The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-12-09
STATES EXEMPTION
LAW CRITICIZED
STATE TAX COMMISSIONERS ASK
LEGISLATURE FOR NEW
STATUTE.
Would Place Tax on Corporation
Money and Credits Levy to Be
Used for State Purposes-Presen
Law Has Not Accomplished Pur-
pose for Which It Was Enacted.
They Say. 4

Seattle, Dec. 3.-The Poat-Intelli-
gencer says:
That the state law exempting mon
evs and credits from taxation ia q
failure, and should be repealed, is the
conclusion reached by the state tar
commissioners, who will recommend to
Gov. M. E. Hay and the members Of
the legislature Jnat a new system for
the raising of state funds be placed in
operation, providing for the levying Of
a state tax on public service corpora
tons, moneys and credits, and the re-
lease of the counties of the state from
further taxation for state purposes.
The proposed measure would relieve
the various county levies of matter
of 5 mills annually.
Would Simplify the System.
Under the terms of the proposed
plan the state tax commission would
assess pubic service corporations,
money and credits, and the necessity
for equalizing the assessments on real
estate and personal property, as be-
tween counties, for state purposes
would be done away with, each coun-
ty handling it's own tax affairs as it
may deem wise and prudent.
The yesterday law, by which mon
eys and credits were exempt from tax
alton, was passed for the purpose Of
1rip iDr OY1fci6n fol ;v%0
and decreasing the local rates of in
terest
Although much outside capital has
come into the state, say the commits
sioners, it has been largely invested in
real estate and in other taxable prop
erty. The exemption, they add, has
not brought any particular flood of
coin, nor has it operated to reduce the
rate of interest. Interest rates are
slightly higher than they were prior
to the passage of the exemption law.
Continual Friction.
The continual friction developed by
attempts to equalize the assessments
of the different counties of the state,
as between each other, for state taxa
ton purposes has emphasized the nee
essity for the raising Of funds for
state purposes by some method other
than the 'levying of a state tax in each
county. It is thought that reason
able tax upon public service corpora
tons, moneys and credits, levied d.
rectly by the state, would produce am
pie funds to run the state, without inn
posing hardship on any public serv-
ice corporation or investor of money.
On the part of some of the public
service corporations, as well as other
taxpayers, complaint has been made OF
discrimination through the exemption
of the tax on moneys and credits, and
this has formed the basis of much It'll
cation. The proposed law would place
every form of property on practically
an even keel.
Tax Commissioner Thomas A. Par
lsh has investigated the operations OF
the laws of various Eastern states,
and finds the system to be recommend
ed by the tax commission to be entire
~ satisfactory.
County Assessor Albert e. Parish
has also asked the Endorsement OF the
tax commission for an amendment to
the personal property tax law, making
1t possible to collect Is per cent inter-
est on delinquent personal taxes, after
distraint of property and before sale,
If settlement is made.