The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1909-01-07
larger returns and a better enforce

| , VI pdlI1Cu1di ulOluSuI Is IudI CHAP
ter of the commissions report In
which is discussed the question of the
gross earnings tax of railways. The
state now receives over $3,O00,000 an
nually in railway taxes and If the re.
cent decision of the court in the gross
earnings tax suit is sustained the
amount now received will be in
creased by about 100000, as by its
provisions all of the roads must pay
4 per cent gross earnings tax. While
the amount now received is large it Is
pointed out by the commission that
under an ad valOrem basis, uniform
and equal with other property in the
state, the present rate of per cent
does not meet the requirements nee
essary to equal taxation.
In the matter of the assessment of
personal property the law establishes
an arbitrary personal property list.
| Expansion from time to time has
made the list Il complicated one and
because it has been arbitrary it has
omission of property which should be
listed In view of the changes which
! possibly may be necessary the com
! mission should be given the power to
extend or decrease the list of items
as eXigency may necessitate.
Taxation of Iron Properties.
During the earlier years of the state
our natural resources were largely
agricultural and forest. Recently,
however,, we have grown to be the
! first mining state of the Union and
our almost phenomenal sudden growth
/ in this field has made the question of
| the taxation of iron ore one of the ut
most Importance and of our gravest
concern. In the past twenty-four
years the state has pursued two sys-
TENS for the taxation of iron. For
eleven years during the infancy of the
| industry tonnage tax of 1 cent per
ton was imposed, one-half of which
remained in the state treasury, the
| other half being returned to the coun-
ty treasurer. The net amount re-.
! ceived by the state during that period
was $4S,45377. For thirteen years
| iron taxation has been upon all ad
valorem basis and the amount re-
ceived by the state has grown from
81 ,572.S3 in 1896 to 1851, 200 in 1907
and $599,4O0 in 1908. 1t is not my
purpose at this time to discuss the
merits of either the ad valorem or ton.
mage systems. While it is a most i'm
portant matter l believe that it is not
a question of systems so much as that
the mining properties should pay their
full and just share of the taxes. In
the consideration Of this question one
point must never be lost sight of: The
counties, cities, towns and school dis
tricts in the mining districts must
never be deprived of their full share
of the. tax levied and any plan which
would deprive them in any measure
of their just share of reliable and con.
tinuous revenues could not be enter.
tanned, as it would be unfair, unjust,
unwise and unworthy of the state.
Awaiting Courts Decision.
have refrained from a discussion
of the two systems of taxation for the
present because of the uncertain state
in which. we find ourselves and may
avail myself of future opportunity for
a further discussion of this question
In special message. Previously, I'm.
der our constitution as it stood for
nearly quarter of century, a ton
mage tax could not be imposed. The
legislature, by an act approved April
13, 1905, proposed to the people of
the state for their approval or rejec-
ton an amendment to article of the
constitution, which was known as the
wide open tax amendment, and which,
if approved by the people, would have
given to the legislature wider latitude
than it then enjoyed. The state can
vassing board declared said amend
ment adopted and a proclamation by
the governor was accordingly made
A partial recount of the vote was had
and in the district court judgment
was entered declaring the amendment
lost. Appeal was taken to the supreme
court, where the matter is still pend
ing, but from which decision will be
handed down during this legislative
session and in season for such action
in all the premises as your body may
desire.
If it should be decided by the su-
preme court that the amendment has
prevailed then the way is open to this
legislature for such legislation as it
may desire to enact. If the decision
is otherwise then further discussion
| of tonnage tax at this session would
be superfuous and your chief duty Is
action looking toward the resubmis
! sion of this very important amend.
ment to the people of the state OF
Minnesota and because of it's vast
Importance I urge upon this body it's
most earnest consideration to the end
that the amendment may be submit
ted at the next general election. The
! necessity for this amendment is not
alone in the matter Of the taxation of
iron ore, but involves practically the
entire question of taxation.
semi-AnnuaI Payment Of Railway
Taxes.
If possible a change should be made
| in tho nraSenf law SO far &C IT ra.