The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-04-19
TAXING OF MONEY AND
CREDITS IN THIS STATE
How the New Law Works; Things
That Are Concealed.

Money and credits have always
been subject to taxation in Mime
sofa Prior to 1911 the state at
tempted to tax such property on the
same basis and at the same rate as
other classes of personal property.
but never succeeded in getting even
a reasonable percentage of it on the
tax rolls. The nature OF the prop
erty 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 mil
lion dollars, an amount conservative
| ly estimated TO be less than three
per cent of the actual value of such
property owned in the state.
New Law Is Adopted.
Realizing the impossibility of get
I ting such property on the tax rolls
under existing laws, the legislature
in 1911 passed a law imposing a fiat
rate of three mills on the dollar, or
thirty cents on each hundred dollars
of valuation, 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 a separate listing
blank and shall include money and
credits" as defined in the Revised
Laws of 1906
money" means all money owned
-, ;..
deposit in Il bank in this or some
other state.
What Are Credits?
Credits include all book ac-
counts. bills receivable, mortgages
and land contracts not recorded I'm
this state. promissory notes. bonds.
rents, annuities. and all other claims
or demands for money or other yalu-
able thing
The assessment is to he made at
the fair cash value of the properly,
and not at a percentage of such
value Debts cannot be deducted
from credits. The law requires each
person subject to the tax TO make
a sworn return of his money and
credits on the listing blank furnish
ed him by the assessor. Such return
must be made on or before June l.
Duty of Assessor.
The assessor is required to accept
the items of such list as true, unless
the person making the return re-
fuses to answer on oath all reason
able and necessary inquiries as 10
the nature and amount o. his prop
erty taxable under this law The
assessor may, however. place his
own valuation on the property so
listed when in his judgment the val
uation returned by the owner is not
The true and full value of the prop
erty.
If any person subject to the tax
refuses or neglects to make re-
turn as provided for in the law, the
assessor is required TO make an ar
bitrary assessment against such per-
son based upon the best information
he can obtain, and then add so per
cent to the valuation as n penalty
for such refusal or neglect.
His Best Information.
In making an arbitrary assess
ment 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 Ibis best information and be-
lief" and in such cases he must inn
pose the. penalty If 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 il ex-
cessive.
If II person was assessed for this
class OF property last year and falls
TO make return this year, the as
SCISSOR is required TO make an ar
bitrary assessment and cannot fix
the amount at less, but may make
il more, than the amount legally
assessed against such person last
year. Even. though n person claims
that he does not own any of this
class of property ha should never
theless return his list to the as
SCISSOR setting out such fact duly
sworn 10.