The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-05-30
TAX On MACHINERY SOUNDS THE WARNING MEETS TRAGIC DEATH
State Manufacturers ARGUS City Officials Send Strong
ed Over New Interpreta Statement of Excise
tion o u Laws. to Men, Death.
ASK COMMISSION FOR HEARING mo LICENSES TO Be P SUFFERING FROM FEVER
dP Places ownmgR ProntP o
o
+EohE ~ rI
State Manufacturers Arous-
ed Over New Interpreta-
ton of TaA Laws.
ASK COMMISSION FOR HEARING
Ruling Said to BE Hurtful to Corpora
lions and Places Those Owning Real
Estate at Great Disadvantage.
Manufacturers to Fight Enforcement.


Close on the heels of the income tax
problems, which have caused more dis
satisfaction throughout the state over
this law than any other passed by the
in years, comes ruling on
the taxing of machinery which has
aroused the ire of manufacturers
throughout the entire state. Machin-
cry heretofore has been taxed as per-
sonal property but under the new rul-
ing machinery in plants where the
company owns it's own building is to
be assessed as real estate. If the
building is leased the machinery is as
sessed as personal property.
Under this ruling the man who
leases his building is money ahead Of
the man who has added to the wealth
Of the city or state by erecting his
own building. The latter can only
deduct the taxes on machinery with
that Of other real estate from his in
come. The man who is operating in
a leased building has his machinery
assessed as personal property and he
can take his personal property receipt
and turn it over in payment of his
income tax, dollar for dollar,
Two corporations with incomes of
100000 each have machinery to the
amount of $4,000. The corporation
owning its own building can, under
the new ruling, which makes its ma
chinery part of the realty, only deduct
the tax on the machinery with other
real estate taxes from its income. The
corporation operating in leased
building can take the personal prop
erty receipt and turn it in against its
incom etax, dollar for dollar.
Since the ruling became known the
Merchants and Manufacturers Associ-
ations have been deluged with inquiries
from manufacturers Of every class
throughout the state protesting against
this injustice. 1t is held by good at
torneys to be unconstitutional and it
is believed the new rule will not stand
for a moment when taken into court.
as it will be in case the commission
does not reverse its ruling.
The tax commission has been asked
by the associations to come to Milwau-
-kee for meeting with the manufact-
urers for discussion of this matter.
Together with the request are a num-
Der of specific questions on which in
formation is desired.
Secretary Bruce, Of the Merchants
and Manufacturers Association of
Milwaukee, has received a reply from
the commission signed by 7. E. Lyons,
in which he denied that instructions
had been issued to assessors regarding
the assessment of machinery in such
broad terms as stated. Mr.. Lyons,
however, called attention to a note
which had been added in instructions
to assessors, and in this the commits
sion seems to hold exactly what is
complained Of, that machinery is to
be considered as fixtures and therefore
part of the building and cites deci-
sions, on small detachable fittings to
houses which have been declared part
of the building by the supreme court.
further efforts will be made to ar
range another conference in Milwau-
kee between the members of the tax
commission and manufacturers who
have been hit by the ruling, and it is
expected that such conference will
be held within a short time.
Manufacturers say that they will
contest the ruling in the courts, if not
changed, on the ground that it is rank
injustice and unconstitutional. They
say it is a penalty on thrift and I'M
reasonable in every way.