject as the
tue and just standard OF measure
ment or taxes as between the various
members OF the community who are to
contribute to the support of the Gov
eminent.
Again, in Hawai- credits are not
taxed as such. Mortgages as credits
arc not taxed. Money on deposit is
taxed to the bank as far as the same
is on hand on the taxation date. Stocks
and bonds of private corporations, ac-
counts receivable and promissory
notes are not taXab e. Certain con-
tracts only are taxable, as, for exam
pie, sugar agency contracts. The adop-
ton of or continued adherence to the
opposite course with reference to each
of these matters has been the cause of
much controversy in many of the
States.
A cause of complaint dwelt upon by
some Commissions is that assessors
are not sufficiently diligent or Jealous
in the listing of property, and perhaps,
in particular, personal property or in
assessing property up TO the full stand
ara Oh measurement prescribed by law.
Inls Commission unhesitatingly finds
and leports that this charge cannot be
Irutnfu..y made against any of the as
SCISSORS in TINS Territory. On the con-
trary it believes that for a few years
,dsC past our assessors have too often
assessed property at more than the
prescribed standard, that is to say, the
IAN casa Vaiue, and this very fact, it
further believes, is responsible directly
or indirectly for much of the feeling,
such as it is, which exists and has been
expressed IN favor of amending the
present laws in some respects.
Oftentimes tax commissions are call
ed into existence because of a neces-
sity for increased revenues from tax
government. From no source what
ever has the view been expressed that
any necessity for an increase exists in
TINS Territory, nor has any suggestion
or request been made for such in
crease. In view of these facts the Com
m.SsiOn mas not deemed it incumbent
upon IL TO seek evidence of such neces-
SHY. An increase OF taxes is always
and desc. Ved.y SO, unpopu.a ar and
should not be Tesorted to unless the
necessity for it is clear.
II may be remarked that, owing to
the expiration of certain tax eXemp-
ton periods, to the renewal of leases
r Of public lands at increased rentals
! and to the general agricultural devel
opment OF the Terrific. y, the revenue
received by the Territory under exist.
ing laws is increasing.
In passing it may be well to note
that the Organic Act of this Territor,
has no provision dec airing specifically
/ what are the powers of our Legislature
i on the subject of taxation. The only
/ provision applicable is that the Leg
) islative power of the Territory shall
= extend to all rightful subjects of leg
, islation not inconsistent with the Con
, stitution and laws of the United State
t locally app icable." Section So. Tax
( alton is a rightful subject of legisla
} ton. See, for example, Peacock VS.
5 Pratt. l Estee 294-298, affirmed in 10
. Fed. 770. The Act of July 80, 1886, 2
: Stat. L. 10, Fed Stats. Ann 264, set
( forth certain limitations on the powe
} OF the legislatures of the Territorie
. to legislate concerning the assessmen
= and collection of taxes for territorial
5 county, township or road purposes.
} In the pages following reference will
2 be made to most of the subjects t,
= which the attention of the Commission
= has been called by those who hav
r made complaints or suggestions, a
well as to other subjects which as
/ result of its study the Commission
! thinks ought to be adverted to.
< THE TAX ON REAL ESTATE.
S The Commission has found grea
e unanimity of opinion on the part o
T assessing officers as well as on the par
) of taxpayers to the effect that it i
- desirable that as far as possible as