The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-01-22
EXCISE TAX ON
CORPORATIONS
ISLEAGUE PLAN
Would Assess All Business Insti-
tutiOns Fifty Cents on
$1,000 Capital
FARM CONCERNS EXEMPT
Big Institutions Owned by State
is Also to Escape Burden
of Assessment

Every corporation, Joint stock com.
many or association, now or hereafter
organized in the state for profit and
having capital stock represented by
shares or issuing bonds shall pay an
nually a special excise tax with re-
spect to carrying on or doing business
in the state by such corporation, etc.
during the previous calendar year
equivalent to so cents for each $1,000
of the fair value Of its capital stock
or bonds issued; and in estimating
the value of capital stock, the surplus
and undivided profits of such corpor-
alton, joint stock company or associa.
ton shall be included. The amount
of such annual tax shall in all cases
be computed on the basis o. the fair
average value Of the capital stock and
bonds for the preceding year; provid-
ed, that for the purpose of this tax
an exemption of $4,000 shall be al
lowed from the capital stock of any
such corporation, joint stock company
or association
i...,,@ Going After the Money.
/, This opening section Of House Bill
No. AZ, introduced by the taxes and
tax laws committee Tuesday, reveals
one OF the methods by which the pres
ent state administration hopes to
close the gap between revenues and
expenditures, which will be something
over $1,00O,O0O for the ensuing bien.
mum.
Corporations organized under the
laws of other states or foreign scoun-
tries but doing business in North Da'
kota shall under this bill pay an an
nual excise tax of 80 cents per thous'
and on capital actually invested IN
the transaction of business in the
state; provided, that in the case OF
corporation engaged in business
partly within and partly without the
state, investment within the state
shall be held to mean that
proportion Of its entire stock
and bond issues which its business
within the state bears to its total
business within and without the state,
and where such bushes within the
state is not otherwise more easily
and certainly separable from such en-
tire business within and without the
state, business within the state shall
be held to mean such proportion OF
the entire business within and with
out the state as the property of such
corporation within the state bears to
it's entire property employed in SUCH
business both within and without the
state: provided, that in the case OF
railroad, I telephone, telegraph, car or
or freight line, express company or
other common carrier, or a gas, light,
power or heating company, having
lines that enter into, extend out of, or
across the state, property within the
state shall be held 70 mean that pro
portion of the entire property OF such
corporation engaged in such business
which its mileage within the state
bears to its entire mileage within ana
without the state. .-- ..
These are Exempt.
The bill specifically exeppts from
this excise tax labor, agricultural or
horticultural organizations; mutual
savings banks not having capital
stock represented by shares; fratern-
al benefit association operated under
the lodge system; domestic building
and loan associations, cooperative
banks, cemetery companies owned ana
operated exclusively for the benefit
Of its members; charitable, religious,
scientific and educational assocla
tions: business leagues, chambers OF
commerce, boards of trades; civic
leagues, recreation clubs, mutual hail,
cyclone, crop or fire insurance COM
panies. mutual telephone. elevator,
warehouse, creamery, packing or can
ming companies; cooperative selling
organizations; the federal land bank
and its farm loan association and cor
poratfons owned and operated by the
state. 4
The "Tax Commissioned"
evidently anticipating the introduc-
tion of a bill reducing the state tax
commission to one member, this bill
uses throughout the term tax COM
missioner" requiring that corpora
tions file with him duplicates of their
report to the United States commits
sioner of internal re7enue, and that
the state tax commissioner on or be-
fore the first day Of August of each
year shall assess this excise tax and
certify the same to the state auditor,
CONTINUED on Page Tw0.)