Morris tribune., 1912-04-26
TAX ON MONEY.
Burden Now Equitable Why
Debts are Not Offset.
XIII-TAXATION OF MONEY AND
CREDITS-CONTINUED.

III ASA4I as explained IN the pre-"
ceding article. a somewhat radical
change was made in the method of
listing and assessing money and cre-
dts in this state. For more than so
years Minnesota had been trying to
reach such property for purposes of
taxation with the same machinery and
in the same manner as we taxed
tangible personal property. Our ex-
perience was not materially different
from that of other states and countries
that had followed the same methods
at no time did we ever get more
than fraction of such property on
the tax rolls.
Two causes have largely contributed
to our failure to reach this class of
property for purposes of taxatioa-the
intangible nature of the property and
the high rate of taxation that prevailed
in most of the taxing districts of the
state.
Such property, known as intangible
personal property, can be easily con-
cealed, because, unlike live stock, or
manufactured goods, or the goods and
wares of merchant, it is not sus.
ceptible to the touch or eye of taxing
officials and cannot be appraised with
the same degree of accuracy as tang
ible personal property. For this rea-
son we are compelled to rely largely
on the declaration of the owner as to
the value of his property of this
character.
Experience in this and every other
state has demonstrated that when a
tax rate consumes more than 10 per
cent of the income from this class of
property it will not be voluntarily
listed for taxation. The tax rates
vary in different taxing districts of
this state from about one and one
half per cent to more than ten per
cent, the average for the state this
year being nearly three per cent. This
means that in some districts the taxes
on credits would amount to more than
the entire income from such property,
while the average rate in the state
would consume from 40 to so per cent
of such income. Under such conditions
the natural tendency is to conceal
such property from taxing officials.
and perhaps justifiably so. for no man
should be expected to contribute more
than half of his income for support
of government.
Realizing the dific lily of reaching
this class of property for purposes of
taxation under the prevailing system,
the legislature, in 1911, passed law
imposing fat rate Of three mills on the
dollar on such property. 1t was felt
that low uniform rate of taxation
would result in placing large amount
of this class of property on the ta1
rolls that had heretofore entirely
escaped taxation. 1t was contendec
that the average man desired to be
honest and that a low rate would
permit him to make truthful return
of property of this character that he
might own without the fear of having
most of it's income confscated fol
taxes.
The results the first year under the
new law have fully justified these
conclusions. The assessed value 0!
this class of property returned fol
taxation in 1910, under the old law
amounted to less than fourteen million
dollars, while in 1911 the amour
listed for taxation under the new Law
exceeded zone hundred and fifteel
million dollars, an increase of nearl!
$50 per cent in one year. In 1917
the assessed value of this class O
property represented only AZ pc
cent Of the bank deposits of the state
while the assessment of 1911 amount
to 49,. 8 per cent of such deposits.
Notwithstanding the low rate tht
total tax derived from this class o
property in 1911 was but slightly les
than in 1910. 81 of the 86 countie
of the state showing an actual in
crease, while SO of the ga cities AM
villages of the state having popula
ton of 1000 and over made subtsantia
gains in revenue over 1910. Not on
ly is the increase very gratifying
one. but the returns show conclusivel.
that the tax is much more equitabl
! distributed among the people than
was under the old law.
! 1t is confidently expected that tn
assessment this year will show con
I siderable increase over last year. Tn
purpose of the law is now better un
] derstood by both the people and tn
] taxing officials than it was yea
ago. The tax under the law is no
burdensome, it has been sustained b