Morris tribune., 1912-04-19
MONEY AND CREDITS.
Now Taxed at Only Three Mills
on the Dollar.
XII. I.-TAXATION OF MONEY AND
CREDITS,

CREDITS.
Money and credits have always been
subject to taxation in Minnesota.
Prior to 1911 the state attempted to
tax such property on the same basis
and at the same rate as other classes
of personal property. but never sue
ceeded in getting even a reasonable
percentage of it on the tax rolls.
The nature of the property is such
that it can be easily concealed. In
1910 the total amount of this class of
property listed for taxation was less
than fourteen million dollars, an
amount conservatively estimated to
be less than three per cent of the
actual value of such property owned
in the state.
Realizing the impossibiilty of get
ting such property on the tax rolls
under existing laws, the legislature in
1911 passed law imposing fiat rate
of three mills on the dollar, or thirty
cents on each hundred dollars of valu-
alton, such tax to be in lieu of all
other taxes on this class of property.
The new law. known as Chapter
285, Laws of 1911, provides that
such property shall be listed and
valued on separate listing blank and
shall include "money and credits as
defined in the Revised Laws of 1905.
Money" means all money owned
by a person whether in hand or on
deposit in a bank in this or some 9TH
er state.
"Credits" include all book accounts.
bills receivable, mortgages aid land
contracts not recorded in this state.
promissory notes, bonds. rents, an
nuities, and all other claims or de-
mands for money or other valuable
thing.
The assessment is to be made at
the fair cash value of the property,
and not at percentage of such value.
Debts cannot be deducted from credits.
The law requires each person SUBJ
ject to the tax to make sworn re-
turn of his money and credits on the
listing blank furnished him by the as
sesscr. Such return must be made on
or before June 1.
The assessor is required to accept
the items Of such list as true. unless
the person making the return refuses
to answer on oath all reasonable and
necessary inquiries as to the nature
and amount of his property taxable
under this law. The assessor may,
however, place his own valuation on
the property so listed when in his
judgement the valuation returned by
the owner is not the true and full
value of the property.
If any person subject to the tax re-
fuses or neglects to make a return as
provided for in the law, the assessor
is required to make an arbitrary as
sessment against such person based up
on the best information he can obtain,
and then add SO per cent to the valu-
alton as penalty for such refusal OF
neglect.
In making an arbitrary assessment
the law does not require the assessor
to have exact knowledge of the value
of the property; he is authorized to
make the assessment upon ''his best
information and belief" and in such
cases he must impose the penalty. II
the assessor should overvalue any OF
the items of the property the person
against whom the assessment is made
is not entitled to any relief. unless
the aggregate of such assessment is
excessive.
If person was assessed for this
class of property last year and fails
to make return this year, the as,
SCISSOR is required to make an arbitrary
assessment and cannot fix the amount
at less. but may make it more, thar
the amount legally assessed aims
such person last year.
: Even though person claims tina
he does not own any of this class o.
property he should nevertheless re
turn to the assessor setting out sucl
fact duly sworn to.
The next article will deal briefly
, with the reasons for changing tn,
law, and will give some comparative,
) figures of assessment and revenue il
1910 under the old law and in 191.
, under the new law.