Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1909-01-14


Of the state and urges the necessity
Cor economy. He says:
In young and rapidly growing
commonwealth like South Dakota, each
succeeding session of the legislature
Is pressed hard by the representatives
Of it's institutions and the growing
demands of it's officers. as we'll as by
the needs of it's people, for increased
appropriations. Two years ago the
legislature. in response to insistent
and Jealous appeals, based in most
cases upon actual merit, increased the
appropriations considerably above
those made during the four years
preceding.
To provide for the payment of the
general appropriation for ordinary cur
rent expenses Of the state administra-
zion, the state board levied a state
tax Of mills in each Of the years
1907 and 1908, and also levied an ad-
litional mill in 1907 and an addition
4, mill in 1908 to provide for deficien-
,ies In revenues; and in 19O7-as dl-
rected by the legislature-it levied Ia
mills for the installation of Irvine
plant at the penitentiary, making the
:otal levy of state taxes for 1907, 4A
mills, and for 1908, 8 mills. While the
above appropriations were reasonably
necessary, and the state appears to
nave received full value for the money
expended, the end Of the fiscal year,
June go 1908, shows an increased de-
. acit which must be provided for by
deficiency levy in 1909. and 1T is the
iuty Of this legislature to firmly hold
the appropriations within a limit that
will enable the state to keep its eX-
penditures within it's income, and pay
It's outstanding warrants.
Notwithstanding the fact that the
constitution has placed a firm limit
oh made
for state revenues, and notWlthstand-
ing the fact that only two years ago
liberal appropriations were made Tor
new buildings for the institutions, the
reports submitted to the governor Tor
the biennial period now ending, snow
a list of new demands which the con-
dition Of the state finances makes "
imperative to postpone. We cannot
and we must not undertake to DO all
these things at once. The heads OF
the several educational and penal and
charitable institutions, including the
soldiers home and the boards of con-
troll, recommend special appropriations
amounting in the aggregate to more
than a million dollars, not including
the amounts recommended by the
state capitol commission as necessary
to enable it to complete the erection
furnishing and equlpplng OF the hall
completed building.
The governor reviews the work that
has been accomplished in the building
of the new state capitol. contracts
have been entered into for $54O,552 foI
the erection of the building and $4,000
for heating and plumbing. Construc-
ton work has progressed satisfactorily
and will be completed by Jan. /, 1910
For additional work in furnishing the
building and landscaping the grounds
etc, 100000 will be needed.
Under the law passed by the 1egls-
81, irrr n
ment and taxation of the property OF
railway, telegraph, telephone, express
and sleeping car companies the state
board Of assessment has been able to
procure much additional information
regarding the value of property OF
porations in the state, and 70 assess
the terminal and structures Of rail
way companies situated within the
limits of incorporated cities and towns
The law has proven to be most eX-
cellent one.
While the constitution contemplates
that all taxable property shall be as
sessed at it's full cash value, 1t Is no.
toriously true that local assessors as
sess it at from one-fifth to one-third
of its actual cash value, and this as
sessment is equalized on that basis
by the city and county boards of
equalization. In performing it's du-
Ties as b Stdle DUAL u VI SHuoAiLolAOli
the state board Is limited by law as
to the extent to which it may raise
the aggregate valuation of the tax
able property Of the state. The state
board, when it comes to assess the
property of the railroads, express,
sleeping car, telegraph and telephone
companies, must apply the same aver
age ratio to true value that is applied
to the assessment of other property,
because section 2 of Article XII Of
the constitution declares that the rules
prescribed by the legislature for the
appraisement and assessment of
property in the general law must be
ton shall pay tax in proportion to
the value of his, her or it's property"
In attempting to comply with the
spirit of this declaration of the con-
stitution, the state board aimed, in
assessing corporate property and in
property, to apply a rule by which, so
far as ascertainable, all classes of
property would be assessed at one
third of the full value.
The general results are, however,
far from satisfactory. Owing to the
incomplete and often misleading char
acter of the returns made and the
injustice is frequently done to in
dividual owners by the action of the
state board. A very large amount of
property is not returned at all and
consequently escapes all the burdens
of taxation.
Millions of dollars deposited in the
banks or loaned out on interest bear
ing securities are not listed by the
assessor and cannot be reached by
the state board
The revenue law of South Dakota
does not furnish a remedy for these
glaring defects I heartily agree with
the outgoing state treasurer in the ad
yocacy of law creating a non parti-
san, appeintive tax commission. The
proposed amendment to the constitu-
ton, submitted to the voters by the
last legislature and rejected by them
had in view a change in the organic
law which would permit a graduated
or progressive tax upon incomes and
inheritances and contained some excel
lent provisions. The fatal defect in it
and the one which undoubtedly caused
its defeat was the proposed removal
of the limit of taxes levied for state
purposes to two mills for estimated or
binary expenses and requiring legisla-
tive authority for deficiency levies
Public Service Corporations