The Birmingham age-herald., 1912-01-13
LOW ASSESSMENTS
 CAUSE DEFICIT Reiew of Tax Figures Show Interesting Condition GREAT DISP A RI T Y Elimination of the 60 Per Cent Basis of Assessment Is the One Great
 Solution to the Money
 Question
By pERRyMAN c. BETTY

Montgomery, January 1t.-(Speeial.)-lf all of the taxable property in the state
 of Alabama had been assessed py the
 state tax commission during the year lsll
 at it's full value the state treasury would
 be better off at this time by s2,S70,s2s
 rather than in imminent danger of an overwhelming deficit. The supposition is
 most interesting one in view or the
 fact that only financial cataclysm of
 some sort will result in the calling Of an extra session of the legislature, at
 which time it would only be called for the purpose of adding to the revenue of
 the state.
 Elimination of the 60 per cent basis of assessment, accordingly, is the one great
 solution to the money question, which may or may not have to De resorted to-
 Under the terms of Judge Nesmith's de-
 cision handed down few days ago in
 Birmingham, the clause of the revenue bill which authorizes assessments of prop
 erty on the 60 per cent masis is eonstitu-
 tional for the year of 1912, and so on until
 1t should be revoked. An appeal in the
 case will be taken by the state, the ulti-
 mate hope being that the supreme court will decide that the commonwealth has a constitutional right to fix any arbitrary rate 1t desires, but failing in this con struction of the law by the high court. only an extra session of the legislature and new revenue bill can give the state | the extra s2.500ooo spoken of.
 Review of the figures in the office of | the state tax commission shows a most | interesting condition. The annual report | of the state tax commission, which is now in the hands of the printer, shows
 that estimating all property at It's full value, or 100 per cent, there Is taxable property in the state 10 the value oi | $91l ,666,666, on which the legitimate rate of 1 taxation is e5 cents to the.S100. Under the | exaction of the revenue code however | the basis of assessment has been fixed al
 60 per cent of the full value. and on this | 60 per cent valuation the tax rate of 6s | cents is levied. Now, assessable property | in Alabama under the co per cent valu-
 ation amounts to $547. 100000. or $364, 0O0,0ot | Gin round numbers) less than would be | the assessed valuation on the full value | basis. As a consequence the state is los l ing 65 cents on every 500 in the third of a | billion dollars, or almost $2,500,000 an | nually.
 Owing to the fact that the 6 cents is divided for the benefit of schools, old sol- | diers and the general fund, each of these departments of government must suffer the failure to assess at full value. The schools, by the constitutional provisions,
 are allowed 30 cents, old soldiers are all lowed 10 cents and the general fund g cents on every s10O. But under the new | revenue law these funds must be pro- | rated, each, In all probability, being al lowed 60 per cent of it's usual allotment or the schools allowed IS cents, old sol
 diers cents and general fund 15 cents ! the total being 8 cents.
 | The difference between 65 cents and B cents is the amount of money that tn, | state is losing on every $10O of taxable
 property in the commonwealth.