The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-04-26
MONEY TAXED UNDER
THE new STATE Law
The Flat Rate of Three Mills On
Dollar Is Imposed.

In 1911, as explained in the pre-
ceding article, somewhat radical
change was made in the method of
listing and assessing money and
credits in this state. For more than
fifty years Minnesota had been try
ing to reach such property for pur-
poses of taxation with the same ma.
Chinery and i'm the same manner it
taxed tangible personal property.
Two causes have largely contrib
uted to failure to reach this class
of property for purposes of taxation
the intangible nature of the prop
erty and the high rate Of taxation
that prevailed in most of the taxing
districts of the state.
Property Easily Concealed.
Such property, known as intang-
BILE personal property, can be easily
concealed, because, unlike live stock,
or manufactured goods, or the goods
and wares of merchant, it is not
susceptible to the touch or eye of
praised with the same degree of ac-
curacy as tangible personal prop
erty. For this reason we are COM
PEELED to rely largely on the declara-
ton of the owner as to the value
of his property of this character
Experience in this and every other
state has demonstrated that when a
tax rate consumes more than 10 per
cent of the income from this class of
property it will not be voluntarily
listed for taxation. The tax rates
vary in different taxing districts of
this state from about one and one
half per cent to more than ten per
cent, the average for the state this
year being nearly three per cent.
This means that in some districts
the taxes on credits would amount
to more than the entire income from
such property, while the average
rate in the state would consume
from 40 to 60 per cent of such in
come. Under such conditions the
natural tendency is to conceal such
property from taxing officials, and
perhaps justifably SO, for no man
more than half of his income for sup
port of government.
Three Mills on Dollar
Realizing the difficulty of reach
ing this class of property for pur-
poses of taxation under the pre-
Vol veto In lnui lnf rtrn in,
1911, passed a law imposing a fiat
rate of three mills on the dollar on
such property. IL was felt that a low
uniform rate of taxation would re-
suit in placing a large amount of
this class of property on the tax
rolls that had heretofore escaped tax
alton. 1t was contended that the
average man desired to be honest
and that low rate would permit
him 10 make truthful return of
property of this character that he
might own without the fear of hav-
ing most of it's income confiscatcd
for taxes.
The results the first year under
the new law have fully justified
these conclusions. The assessed
value of this class OF property re-
turned for taxation in 1910, under
the old law, amounted to less than
fourteen million dollars, while in
1911 the amount listed for taxation
under the new law exceeded one
hundred and fifteen million dollars,
an increase of nearly $50 per cent
in one year. In 1910 the assessed
value of this class of property rep
resented only Az per cent Of the
bank deposits of the state, while the
assessment Of 1911 amounts to 33.S
per cent Of such deposits.
Notwithstanding the low rate the
total tax derived from this class of
property in 1911 was but slightly
less than in 1910, sixty-seven of the
eighty-six counties of the state show
ing an actual increase, while fifty
two of the sixty-four cities and VII
lagos of the state having a popula-
ton of 1900 and over made substan-
tial gains in revenue over 1910. Not
only is the increase a very crafty
ing one, but the returns show con-
Clusively that the tax is much more
equitably distributed among the peo-
pie than it was under the old law.