Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1909-01-20

message to the legislature. Governor
Davidson wisely urges great caution
in changing laws. He says:
81 trust that you viii, in such legis-
lation as may be enacted, remember
that changes in statutory laws, except
where made necessary to meet chang
ing conditions or to perfect those
found inadequate, should be avoided,
Frequent changes tend to produce
confusion, and to unsettle the repose
and confidence of the people in the
stability of the laws" Then follows c
review of the financial condition
Taxation.
In his message to the legislature OF
1907, Governor Davidson called atten-
ton to the fact that the efforts OF the
TAX commission to assess and success
fully tax personal property had proved
a failure We are no nearer TO the
goal now than we were several years
ago. says the governor. Especially is
this true of cash and intangible per
'sonal properly, which may be said
practically to escape taxation. The
apparent impossibility of dealing with
credits as a basis of taxation caused
the majority of the tax commission
in 1908 to recommend the exemption
los ali credits This has not been
done by formal legislative enactment,
though the fact is that all forms OF
crad;tc aua ,+;rfuaIIxr o,xapant ft.ay,, IN
cal taxation. This is true. also OF
money, the most substantial form Of
personal property.
An attempt was made i'm 1903 to
provide for the taxation of mortgages,
but the act, in fact, resulted in their
exemption. This leaves the best Sc
curities not taxable while other cred
Its are made taxable by law The
governor hopes that with the inaug,
uration of system OF income taxa
ton these inequalities may be righted,
and that If it shall be found desirable
% exempt credits and money, the
same may be reached through the in
come tax. However, if mortgages
taxation, it requires no argument to
demonstrate that all other forms OF
credit should also be exempt
AS railroad and other corporations
under the state system are required to
pay the average rate paid by the
people of the state. it follows that ii
large amounts are added by the tax
commission TO the property returned
by the local assessors, the result is
that these corporations are directly
benefited IN a reduction of taxes, and
that, in fact, they do not pay the av-
erage rate paid by the people of the
state. In my opinion" says the gov.
ernor, the statute should be amend
ed so as to forbid additions being
placed on the general property of the
state based on the fact that personal
property is not reached by the local
assessors. Such power over the amount
of tax to be paid by any corporation
should not be conferred on commits,
sion.
Another matter entitled to consider
alton is the effort made by the legis.
lature of 1905, by the enactment of
chapter 259. providing a remedy, where
the local assessment is not made in
compliance with the law, authorizing
the tax commission, after a hearing,
to order a reassessment of the prop
erty of the district. Experience has
shown that local officers do not, at all
times, in making assessments. obey
the mandate of the law. and that
many local assessments are made
which have no semblance of justice or
equity in them This act was de-
signed TO remedy that evil. 1t was
carefully drawn, and If enforced would
have been of great benefit in compel.
ling compliance with the law. The
tax commission proceeded under the
statute for a short time and caused
assessments In a few instances in
districts where ii was shown the local
assessor had not complied with the
statute. Later the commission asked
the opinion of the attorney general aa
to the constitutionality of the act.
That officer held the act unconstitu.
tional, as being an unauthorized inter.
ference with local self-government. II
has never been tested in the courts,
and as the principle involved is OF
great Importance, some effort should
be made to enforce the act TO the end
that lis constitutionality may be an.
thoritatlvely determined. IF the act
is, in fact, unconstitutional, then the
legislature is powerless to remedy the
very evil which strikes at the root of
all taxation problems, for If the local
assessment is unjust. all assessments
based thereon become. also, unjust
The evil effect of such doctrine is
not limited to taxation alone. but ex-
tends TO other matters as well. If
the legislature has no power TO cor.
rect the evils arising BY non-compli
alce with the statutes as to local as
sessments. then such assessments can
never be better or more jus. than the
particular locality where they are
maze desires Them to be. II this be
true. then It is well to consider
whether our fundamental law should
not be amended so as to permit some
supervision by a central authority
over local assessments.
Income and inheritance Tax.