Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1912-08-16
TAXATION IN MINNfSQIa
TWENTY:NINTH ARTICLE BY TAX
OBSERVATION-DISCLOSURES EARN
"AS 1NGs TAXES

| Mas TAXES
The law provides two general mef@-
DDS of taxing the property of eorpuz-
atoms in Minnesota general Erpe.
erty tax and the gross earnings tax
The property of corporations engaged
in manufacturing and business eEtsz-
prises, and the property Of certain Pda,~
lie utility corporations, such as tsse-
graph and sleeping car companies, z1K
water, gas and electric light eem~
panies, is assessed and taxed on the aE
| valorem basis the same as like propefEs
Of individuals, Railroad and freigns
I line companies, and express and telE-
phone companies pay certain speeii66sES
amount Of their gross earnings in ksL
of all other taxes. Insurance companies
pay two per cent of their gross PcH
| miums.
The first departure from the gensra
! property tax as the sole system Of taxi
tion was made before the territory VIE
organized as a state. In 1867 the tsez.
ritorial legislature granted chartss
to the St. Paul and Pacific Railrosd
company, now a part Of the GrezA
Northern system, which provided thai,
in considerati ton of the grants and pzsiE
should pay into the treasury Of tie
territory or future state, three PEE
cent of it's gross earnings in lieu Of al
of other railroad charters were grant,
ed in that year carrying the three pen
cent gross earnings provision.
r.. -
| earnings tax was fixed by the legss-
lature. In that year constitutional
amendment was adopted which provided
that any change in the taxation Gf
the gross earnings of railroad coms
panies, either in rate or method, must
be submitted to the people for their ap-
prevail.
In 1903 the legislature proposed AT
increase Of the gross earnings rate
railroads from three to four per CERT
The increase was ratified by the peop1s
| in the general election of 1904 and be-
came effective in 1905.
! The special session Of the Legislatures
held in June of this year provided fu1
an increase of the rate from four to
five per cent, and if approved by the
people at the ensuing general electien.
the new rate will become effective IN
1913. It is also proposed to requi1e
semi annual payments Of the tax r.
stead of annual as heretofore.
The gross earnings principle Of tara
ton has been extended to telephone,
express, freight line and Insurance.
! coppanies. Telephone companies PSI
thrne per cent, and express and fretgha
line companies six per cent, of gross
earnings, and insurance companies two
per cent Of gross premiums.
On or before February LIST of each
year all companies subject to the gross
earnings tax are required to, file En
itemized statement with the tax com.
mission and duplicate with the public
examiner showing the gross earnings
for the preceding year.
The tax commission computes the Taz
and certifes the amount to. the stats
auditor who makes draft on the com-
pany for the amount Of the. tax and
places it in the hands .of, the, stauE
treasurer for collection.
| In case. OF failure to report earning
Ewithin the prescribed time the 't1s
! commission notifies the company ID
such failure, and: if the. dkfaplt cor
of such notice.: the commissioR prbeeed'
to fix the amount of the GROSS ea'rn
ings for the preceding year from tn
best eEiaence 1T Gan obtain and the1
d adds! a penalty equal to twenty; Aye ps'
tb cent Of. the Max for such ffailure:':s','
~ Will, theeexeeptiop 81 The til Is in
saraneeg premiums no distfib4tioh" q
i:they gross earnings tax is inAaes t.: II
municipalities. The receipts from thii,
source are credited to the revenue fund
b Of the! state and in 1911 eon1stitutes
about 81 per cent of the total stats
revenue derived from taxation..!">.::.%:r ~