Mountain Home maverick. [volume] (Mountain Home, Idaho) 1906-1911, 1911-03-16
AN EQUAL TAXATION
Capital News.)

The communication from Lewis
ton in yesterdays Capital News rel
alive to the taxation Of property
which now escapes taxation throws
an interesting side light on the gem
eral subject of taxation in this state
and affords still further ground for
the belief in the absurdity Of our
laws, their enforcement or something
else, not yet struck as the remedy
Relative to the demand now being
made by the governor for the taxa
ton of property at its full cash value
instead of the 20 to 40 per cent val
ne now placed upon it, it will be in
teresting also to note other instanc-
es than those quoted by the Lewis
ton gentleman wherein all property
will not share in an actual ratio in
the readjustment.
Take the case of mining proper
~ for instance. Under the law the
net income of paying mines each
year forms the basis of the valuation
of such mines. Thus if the output of
the rich Shoshone county mines is
such that after paying all expenses
of operation for improvements, all
expenses for salaries and clerk hire
in management. and all other expens-
es, there is net balance OFFS ay,
100000, which is not far from
the average profits of those mines
each year, that S3.OOO,O0O will be
the taxable property of those mines
for that year. Should this net profit
the next year be $6.OOO,OOO then the
latter figure will represent the tax
able value of that property and
should it be cut to s2,OOO.OOO in any
one year. the valuation is reduced ac-
cordingly.
Suppose the net profit, or taxable
valuation be considered as being 49,
100000 and that the tax rate in
shoshone county is seven per cent
1t will be seen that the mines WI
pay the taxes in that county $210,-
600 for the year Now suppose the
valuations Of all other property are
raised to a full cash basis and that
the result of such increased valua-
tion upon the town lots. merchandise
and the patented lands of the coun-
~ together with improvements and
other property, should be such as
to make tax rate of only two per
cent necessary to raise the neces-
sary revenue. Then the mines would
have to pay but 100000, or a clear
saving of $4,000 which would have
TO be raised from the other property
of the county, thus greatly increas-
ing the tax burden of all save the
wealthy mine owners.
The banks of the state would
share in the general Encouragement
In somewhat similar manner, for
they are allowed certain exemptions
fixed absolutely by law, and they
have always availed themselves OF
these exemptions in the past, which
would act to prevent any great
changes in their valuations under
the proposed plan, so that as the
values of farm property. Of merchan.
disc. of town lots. of improvement.
on real estate and on all other Wis
ibie property are increased and the
tax rate reduced, these legally pro
1ected institutions would receive the
benefit in reduced taxation.
The instances cited here and cit
ed by the gentleman from Lewiston
suggest that it might have been high
ly advisable to have called the leg
isIature's attention to the intention
to force an increased valuation. Sc
that the laws relative to certain Of
these legally protected business con
Germs might have been changed Z,
suit the proposed changed circum
stances.