Bisbee daily review., 1915-04-01
WANTS SESSION ID TAKE UP
 MINE TAX
Writer In Gazette Discusses The Subject Of Taxing Mines In Arizona And Emphasizes Need 0t Laws

The law under which were taxed the mining interests if this state ex- Dired by its own operation while The legislature was in session. The law had been enacted by the last leEis lature after its passage had been rec commended by Gov. Hunt in his mes- sage.
 Few men know much about taxa tion. Paying their taxes. they grumble about the amount, and let it go at widely discussed and false impress widey discussed and a false impros sion has been created in the public mind A brief review of the bill and Its provisions will be in place
 The tax commission was wished upon the people of this state by the first legislature, and as was explained to the people during the late cam paign by candidates for reelection, they have quite succeeded in lower ing the tax rate and raising the taXes Co the present dizzy height and, quot ing Jim Goodwin, That's going some"
 In the states where mines are op- erated various methods are employed in determining what is the just share of the taxes to be paid by the mines.
 Michigan alone has adopted what is known as the ad valorem or physical valuation of the properties assessed, but tho physical valuation is in real ity but small factor in the assess ments, though the nature of the de- posits by reason of a certain similari- ty, lend themselves more readily to physical valuation than in Arizona, where the deposits differ widely in their physical makeup. Under the law as applied here in Arizona all min ing claims were classed as either pro- ductive Of non-productive mines A productive mine is briefly, under the law. one which after deducting the expenses of operating does yield a net profit to the owners or operators This applies also to all contiguous mines or claims under one ownership. Detailed statements from owners or operators. Co the tax commission, of ! location. ownership etc, together with number Of tons of ore mined sold or treated during the period GOV. cred by the statement, character of ore. kind and yield of mineral de. tailed cost of production, transporta uor treatment and marketing. The | a,l Irovided that the tax commission | should. from such detailed statement i determine and compute the gross pro duct and its value in money for the proceeding year. and to determine tho l net proceeds after deducting all mon ! eys paid for necessary labor. machin 1 cry and supplies needed and used All moneys expended for bettermcnt. in and about the mines, for treatment and reduction, for repairs and better mCnts to mills and reduction works
 etc. etc The only expenditures mol allowed apparently, and so specified include purchase price of mine. iI
 real estate. new mills and reductioI
 works and the salaries of anyone no
 actually or consecutively employed il
 working the mine or in personal sup eriutendence or management thereof in the state. The value of the produc
 must be based on reported marke value of such product in New lorl
 city during current year After sucl
 computation and deductions the ta'
 commission fixes valuation upon th
 mine for the purpose or taxation lo current year by adding together tou
 times the value of the net proceed
 and an amount equal Co 12 per cen
 of the total value of the gross pro
 ceeds of such, and upon such yalua
 ton the assessment is made, and tn
 same rate of taxation is levied as levied on other property in the sam
 county To illustrates Value of th
 total or gross production of min
 is S1 .OOO.0 .0OO while the net proceed after deducting an expenses is value
 at SlOO OOO; the commission adds l
 per cent of the gross valuation of prC ? duet. or one-eighth of Sl,000,000, O S125. .0OOO. to four times the net yalu'
 or S4OO.O0O. a total of S525,0O0, whic ! is the taxable valuation of the mint
 Under this law the mining interest
 of this state paid 357 per cent Of th
 taxes and the law was considered iai ! and just. Though it did not quit cqualize among the mines, yet it cam near enough to be acceptable to a f concerned except to two of the men |, bers of the tax commission. The
 claimed that only a limited amour
 expended In developing could
 charged as current expenses; als that taxes could not be charged as e
 pense. nor the payment for damage
 to workmen employed in operatir l. the mine for personal injury suitere , while SO employed This interpret
 ton and arbitrary ruling resulted
 some feeling and in one case in lil l- gation. It was generally concedf IT that the law was fair and an-act CT
 bodying all the salient features WI introduced in the house, and rigl
 then the trouble began. The bill WI