New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1912-07-31
TAXATION IN MINNESOTA
THE FOLLOWING IS ONE OF SERIES OF ARTICLES PUBLISHED
BY REQUEST OF THE MINNESOTA TAX COMMISSION
CRITICISM OR SUGGESTION IS CORDIALLY INVITED

: result in as equitable an assessment
as human judgment can produce.
The percentage Of the personal prop
erty assessment to the total assess
ment of the state has varied but slight
" in twenty years. In 1890 it was 49,
| per cent, in 1900, 1913 per cent, and il
1910, 1872 per cent of the total assess
J ment.
The difference in the actual value
OF the two classes OF property, rea
and personal, is probably very mucf
less than the difference in the assessed
value. It is difficult, if not impossible
under existing laws, to reach all forms
of personal property for purposes Of
taxation. This is especially true OF
so.called intangible personal property
No state has yet succeeded in doing
it, so that Minnesota Is not alone in
its failure in this respect
The assessed value of the taxable
property of the state more than doub.
led in the ten years between 1900 and
1910, the exact increase being 103 per
cent. The average annual increase
was 81 per cent. The assessed value
of land, however, increased more rap
idly than personal property, the former
showing rs per cent, and the latter
15.4 per cent of an average annual in
creast during this period b. ~
| State equalization ofpersonal proper
ty is much more complex than that of
real estate. The sales method affords
a reasonably accurate measure of real
ty values, but the valuation of personal
property is largely matter of good
Judgment, and an intelligent discrimi.
nation of changing business conditions,
supplemented by the use of compare
| tive tables, the grouping of districts
of the same general character and
wealth, and the use of the data furnish
from time to time by the census de-
partment of the bureau of commerce
and labor. a.. -, .. D.
To illustrate the use of the data
furnished by the census department,
the number and value of the domestic
animals in each county Of the state in
1910 was given in a bulletin issued
early in 1911. The total value OF such
animals in the state was fixed at
$156,771,855. The assessed value OF
domestic animals in the state in that
year was $4O,592,S51. Based on the
census valuation the average assessed
value in 1910 of domestic animals was
259 per cent of true value. Applying
the census valuation to the different
classes of domestic animals, we find
that horses were assessed on an aver.
age basis of 24.6 per cent; cattle 1926
per cent; sheep 21.1 per cent, and
swine at 100 per cent of census value.
Industrial and commercial statistics
are also compiled from government
reports, and are compared with the
assessors, returns of these class
es of property. Financial reports and
insurance carried are also factors in
equalization.
The valuations fixed by the census
department are not accepted by the
tax commission as absolutely reliable,
but are used in conjunction with other
data to determine approximate values
in different counties. .-~v,!~@
In equalizing personal property as
sessment comparative tables are pre-
pared showing the assessed value of
classes Of personal property In each
county for period of years, and the
per cent of increase or decrease for
the current year. Counties and
districts of the same general character
and wealth are grouped and compared
by classes and totals.
When a county shows any consider.
able decrease in the assessed value OF
personal property compared with the
preceding assessment, or for a period
of years, a special Investigation is ur'
dertaken to determine the cause OF
the decrease. If no cause can be dis
covered, increases are made in order
to restore the assessment to its proper
place, and to equalize it with the as
sessment of other counties of like
character.
The assessment Of bank stock is per-
haps the most uniform of any class OF
personal property in the state. State
and national banks are equalized on
uniform percentage of the aggregate OF
their capital, surplus, and undivided
profits, less real estate owned by the
bank.
The above is a general outline of the