The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-10-16
TAXATION or ZINES.

.ft ..'t t.N DC. al 'Nr hNH'd .
= Commissioners or Revenue aud Taxa
ton considering il ccuc'aIy. There arc
some points in the rcPou which re-
qoirc more specific and detailed
treatment, than the general considera
'iou given to ;he report as whole
One Of these matters OF detail is the
taxation of mines
The commissioners seem so be
anxious to get at some way OF making
mines pay more taxes than they pay
now. aud the report favors form
Of double taxation: that is. taxing the
mines on their net proceeds and also
taxing them on heir visible property
on assessment by tho county rs.
SCISSOR. The argument j. directed chief,
~ 10 comparison between the farm
taxation and the taxation Of mines.
and the opinion of the Commissioners
seems 10 he that the farms pay more
proPortionately to their value than the
mines pay. But clearly il the mines
nay on their net profits and also on
their visible property. they arc taxed
more than The farms, because the
farms arc not taxed at all on their net
proceeds. but only upon such valuation
as the county assessor sees fit 10 assess
upon them
The argument of the Commissioners
is based upon an assumption that is
not in the least practical, viz. that
the production of a mine is n constant
reliable quantity and may be de.
pended upon to last a, given rate for
long period of years. On this point
the Commissioners say:
As an illustration. say "A mine produces
| ono million dollars In net proceeds an
nually FOR one hundred wears TheoratIc-
ally at least. the first year its value is
one hundred million dollars. and It's aver
age value during It's life is fifty million
| dollars. Practically its first year value
| Is at least fifty million dollars and its
average value twenty-five million dollars
on only one million dollars Csur-
face lands, machinery and improve
mcnts are omitted from this Illustra-
ton negligIblej. The full value OF
the mine, therefore under our system.
pays taxes but once during the life OF
the mine. \ horse or cow on the other
hand. pays taxes on It's full value every
year of its llfe
Would the Commissioners. then. ia
vor the taxing of that mine on
hundred million dollars valuation, as
suming that 1t would last hundred
yearsG If not, why the illustration?
If yes, the answer is absurd.
But what mine has ever lasted thus'
A coal mine. perhaps, could come
nearer TO it than any other, and the
Commissioners, make no distinction be-
tween coal minessand any other mines.
can you depend upon stated pToduc
ton and profit for hundred years, or
for any given number of years
The Commission not only makes this
sort of assumption in its argument
with regard To the taxation of
mines. but il assumes that the
farmers are uniustlv Disseminated
against in taxation as compared with
the taxation OF mines. That sort of
argument, however. loses sight entire
a hundred wears or any other given
period, the mine IS exhausted and alb
solutcly worthless so far a. any profit
NAV be derived from it; but the farm
remains Just as valusble a. in the be-
ginning. while the mine is gone. 1t
would probably he wrong TO state that
the Commissioners have au idea that ii
would be a good thing to compel
the mine 10 pay as much as possible
while II i working at profit. for
the very reason that after while it
will be exhausted This, however.
would be no fair basis upon which TO
levy taxation. No property ought to
be undulv taxed merely because after
while Il will be of no value at all.
and it Is thought that the best thing
TO do is TO 'skin' it while it is pro.
ductire Nor is il any fair basis of
taxation TO assume values that NAV or
may not exist
IL should be remembered in this
connection, also. that the mining in.
dustry 10 one of great uncertainty. and
that where one mine shows net profits
and j. remunerative to its owners or
stockholders. hundreds WELD nothing
whatever. and the investment in them
OF labor aud Of money is absolutely
lost. II the taxation were applied
fairly and equitably on all mining
operations in the state from the dscov-
cry Of the proSpcctor 70 the whole de.
vclopmcnt and exhaustion OF the mine.
II viii be found that the debit side
would more than equal the credit side
of the ledger. and there would be
nothing left 20 tax.
But the mining Industry is an
enormously profitable industry to all
producers other than the miners. The
farmer gets profit from the mine
whether il has net profits or not,
by selling his products to the
workers in tho mine. So far as
that transaction is concerned, it
makes no difference 20 the farmer
whether the mine is profitable or not,