The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1909-01-01
TONNAGE TAX
Explained by Attorney Gen.
eral Young
Existing Conditions Dwelt
on Intelligently

!
the attorney general, asking just
how far legislation may legally &C
on the subject of a tonnage tax on
iron ore, if the wide open tax
amendment is decided as not adopt
ed as to how such tax may be
j divided under such circumstances,
and whether such tax would have
to be in lieu of all other taxation
Although Attorney General Young
has not as yet answered the letter
of the tax commission, it so hap
pens that he has recently answered
practically the same questions put
to him by w. A. Simonton, of
Fleetwood. In writing such an
swer to Mr.. Simonton, General
Young says in part:
"A tonnage tax on iron ore could
be imposed without the wide open
amendment, but only on the condi-
ton that the proceeds of such tax
should be divided between the state
and the various taxing districts
where the mines are distributed.
Such tax would be of no advan-
tage to anybody, and might work
great injustice to the localities
where the mines are situated. If
such tonnage tax were imposed,
it would have to be a Substitute for
all other taxation on the mines.
The iron mines constitute the great
bulk of the taxable property of the
districts where they are situated and
therefore if the scheme of tonnage
tax for all purposes were adopted,
and the mines in any district should
be shut down for assessor by rea-
son of strike or any other cause,
no money would be raised by the
tonnage tax in thst district, and
the local schools aad municipal
governments would, in such case,
be left entirely without revenue for
that year. On the taxes generally
imposed on property throughout
the state, only one-tenth is for the
state purposes, and 'nine-tenths are
for county, school and municipal
purposes. Under the form of tom
mage tax referred to the state would
only get one-tenth of the proceeds,
and nine-tenths would have to be
appropriated back to the localities
where the mines are situated. Such
localities might, under that scheme,
levy an ad valorem tax on other
property but none On the mines,
and the tonnage tax would have to
be so adjusted each year that nine
tenths thereof (the share to which
each taxing district would be en-
titled) when added to the ad
valorem tax on other local property
would give the taxing district suffi-
cient revenue for the support of its
schools and local government.
Many important and progressive
cities have grown up on the iron
ranges with large and fourishing
schools and other public institu-
lions. Any plan of taxation of the
iron properties which would so
completely deprive them of their
local self government, would be TN
just to them and would do the
state no good. Under the wide
open tax amendment, it would be
possible to entirely separate the
state taxes on iron ore from the To-
cal taxes so that the state taxes
/ thereon could be collected on tom
mage basis, while leaving the local
revenue in the old way by an ad
valorem tax on all local property
including the mines. In this way
the power of local self-government
| by the communities where the
mines are situated, would not be
interfered with, while the state
would be enabled to get a much
more adequate tax out of these
great properties. In 1907 about
$1,000, 900 tons of ore were taker
from Our soil and shipped from the
state. A FIVE cent tonnage tax or
this ore for exclusively state pur.
poses would have brought into the
treasury 81 500, 900, and ten cent
tonnage tax would have produced
to the state IS, 100000 instead o.
the sum of $661 900 which was
actually paid by the mining pro
perties as state taxes. Such ton
image tax, with the taxes on rail