Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1912-08-16
IAXAI |! [! IlO|HlN J \ ! MINNIE :! !!
T,15gENTxsSI1TH 'ART1c1E BIZ fH
GROSS EARn- ~ p

The property of corporations engasaa
in manufacturing and business eatuE
|prises, and the propertyo of certain pd11l-
lie utility corporations, such as teae.
graph and sleeping car companies, 1nN
water, gas and electric light COM;
panies, is assessed and taxed on tho n
valorem basis the same as like propRty,
Of individuals, Railroad and freigHs
line companies, and express and te1s-
phone companies pay certain speeifaE
amount of their gross earnings in Esu
of all other taxes. Insurance compaRiR
pay two per cent Of their gross pr4-
miums. :, ~
The first departure from the genan&
property tax as the sole system Of taxa
tion was made before the territory VAN
organized as state. In 1857 the tor"
ritorial legislature granted charter
to the St. Paul and Pacific Railroad
company, now a part Of the GTed
Northern system, which provided th11
in consideration Of the grants and priv
ileges therein contained, the company
should pay into the treasury Of tks:'
territory or future state, three per
cent of its gross earnings in lieu Of al
other taxes and assessments. A numbeR
of other railroad charters were grant :
ed in that year carrying the three Per
cent gross earnings provision.*:
T. Prior to 1871 the rate sofsthe gross
earnings tax was fixed by the 3eg1s-
lature. In that year constitutional
amendment was adopted which providea
that any change in the taxation Sf
the gross earnings of railroad ,con- :
panies, either in rate or method, mu1t 4
be submitted to the peopls for their ap-
proval. " ::
In 1903 the legislature proposed IT
increase of the gross earnings T1te
railroads from three to four per :ceu4&-s
The increase was ratified by the peopdo
in the general election of 1904 and: be-
came effective in 1905. : ~" /:
The special session of the Legislators
held in June of this year provided fsf
an increase of the rate from four to
five per cent, and if. approved by tass
people at the ensuing general electisN
the new rate will become effective IN
1918. It is also proposed to requi1s
semi.annual payments Of the tax m:
stead Of annual as heretofore. ::
The gross earnings principle OF ta13r
I express, freight line and insuranne
%4s04 &e4ktAS1s@& - OA03eAsVA0s SsSAsA1'sAAASO
ftths5paecent and express and frst
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. gress
:earnings tax are required to, file .1n
itemized statement with. the tax com
mission and a, duplicate with the public
examiner showing the gross earhinas
for the preceding: year: ,,'.>.
The tax commission computes the tax
and 1certifies the amount to-, the state
I auditor who makes draft on the com
pany' for the amount 2oAhe tax aAd
places it; in: the hands. the stats
treasurer for collection. ~
In case. OF failure to report earnings
l,within the: prescribed time. the l,tax
commission notifies the, Company ts&
i such failure, and If the d{faplt foa-
j itinues font thirty days; after the AefvtdB
of snch notice, the connlissi6H pfteSedu
to fix the amount Of the gross ,Parn-
Eings for the preceding year FROM tze
i beat eEiAence tit yean obtain btain and then
II fsaadere penalty equal: :tQ Twenty :6Xe pr
tb cent, ef the Nfax5 for "sueb" fafluf4s :
IL vexeeptioR ,9f thA us t &c in
ars9ee premiums l} n9 tdistbib{$atiSHh tiHfs d
municipalities. The Receipts 1ffom this
source are credited to the revenueb fund
Il off, the; state, and in, I'LL eonstitutea
d Esbout 81 per cent of THE: ;t6tar stats
|zeveppe derived from tAxAtioHnt 81 s oHni5GeT t"|}:4
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