The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-01-15

or course. II the Institution has surplus
and undivided profit accounts Cfor I re-
Ter TO banking concerns) the proportion
6As tax is greater. But such accounts
being subject 10 taxation are rarely al
lowed TO accumulate by some institu-
tions. being wiped ont by special and
extra dividends. and in such emergencies
as arise about assessment time they are
cleared from the books by cross entries
that result in the obliteraton of the
profit and loss account and the CORE
spending reduction of the real estate and
stocks and bonds accounts. SO thsx. we
nave Institutions carrying on their books
listed as resources, real estate',. and
stocks and bonds accounts that repre-
sent but 81 fraction OF the value fixed
thereon for assessment purposes, and. |
mas add. we have mercantns institutions
carrying stock inventories FOR assessment
purposes that represent but a fracttsn
ot tnE actual value OF the merchandise
on hand While all this Is going on we
have other banking institutions that are
fair in carrying capital. surplus and an
divided profit accounts. with very little
real estate TO offset, and such institu-
tons arc assessed in proportion 10 value
very close TO real estate.
From the following figures you will gain
an idea, also, of the manner In which
individuals escape taxation OH money and
solvent credits. According to national
and state consolidated bank statements
published near tho close Of the year 1911,
and Just prior to the time FOR levyng
1872 assessments there were commercial
and savings deposits in the national and
state banks amounting 10 *55.S51. .4l93I.
yet SG1OO,69o only OF money and solvent
credits we're returned in the entire state
Tor assessment purposes in 1912.
What applies TO banks and individuals
who have bank deposits. In lodging tax
alton. applies equally 10 other corporate
Interests in the. stale that follow the
tax agents, with the result that while
visible property, Including real estate and
improvements and visible personal prop
crty. fall under . heavy burden OF taxa
ttcD- t,e invisible. OF so called intangible
rcvenue-producing Investments. escape
bearing. their Just proportion. The eX
, press object Of one OF the constitutional
amendments Cln line with the most ad-
vaDced ideas on taxation OF int3 3ngiblc
proDerly) was to secure exemptions for
the oVerbuITened taxpayer whose proper
u, including personal property, is wholly
visible. and 10 so classify intangible, low
intcrest-bcarjng securities that this prop
erty. which now wholly ESCAPES taxation
(nlthou2h the law provides for its taxa
tIon), could be assessed at a lower rate
and thereby become q factor in bearing
the burdens Of taxation for the state.
The fact is, that the only property OF this
nature which cannot escape taxation is
property In probate. where the entire
property, including money aud Interest
bearing securities, is assessed at a uni
| form rate, In states where the system
has bcen adopted. practical experience
has demonstrated that evasion has been
TnimmZed and even at a low tax rate
the revenues have been increased while
tho moral phase Of the matter has under
| gone decided change Tor the better
| II being no longer necessary for business
ethics To differ from ethics governing
| taxation.
| ii Is moro bosh for people to inform
! YOU that the state board OF coualza ton
can remedy This condition, While the
! board bias power and does nX tho value
| Tor assessment on our public utility cor
prratiuns aud the net proceeds OF mines
what can the board do when il finds a
| county assessment on real estate varying
| from 10 10 30 per cent OF actual v8lue@
! II hos power only 10 equaiize between
counties and has no power to Cqualize
| individual assessments Within the coun-
! Is. II Is obyiouP. therefore. that an ar
! bitrsrY Increase in q particular class Of
property within the county will but en-
plastic the nufairncss OF the assessment.
cent its actual value must oe rglsed along
| with the properly In the same clsss as
/ sesse1 ot 10 ner cont its actual value.
| and. taking the two figures as sample
! 90 per cent 81 would be paving on a al
/ Per cent basis of value. while the low one
| would oe paving on :he basis OF IS per
cent, and: thus the Ubiquitous condition
would he exaggerated.
| The unfairuess of the yytem falls rar-
! tlcuiarly on the state in it's interest IN
| taxation. Tho local assessors are prac-
| tlcaliy mo sole BrbiterS OF individual OBJ
| legations of citizenship Insofar as those
obligations Involve responsibility in pro-
mover be permitted 10 prevail
| Unreasonable p5rtlcipat ton In the pro-
| ceeds of the public utilities tax places
| some counties in such tins ncial circum-
! stances that local asses sInenis aud ieyles
arc ridicnjously low, while total lack OF
! participation By certain other counties
| lrecessltates a high percentage OF value
/ for. assessment purposes nud a high rate
| OF lovy. In The irSt instance low assess
| mcnts reduce the income TO The state,
oycIf though expenses of local govern
rncut may be easily mot with the revc,
uues under reduced assessment and
levies. Ia the second instance the peo-
lple are bearing an unjust tax in pro7or-
ton 10 tho vsluo OF their property Yet
Tho county that gets tho largo Income
from the public utility tax and pays pro-
portionately small tax TO Tho state par
| ucpstes fully IN the distribution OF the
! 1-niii district school fund and tho tulll
high gchool fund set aside from, the 20
mill state ievy.
I have already stated that u,uch OF
the study and research or the commIs-
with The expectation that the propcoeJ
| amendments would bo accepted and rs
preliminary report was based largely on
| the expectation. The amendment failed,
however. and the commission cannot Mt
this time place before YOU FOR YOUR Com
sideration the bills originally intended 10
reconstruct our taxation system. Ha re-
port With suggested legislation yin he
presented 10 YOU. The report Is cbmpre-
henSlve and goes into tiJls matter nf tax
alton more fullv than amy othet state
document OIL this subject. II Is proper
that l should call Your attention 20 the
fact that n Is for th's commissioIj. pur-
suani 70 the provisions OF the ikB'C bv
whice n was created. 20 report e5' YOU
Is findings and recommendations irciat .
iuB tn this important matter. TII coul~
I mcgi wjhcO / make Is. made frofn the
tsi&dpcfut pl one who has had bpi,ur-
] idHry III observe jle practical npdra ton
tot oul f3Huuon aln, revenue iawA Ny
iintcree = tds nIatlcr is not so}fish--
rcithg tbc standpoint OF lpublic