The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-01-20

uniform approval of those best versed
In the valuation of property.
Buildings are divided into classes
and through experts their cost value
aseertained. All buildings may be
subject to two kinds of depreciation:
I'D the actual physical depreciation
Iof the building, and (21 the deprecia-
ton by the property brought about by
the shifting Of the business and resi-
dent centers OF the city. For instance,
a business center may shift from a.
certain street and materially lessen
the value or property, for ONCE looms
and retail purposes, or it may en-
croach upon the resident district and
greatly depreciate property as desira-
BILE homes.
Our law directs the assessor to ass
sess at true value. In other states g.
uniform percentage of true value is
directed. So far as justice and equity
are concerned it matters little wheth-
Eer the standards Of true value, or a
certain percentage of true value is
used, but it is all important from the
standpoint of Justice and equity to as
sess property proportionately. The
law says full or cash value and 1T is
much easier to assess at 100 per cent
of their value than any proportion of
it. 1t is true that if all lands, for in
stance were assessed at 100 per cent
of their value they would also be pro-
p~ortionately valued, but the difficulty
is altogether one of a~scertaining the
proportion. Mr.. Somers says that so
far as land values are concerned they
could be ascertained correctly if two
things are done Ia. Obtain the
opinion OF the community. (2leApply
that opinion mathematically and
therefore uniformly.
THE opinion of the community in
any city nay easily be obtained by:
(a) establishing a unit OF quantity
Asking the community to express its
opinion by comparison. This opinion
may be applied to the valuation of spe-
cifc lots by: (al Finding out what
the mathematical relation OF value is
that exists between all possible
depth of lots, and corner and alley
enhancements. (h) Bringing into ex-
these various mathematical relations,
so far as to make disable the law Of
comparative valuation"
Gross Earnings Tax.
President Mcvey was unable to at
tend the meeting, but he sent the fol-
lowing communication:
The proposal on the part of the tax
commission to tax railways on the
gross earnings basis in this state raises
IN interesting question Of policy that
bshouid be carefully considered before
such a plan is adopted.
For q number of years the state OF
Minnesota has levied a gross earnings
tax against the earnings of railways
In lieu of all other taxation, and three
times it has been necessary, with the
change in the development of the rail-
Eway business to increase the rate,
through the medium of Legislative &C
tion stimulated by much lobbying. In
other words. Minnesota having adopt
ed this plan a member Of years ago,
has found it necessary to raise the
rate in order to secure the taxation OF
the railways on an equitable basis with
other property, Tt would appear from
this experience that, outside of ease OF
collection, the gross earnings tax does
not meet the changing and shifting
conditions in the state.
For several years the state of Wis
consin had q gross earnings tax.
which. however. has been superseded
by the present system, which has been
Iinvogue something more than a decade.
Under this plan the state tax commits
sion uses the expert valuation made by
the railroad commission as a basis for
assessment, and against the assess
ment is levied, the average tax rate
prevailing in the state. Part of this
Il G04Al kOGHs liz w. 6VNNCHs a - ~
however, is paid directly into the
treasury OF the state
After a good deal OF thought over
the matter, it seems to me that in
North Dakota a gross earnings tax
would not meet our needs as satisfac-
torily a sthe system which prevails in
wisconsin. Such a system is more in
accord with the general industrial
conditions existing here and there is
an a~daptability to these conditions
(which can never be found in a gross
learnings system.
I regret that I cannot be present in
person 70 discuss this important mat
ter, but I have asked that these views
set forth in memorandum form. b.
given to the tax association, in order
that at least one voice may be heard
to protest against the proposal to de-
: this state.