The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-12-14
MILLIONS MAY
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the payment of the bulk of taxes pre-
viously levied in Kansas, under pres
ent interpretations of the court rul-
ing. Many lumber companies, eleva-
tors jewelry concerns, piano manu-
facturers and similar corporations will
also be exempted from local Kansas
taxes and may pay only in the district
in which the parent office is located.
The scope of the decision. in the
Kimball plano case is so far .rea ching
that it may be necessary to revise our
entire present system Of taxation of
sales accounts" said Samuel T. Howe,
chairman of the state tax commission.
court, but viewing the matter as 1t
stands under the decision, there is no
doubt that the state will lose large
sums in taxable property. The local
communities where foreign COM
panies compete with local concerns
thru branch establishments, will lose
heavily in assessable properties. The
commission has no manner of deter
mining these amounts, but the total
will be a staggering sum.
May Ask Rehearing.
81 understand that efforts will be
made to secure a rehearing or new
trial of the case. The commission is
ton. But under the decision az it
stands, the only relief seems to be
thru action by the state legislature.
Leaving the case in its present light,
it Is quite certain that the legislature
will be asked 20 amend the law in a
manner that will permit the local dis
Gricts and the state to receive the just
benefit from taxes on property which
must seemingly be removed from as
sessment officers under this decision"
There is little tendency to conceal
the deep concern which is felt in state
house circles regarding the decision of
the supreme court. As the matter now
stands, the state not only faces prob
able decided increase in the amount of
taxes to be raised in 1917, but the ne
cessity of providing the money from
a reduced valuation.
The Kimball case went to the SUI
creme court from Shawnee county,
where an effort was made to collect
taxes on sales notes taken by a local
office, but sent to the parent office in
Chicago The notes were recorded
and collected here, but the piano COM
pany refused to pay taxes on the
notes. The county then levied on the
companys bank accounts. In test
suit, the Shawnee county district court
held that the notes were assessable
here The supreme court, however,
reversed the case and declared that
notes taken by a local company and
sent to a parent company were assess
able only at the home of the parent
company
Whitmore Explains 1t.
F. P Whitmore, local manager for
the KimbalI company, declared his
company was not seeking to evade tax
alton in their suit. Rulings adopted
bv the state commission, however.
were declared by Whitmore to con-
stitute double and even triple taxa
ton.
I'VE pay taxes in Kansas on all of
orr stock here" said Whitmore. Fol
lowing sales, instruments are assessed
and taxes paid by the purchaser. I'm
der a ruling of the United States su-
preme court, we are obliged to pay
taxes on our notes in Illinois. The
commission ruled we must pay here
We don't care whether we pay in
Kansas or in Illinois We do not seek
to evade the tax, but do complain of
a system of double taxation"