Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1910-01-17
OUR STATE TAX SYSTEM

THE MEETING of the State Board of Assessors in this city during
the past week has resulted n a discussion owe taxation which las
brought to light many of the slaring fauds n Inconsistencies " 'he pres
en- revenue revenue system Of this State.
The old fight over railroad assessments has zee o. the carpet again
and the railroad companies have e npen 10 i"e d hsne '""
ton than they have faced in years.
~ 9TH nropery in the State is about thiry-fve per cent OF its cash
value. a statement which cannot be denied, it would naturally follow hat
an ssessmen Of $4,000 mile would be a fair assessmen OF railroad
property with a admitted value of 100000 a mile.
But the fact that stands III with ugly ditinctness is that h aver
90 valuation for tax purposes is about one-thrd tn actual value.
This is a II ugly fac because it is a open violation Of the law which
distinctly provinces tme "' r pop" y, INV Of law h vari.
JUS Assessors in the State have taken upon themselves the right to ii X a
valuation on property twothirds less than the law prescrioes n WI
10 the result? Nevada gets the reputation of being a impoverished
State. and the rate of taxation. three times more than it should De legih+
mately. drives millions Of capital away which, with a proper Ia rate OF
about o per cent. instead If 3 per cent, would bring investors here
and further assist in lowering the rate.
When you ask a Assessor why he dsobeys the law he invariably
replies that it is because all the rest do. He does it simply o protect his
own county from paying a greater amount to the State than would be a
fair proportion. This is necesstated because Of tho anuquated la W
which does OF provide for a segregation of state and county taxation
Until his amshacke law is wiped off the statute books rates will con
tnue to rise and valuations go down and the high rate will continue to
brighten capital away.
The multiplying of the present valuation of all taxable property in
this State by three would leave the amount to be paid by respective tax
payers just where it is now, but the State would be the gamer by many
millions Off dollars by the influx of capital which would follow the estab-
lshment of a low tax rate.
Oregon established this system with great success and California has
followed suit. Twice, such a bill. copied from the successful Oregon law,
has been introduced in the Nevada Legislature and no attention paid TO
1t. Most of the states are recognizing the necessity of segregatng state
from county taxation and are reaping the benefits Of so doing.
fix whatever valuation he pleases O his W property AM pay taxes on
that valuation. If a mar with $4,000 worth of property wants to ut in
the valuation of $4,000 he a do so. When the "a list is published,
however, and his neighbos desire n n of them offer him s1o-
900 for tn property and if he refuses to give "a deed, the property is put
up a auction and sold to the highest bidder.
In such a case the owner has to bid to ia his property, if he wants
to hold it bad enough. All realized over the assessed value goes to the
state. If ths. comes out Of the owners pocket it is the penalty for under
valuation. If the property brings lest than the assessed value at auction
the state makes up the difference to the owner With this la in force
each property owner places the valuation of his property just what he
would lake for it for cash. His assessment is a notification to every
one that 1t is the cash price at which ne holds it, Under this system the
railroad companies would naturally put their valuations at. just the figure
at which they would be willing to sell thu road and all other classes of
property will be taxed at the full cash value.
But the railroad companies are not the only people who have been
lodging taxation. In n year statistics showed that the railroads had
shipped 100000 head of cattle ron the State and it is presumable that
a good many more were driven u o foot. Yet the tax rolls showed
that but 10000 aead of cattle We're taxed in the state during that year.
Sheep escape taxation in about. the same proportion.
The mine owners have. for many years evaded their taxes O the net
profits, resorting to false accountings and perjury to cover their real in
debtedness o the commonwealth. This is because the high rate is a in
ducement to dishonest people to evade taxes. The honest people have to
pay higher to make up the losses.
Reduce the rate by a more equitable system of valuation and the
temptation to dodge the Assessor would be correspondingy minimized.
Provide the simple and automatic remedy provided or in the Maine law
and all would be taxed alike and equtaby.
TIL fundamental principle of taxation is equality and departure
from that principle results in injustice t someone.
cept the results o. the Oregon law Dr. the Maine system, provided that
they understood the underlying principles of the systems.
The trouble has been primarily that the present system in vogue il
ments until few people understand it and not understanding system
they hesitate Ito investigate my other.
The next Legislature should repeal the present inadquate tx svstem
N adopt on more uptodate, if a practical solution Of this vexed prob-
lem is vel reached.