The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-12-13
TAX COMMISSION
REPORT IS ISSUED
RECOMMENDS CHANGING GENER-
AL PROPERTY TAX TO CLASS
flied TAX
EFFORTS OF 2 YEARS WORK
Permanent Non-poIiticai Commission
of Three Members Which Would
Have Supervisory Powers
is Suggested

Helena.-After working diligently
for nearly two years, the state tax
commission has completed its final re
port of its findings and has turned il
over to the state board of equaliza.
ton and to the coming legislature fol-
such action as is deemed necessary.
The board, which is composed of
Charles r.. Leonard of Butte, William
Lindsay of Glendive and David Hilger
of Lewistown, with John Edgerton as
secretary, recommends among other
things:
change of general property tax to
classified property tax.
The creation of a permanent tax
commission of three members, nom
political in character, and qualified
with supervisory powers.
A constitutional amendment placing
the duties of the state board of equal
izatiOn in the hands of the tax com
mission, and the assessment of public
utilities by the state tax commission
on the same basis as railroad assess
ments.
An estimate of the true and full
value of taxable property shows the
wealth of Montana is around two and
one-half billions of dollars. The an
nual needs of the state, counties, cities
and school districts in revenue is APP
proximately s22,00O,O0O.
Revenue to Fall Off.
The revenues of the state will be
reduced about 100000 when the new
prohibition law becomes effective
January 1, 1919, and the revenue may
be further decreased in the immediate
future because of the constitutional
provision that the present rate or levy
of two and one-half mills automatical
fy drops to two mills when the as
sessed valuation shall amount to
$600,000,00O. When this limit is
reached the revenue for state pur-
poses will be reduced one-fifth or
100000. The commission believes
this loss will be more than regained
If its recommendations are adopted.
The commission confesses that the
matter of raising large sums for main
tenance of the state is difficult prob
lem, especially in making assessments
so that no undue burden shall be i'm
posed.
"Cash VaIueD Dead Letter.
Montana has what is commonly |
known as general property tax
which means that all property is re-
CURED to be assessed equally and pay |
the same rate of taxation. 1t is Also |
according to the code, to be assessed |
at sits full cash value"
1t has been generally understood |
that the constitution requires that |
be taxed ON the basis of such
assessment, but the commission be-
lieves this is an erroneous impression.
The provision as to full cash value"
accordingly has become q dead letter
not only in Montana but in other
states which attempted to try it. The
provision does not tend to uniformity
in taxation.
There is great lack of uniformity
not only between the different counties
but between individuals. About the
only properties in Montana assessed
at full value are the net proceeds of
mines, and moneys belonging to wild
)ws and orphans and executors of
estates which are revealed by court
Assessments Irregular.
GAS matter of fact" continues the ,
'eport, "our investigation shows that !
and is assessed at about 80 per cent; !,
.attle at 45; sheep 40; horses and
Mules 81 hogs IS; bank stock S. and !
'ther forms of property at varying per- !,
entages. In the face of positive statu-
DRY enactment, requiring assessment .
t full value and In the face of instruc- r
ion by the attorney general, the as r
essors meet every year, resolve them
elves into a sort of legislative assem- =
ly and proceed to fix the values at =
'hich different species Of property :
hall be assessed. :,
".The examination shows also that In :.
pite Of this meeting, the assessments !.
! different counties show great lack
uniformity.
Not only is there a lack of uniform :,
y but it is clear that considerable pro- :,
ortions of taxable property escape
xatiOn. Moneys and credits are hard j.
! touched. Less than $3,O0O,0O of the :,
asst amount of moneys and credits get ,s
/ the assessment books. :,
Much Tax Evasion. .,
'There is a general evasion of the ps
xes on this species of property" says m
EREAL WORKERS GRANTED &c