The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1913-09-11
agree ON BASIS
FOR Taxing MINES


citation appeared before the Nevada
tax commission yesterday and an
agreement was reached regarding the
assessment of this industry for the
year 1913. The commission contends
that as result of this conference
the assessment of the mines is placed
for the first time in the history of the
state on a scientific basis.
The original constitution of Nevada
exempted mining ground from taxa
ton, but provided for the taxing of
the proceeds. Legislative enactment
prescribed the manner in which these
proceeds should be determined and re-
quired that they be taxed at the
general property rate. The statutes
provided as well for the assessment of
all property at full cash value, but in
Nevada, as elsewhere, the full cash
yaiae" of property rarely appeared
on the assessment roll, each county
assessing its property on the lowest
valuation it could accept to produce
the necessary county revenue on a
comparatively high tax rate. The
snines, early in the game, found a sat
6sfactory method for reducing their
assessment while still literally CON-
plying with the law, this being ef-
fected through the instrsmentality
of separate milling organizations
which, though really owned and c0a-
troiied by the parent mining company,
still contracted with il to reduce the
ores of the mine at a figure which abb
sorbed in greater or less degree the
taxable profits OF the latter. The
stockholders in the mine were, under
this system, making small book prof
its on the mine itself, but got SUBJ
stantial dividends from the mill which
were not taxable.
The law creating the Nevada tax
commission gave it greater powers
than had been conferred on the county
officers in the matter of allowances of
mining costs, and a conference was
arranged with the newly created Mine
Operators association to determine
what these allowable costs were to be.
The mine operators eontended at this
conference tbat lbe general property
tax should be exercised 10 the exact
letter of the law If they wess to be
assessed on their actual net, and cor
tended that the maintenance of the
Subsidiary mining companies was a
necessity IN their case to prevent their
carrying an undue proportion OF the
tar burden due 10 high tax rates grow
ing out Of low valuations on property
in general.
They proposed as n remedy, during
the period in which the tax commits
sion was bringino all property up to
full cash value, that they be allowed
an arbitrary charge of three dollars
per ton for 1913, and less amounts in
succeeding years, to equalize their as
Jsessment with the general property as
sessment. The f4x commission de-
eiiRed this proposal, but submitted a
counter proposition which was adopt.
ed after some discussion yesterday.
The terms of tins proposal were rough
ly as follows:
That the mining companies shssld
at once abolish the milling orgaHiza-
tions as far as returns of their ac.
counts TO the commission were con
cerned, and should in detail report
their actual expenditures and produc-
fioR covering the entire year;
That no charges for the conduct of
offices other than the mine Office
shOufd De AtoWed,
That interest on bonds and other
indebtedness should not appear as do
dHctions from the gross yield;
That the cost Of mine plants should
be reduced by deprssiation charges
over the whole life of the mine, and
not as lump charges Mt the time Of
construction, and that no investment
in plant should be allowed TO depre-
ciate to less than 90 per cent of It's
original cost during its operation,
when depreciation charges should
cease;
Thai the improvements should be
assessed at the same percentage of
full cash value ~ that at which 9th
er property in the eeuaty was assess |
ed; and finally
That to equaiize the bullion assess.
ment throughout the state with other |
assessments, that 60 per cent OF the |
actual net be paid this year.
II was further stipulated that the
tax commission would lend it's efforts
to a settlement of the unpaid or evad-
ed taxes of the various companies
during the past two years. The Gold !
field Consolidated and the Tonopah |
Belmont volunteered to settle ami |
,eabay With the counties on this basis
if acceptable 10 the latter.
1t is calculated thai the southern
counties will get considerable ~ ex
cess of one hundred thousand dollars
from the adjustment, and that the |
state will get its prorata, while all
ether mining counties will be bene-
ffsa,
Mr.. and Mrs. \, S,aEd, of Pleasant |
Vollau ara -unand.n0 fau dava m |