The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1910-01-06

| a general increase IN realty Valuations
Is to be expected, unless Ohio is the
only state which has gone backward.
The first thing to be done is TO make It
certain that the rise in valuation shall
/ lower the tax rate, so the people will
be asked for no greater amount Of taxes
than heretofore. It is what they have
to pay that counts, and not the valua-
tion or the rate by which this Is fig
ured. So a bill will be presented, which
should be promptly passed at the be-
| ginning of the session, reducing the
present limitation Of the tax rate in pro-
| portion to the increase in the duplicate
whatever that increase may be. This will
| prevent any raise in the total amount of
taxes levied. without the vote of the peo-
pie; but each owner will have less to pay
when the total required is spread over a
duplicate enlarged by values and prop
erty heretofore omitted.
While It makes no direct difference to
the taxpayer whether a high rate is ap-
piled to a low valuation of his property,
or low rate to a high valua ton. so long
as what he has to pay is the same, the
use of the low rate, which requires the
high valuation, will work to his ad-
vantage through the operation of familiar
principles of the science of taxation, as
shown by experience elsewhere.
Perhaps the greatest wrong that Is
done to the owners of visible property is
from the general Withholding from the
duplicate of money, notes, stocks, bonds
and credits The employment of profess
sional tax inquisitors has brought results
comparatively tri1ing, and a large part
of these never reached the treasury The
owners of securities bearing only four or
| five per cent, which is the general rule,
| simply will not return them to be taxed
three or four per cent. which is the COM
mon rate In the cities where most Of such
property Is owned. They regard this as
an injustice. and with some show of rea
son when other kinds of property, like
lands, which have no fixed market price,
are known to be taxed at much less than
their true value while their money and
securities cannot be returned at less than
their actual worth because there is no
room for opinion about it. So, by changes
of legal residence and other devices,
many persist In refusing to make re-
turns of such property.
But let the tax rate be reduced. as by
the true valuation of all other property It
will be, many think to as low as one per
cent as has been the case in other states,
and the chief source of the trouble is re-
moved. The sense of injustice is gone.
Men are, at least less likely to resort to
subterfuge or false returns to escape
what they must regard as just and fair.
| am certain many will not, and it will be
easier to deal with such as may be dis
posed to do so. which is the urgent duty
of the makers and executors of the laws.
The fear of being brought to book for
the past as may be done for six years
back under the present law. stands in
the way. 1t was passed by the procure
ment of the tax inquisitors, whose prac-
tice was to let the full period eIapse, so
| as to swell their gains. This law should
now be repealed, saving pending proceed
ings.
Then let the taxing authorities all over
the state make it known that proper re-
turns will be received and no questions
asked about the past, but that when the
total returns fall below the personal
wealth of the community, as shown by
the bank deposits, census returns, etc,
every person whose return does not COM
port with his known financial standing
and connections will be promptly sub
jected to rigid examination before his re-
turn to the assessor Will be accepted.
Answers to specific questions should be
required ana reduced to writing, signed,
sworn to and filed He should then be
permitted to amend his return without
penalty. so there win be no excuse for
refusing to answer.
Every one who regularly resides in
Ohio during any part of the year should
be required to make full return and. if
he claim therein to have gained a legal
residence elsewhere, all his property
should be taxed. nevertheless, which he
does not show by satisfa ctory evidence
has there been duly taxed. Rules of evil
dence may be established by law, and
failure to return property for taxation out
of tl;e state should be made conclusive
proof of legal residence in the state for
purposes of taxation of such property.
The fixing of severe penalties under the
present system has done little good be-
cause their intliction depends on dis
covery and proof by the state, which are
difficult. The burden of proof should be
shifted. The state maintains, at great
expense, courts to enforce rights and
others to settle estates, to one or both of
which money and securities must some
time CO.
1t should be made a condition Of the
right to maintain a suit that the property
involved shall not have escaped taxation.
Require this to be pleaded and proved
and the other party, as well as the court,
can be depended on to see that it is no
mere formality.
The right to inherit is created by law,
so that conditions may be imposed. Let
one of them be that nobody shall re-
ceive any share in the distribution of an
estate until he produces proof that all
moneys, credits and securities of the de-
ceased We're duly returned for taxation
Dy MIN III his lie time. II Sucn PROOF
be not made let the property in default
or its proceeds. or some part thereof. go
to the state. Too great hardship can be
avoided, in proper cases, by permitting
the payment OF an amount equal to what
the taxes would have been if proper re-
turns had been made. as under the fed
eral revenue laws the courts allowed
stamps to be placed on instruments
which had not been duly stamped when
freely added without impairing the effect
iveness of the laws by affording ground
for refusal to answer questions.
This will make the tax return and re-
ceipt muniments of title which all will be
careful to make and preserve. The state
has an undoubted right thus to protect
its revenues, and If the remedy be
thought severe it is no more so than the
case requires and it can readily be
avoided by the performance of a plain
and simple duty.
A charge of some part of the current
tax rate applied to the principal should
be collected, in addition to the record
ing fee, on all mortgages when filed for
record, and the right given to deduct the
amount from the taxes on the mortgage
when paid.
These measures should be now adopted
to become operative when the new ap-
praisement of realty takes effect in 1911.
Manwhile, believe public sentiment on
this subject will spring into life. 1t will
become a disgrace for a man to shirk his
taxes and thus take money from the
pockets of his neighbors who make
honest returns.
1 am confident that those who have
studied this problem will believe, as I do.
that the course proposed promises good
results. The situa ton could hardly be
worse than it is and has long been, so it
is the part of wisdom to try new
methods.
The amendment to the constitution
which was strongly supported last year
contemplated the classification of prop
erty so that the inducement of a lower
rate might be held out to the owners of
property in hiding from the present high
rate. The course now suggested will Sc
cure the lower rate, but it will be for
all taxpayers alike and so avoid the OBJ
lection which defeated the amendment