The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-02-10


average gross production for each per-
son denpedent upon the mining indus-
try is approximately $1,000, while the
average gross production for each per-
son dependent upon. the farming in
dustry is Approximately $500. The
average gross production for each per-
son dependent upon the railroad in
dustry is approximately s575.
Gross inequalities.
In making these estimates we have
treated each industry as an entirety.
We find that there is great inequality
in the assessment in the several
counties Of the same class of property
such as land. livestock, banks. etc,
which are assessed on a much higher
percentage in some counties than in
Others. That Is matter, however,
which is now subject to correction by
the state board Of equalization under
the recently enacted constitutional
amendment. On the other hand, where
an entire industry or class of property
escapes it's fair burden Of taxation the
matter becomes a proper subject for
legislative action. The comparison Of
the foregoing figures has led your
committee to believe that the large
mining companies, the hydro electric
companies, the express companies and
the Pullman car companies are not
paying their proportionate share of
the states taxes. We are also of the
opinion that all these companies are
abundantly able to respond to the
needs Of this state in the matter Of
revenue without injury to their bust
ness or in any manner jeopardizing
the general welfare Of the people Of
the state.
With regard to the assessments on
banks we find the average for the
state to be 49.6S OF their total capital
stock, surplus and undivided profits.
but this committee ascertained that
the assessments in the various
counties ranged from So to IS per cent.
We believe that the railroad COM
panies Of the state are paying their
proportionate share of taxes, but
would suggest that if the state board
Of equalization increases the valuation
of other property a proportionate IN
crease should be made in the assessed
valuation of the railroads.
Some Do Not Pay and Should.
Many other inequalities in assess
ment and taxation, can and should be
corrected. A great quantity of wealth
within the state escapes all burden OF
taxation. such as wholesale implement
houses, to which reference has here
tofore been made; moving picture
films. and private fortunes not repre-
scented by tangible ri u Or, personal
property A proper Performance of
duty by the assessors Of this state will
no doubt increase the total assessed
valuation of this state for the comm 6
year by s150,O0O,O00 or. more.
Under our constitutional provision
which automatically reduces the levy
for state purposes to two mills, when
the valuation reaches $500, 100000, this
increase in assessment will not yield
any additional revenue to the state
We think cognizance should be taker
to the fact that the products of The
state are selling at the highest prices
ever commanded in the states history
| and that we are enjoying a degree Of
prosperity heretofore unknown. This
being true, it would not be an exercise
of good business Judgment to postpon,
| into a doubtful future the meeting o.
| any of the states just obligations.
Conclusions.
! After a comparison of the foregoing
figures your committee has reached
the conclusion that suitable legisla
| ton should be enacted to reach thos,
| business enterprises which are show
herein to pay little or no taxes. ais
| that some method should be employee,
to cqualize the great disproportiol
herein shown between the value AM
income Of the mining industry and tn
hydro electric companies and the valu
and income of the other principal in
dustries Of the state.
We are further of the opinion tina
these Inequalities should be correcte'
before the adoption Of any income O
license tax, therefore any plan whicl
contcmplates the raising Of require
revenue should first provide for tn
levy and collection of such tax o
license as may be necessary to eQuaiiz
the several industries; that II afte
such equalization has been provide
for there still remains a deficienc
that deficiency should be met by
tons.
Respectfully submitted,
THOS. KANE.