The Ronan pioneer. [volume] (Ronan, Mont.) 1910-1970, 1917-03-09
C0RP0RATI0NTA TAX
IS ONE PER CENT
GOULD BILL BECOMES A, LAW
DURING CLOSING HOURS
OF LEGISLATURE.
Will Increase Revenues of State by
100000 a Year; State Tax Com
mission Is Created to Investigate
Conditions and Make Report Two
Years Hence.
Legislative Bureau of
the Montana Newspaper I
Association, Helena

Inc legislative QeadlOCk endeu at
the beginning of the last week of
session, though there was no agree
ment between the houses, and there
continued some doubt as to the final
policy of the senate toward other
house measures after it should have
disposed of revenue, appropriation
and economy bills. The breaking of
the deadlock followed the passage by
the house of three revenue measures,
Gould's bills to tax corporations, eX-
press concerns and private car enter
prises. When these bills were sent
to the senate, the upper chamber
took them in hand and on the fifty
fifth day created a sitting commit
tee to select such house measures
from those sent to the senate as that
body should act upon under it's de-
clared resolve to accept none but
revenue, appropriation and economy
measures
The three revenue measures re-
ferred to constituted the most not
able legislation Of this session of the
legislature, and if they pass both
houses and are signed by the govern
or should bring in 100000 year
more taxes. The corporation bill as
it left the house bore tax Of three
quarters Of one per cent on all net
revenue of all corporations in the
state, but allowed such concerns to
arbitrarily deduct from their returns
to the state of net revenue $40, 1000,
which practically eXempts from the
operation of the tax all corporations
whose net income is less than that
sum. The original bill carried an
express exemption of $25,000. 1t
was objected that the exemption was
unconstitutional, and therefore the
exemption was stricken out and in
it's stead the arbitrary deduction put
in.
The trainers of the bill are of the
opinion that this will meet the con-
stitutional objection, though the
change is nothing more than tech
nicality, so far as it's effect is con-
cerned, and the view to be taken OF
it by court is yet to be ascertained
The bill originally also carried a one
per cent tax that was reduced to
three-quarters of one per cent in the
ways and means committee, where it
rested along with about dozen 9th
err tax bills for weeks. The measure
was not reported out until the fifty
second day of the session. On that
date it was brought out, and recon-
mended for passage.
1t was passed only after Higgins
had tried to amend it to make the
tax graduate from one-quarter of one
per cent on $4,000 net income tC
five per cent on income in excess OF
$5,000,000 annually, and Eliel had
tried to amend it to carry gradu-
ated rate from one quarter of one
per cent up to 100000 and two pei
cent on all net income over $1,000 :
900. Baldwin also tried to lift the
rate to one per cent. Though the
bill was debated all one afternoon
the house refused to bulge from the
committee recommendation. On the
fifty-seventh day in the senate, it was
reported for passage by standing
committee with the tax rate at one
and one-quarter of one per cent. Or
the fifty-eighth day the senate com
mittee of the whole dropped the rate
to one per cent, and reported it fol
passage.
1t was stated on the floor of the
house that the total net revenues O