The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-01-25
Mining Industry Bears Its Full Share in
Supporting State Under Present System
of Taxation of Net Profits.

uoU the system Oh ldAiHb lhS HSt PiN
M of mines and substitute for it the
direct valuation of all mining prop
ertv as a basis of assessment The
mining interests of Montana are nat
urally very much aroused over sys-
tenn that viii result in ruin to the in
dustry few days ago Conelius N.
Kelley vice president and managing
director Of the Anaconda Copper Mi
ming company, appeared before the
legislative committee having this pro-
posed measure in charge and present.
ed an argument against 1t which
should be read by taxpayers of every
mining state. After quoting from the
present law OF mine taxation in Mon
,tana, which is similar to that of Ida
no. and the constitution defining tax
alton and how it should be levied, Mr..
Kelley said in part:
Special Tax on Mines.
A perusal of the foregoing provi-
sions of the constitution and the stat
utes referred to- rresistably leads to
the conclusion that so far from hav-
ing in mind the proposition of ex-
emptlng mines from taxation, the pur
pose, on the contrary, was to impose
additional burdens of taxation upon
mines over and above that imposed
upon any other form or species Of
land
First, the surface is taxed as Is the
surface Of any other land. Primarily
the valuation placed upon the sur
face is at the price paid the United
States government which, in the case
of quartz claims, Is IS per acre, and
placer claims $3.50 an acre. 1t is a
matter of common understanding that
the surface of mining claims is usu-
ally rough, broken, mountainous, arid
lands that possesses no other value
than to serve the purposes incidental
to mine operation, but, note you, and
| wish specifically and emphatically
to call your attention to the PROPOSE
ton that the constitutional provision
is not without limitation so far as fix
ing the price at which the surface of
mines shall be taxed. Immediately
follows this clause: Unless the sur
face ground or some part thereof, Of
such mine or claim is used for other
than mining purposes, and has a sep
arate and independent value for such
other purposes, in which case said
surface ground, or any part thereof, so
used for other than mining purposes
shall be taxed at its value for such
other purposes, as provided by law"
Surface of the Land.
The effect of this provision is to
ing claims the surface of the land so
embraced within the mining claim
the moment that surface has any value
or is devoted to any purpose other
operation, If, for instance, the sur
face of land patented as mining
claim should be devoted to farm pur-
poses, Immediately that surface would
it is a fact of common knowledge
that what is now the most heavily
assessed property in the state of Mon
tana formerly constituted merely the
surface of mining claims, for the en-
tire city of Butte with the exception
of part of the original townsite, was
patented as mining property, and city
blocks that are now assessed at a
real estate value of hundreds of thou
sands of dollars originally paid only
the tax which the purchase price of
the land as mining claims fixed. So
that so far as the surface of mining
property is concerned, it is precisely
in the same situation as is any other
real estate-taXed at q price COM
mensurate with its value for purposes
incidental to the working of the mine;
taxed at its cash value under the law
the moment it is devoted to any other
purpose.
Beyond the surface what Is taxed?
The constitutional provision provided
"al machinery used in mining and all
property and surface improvements
upon or appurtenant to mines and
mining claims, which have value
separate and Independent of such
mines or mining claims shall
be taxed" This is the equivalent OF
saying tAat every dollars worth of
property that is placed upon the sur
face Of a mining claim, whether it is
machinery a mining improvement, a
building, or what not, shall be, and is,
under the law taxable as is all Of
the other property in the state.
Now | submit as fundamental
proposition that when you have tax
ed the surface of a mining claim at its
fun value for the purpose for which
it is used, or is capable Of being used
and when you have taxed the i'm
provements that have been made up
on that surface, you have gone so far
in the matter of taxation as the law
reaches any other class of property in
this state.
As to Crops.
The law does not impose tax upr
on the net proceeds of crops raised on
farm lands. You do not have to pay
SO much per bushel of oats, per sack
of potatoes or per ton of hay, for the