The Calumet news., 1911-12-13
Two TAX PLANS
ARE SUBMITTED
Report on Revision of Tax SyS
TEN Leaves the Choice up
to the Legislature
COMMISSIONS WORK AT END
Corporate Excess Plan Still Held
to be Desirable
One Plan For Separation OF Local and
States Taxes. Other Limits
Primary Fund.

TI'"d'y FuHSs
Lansing, Mich, Dec, 1.-two prop
ositions were submitted TO Governor
Osborn today by the expert commits
sion which for several months has
been digging into the tax problems oi
Michigan. one provides for complet,
separation of state and local taxes and
the other provides for leaving condi-
tions as at present, but placing a cash
value tax upon corporations. which
would materially lower local rates by
increasing local assessed valuations
The commission takes the ground
that it is i'm no wise a legislative body.
Ii therefore suggests the two systems
Of taxation and leaves it for the legis-
lature to determine which shall be
adopted.
The first plan providing for separa-
ton of state and local taxes provides
for the following scheme:
Divide Primary Fund.
Amend the constitution so as 10
guarantee primary school fund of 81
per capita for all children of school
age. This would automatically re-
lease the balance of the tax collected
from the railroads for the general pur-
poses OF the state. At the present time
the number of pupils of school age
would take about $3,O5O,O 1000 at 81 per
capita out of the total collection of
nearly $3OOO,OOO for the general pur-
poses of the state.
This sum would be augmented by an
increase i'm the rate upon inheritance
and the extension of that tax To the
transfers of real estate which would
produce on conservative estimate,
$500 600 a year.
But the taxation of interurbans and
those water and electric power COM
panies through the state board OF as
SCISSORS and at the average rate as
railroads are taxed This 1t is estimat-
ed would produce about 5000, 900 annu-
ally.
TFdNCUlSc TcN eIlO WOEb9d9o an
by increasing the franchise fee upon
the organization and increase of stock
Of corporations. The rate is now one
half of one mill upon each dollar of
capital stock and the report says:
'An increase which would produce
100000 additional revenue per an
mum would not be oppressive or un-
duly discourage the creation of cor
Take for state purposes the entire
recording fee which is now paid by
in lieu of taxes. This would
be extended TO all secured indebted
ness. fair estimate of the revenue
10 accrue being 100000 year.
1t is hetd that mining corporations
should not, through separation, be eX-
ampted from bearing a share of the
state tax burden, and for present pur-
poses it is recommended that the
mines should pay one-ninth of the de-
of the state for general ex-
)enses.
1t is further recommended that the
mining situation should be investi-
gated I'm order that a scheme may be
devised by which they may be placed
under the same plan as recommended
'or other corporations.
Tax Corporate Excess, Also.
The balance of the needs of the state
should be made up from "A tax upon
he corporate excess which at pres
mt would vary from $2,O0O,O0O to S2,-
500, 900 annually.
The rate upon which the corporate
excess would be taxed is arrived at
n several ways.
The average rate.
A fixed percentage of the value of
he corporate excess annually.
A rate arrived at by dividing the
otaI corporate excess into the balance
If the state budget after the other
sources of revenue have been deduct
ID, provided that this rate should
never exceed the average rate of the
state.
The Second Plan,
The second plan provides that all
which IL is intended shall
'ome under the corporate excess sys-
em shall make reports to the state
AK commission on prescribed blanks.
hat the state tax commission shall
TX the value of these properties in
'luding all elements both tangible and
intangible and certify these values to
he local assessing officer.
In case the local assessing officer
ails to place these properties on the
oils at the values certified he must
certify his reasons therefore TO the
state tax commission who by review
would have authority to place them on
he rolls at its own figures.
The state tax commission should hold
conferences with the local assessors
10 instruct them in the methods OF
getting at cash values and the COM
mission would have power to employ
such assistance as might be necessary