Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-10-19

ton.
The taxpayers are paying and
paving heavily to have public affairs
efficiently conducted but there are
a great many abuses manifest which
continue because either the laws are
inadequate, the fault OF LEGISLATORS. or
because the administrator Of the
laws is lax, the fault OF the adminis-
traitors,
Il think, in genera way. that
here in New Mexico the laws. espec-
tally as to taxation. are better than
their administration.
1T is also hard to secure q united
stand for the specific enforcement of
our tax laws, because OF the difficulty
of honestly Interpreting the term full
cash value" which is the basis of all
assessment under the, general prop
erty tax law. This law is not strictly
enforced but, under the direction of
the state tax commission each year
sees distinct advance towards its
Just and equitable enforcement, The
general property tax is by no means
an ideal tax but it stands on our
statute books as the basis Of our tax
ing system and il is probable that no
better could, under existing conditions,
be devised,
"The producing mines Of New Mex,
leo are the only large interests in the
state taxed on a different basis from
other classes of property. In 1915 a
law was passed taxing producing
mines on the basis of net income, plus
a property tax on surface values. This
may possibly be first step towards
income taxation in the state. although
the mining interests in New Mexico do
not look upon this law as an income
tax law Another step in that direc-
ton was a general income tax law
passed by the last legislature These
two laws show a tendency, temporary,
perhaps, towards departure from the
general property tax. Producing mines
are generally considered to be on a
more favorable basis than other
classes of property under the law re-
ferred to. While the general property
tax works more manifest injustice on
producing mine property than on
some other property. the taxing of
mining business on a different basis
from all other business results in what
appears to many 10 be dlscrimtna-
ton in favor of the mines because un-
der our law the net production OF
mines is taxed at no greater rate OF
levy IHdll lit ACTUAL NtiNn value VI
all other property. 1t is probable that
producing mines even now more
nearly pay their due share Of taxes
than some other classes of property
The fact that the big mines promptly
pay their taxes assessed against them
and that the total sum so paid in re-
cent years has been considerable. does
not of itself prove that they are taxed
equitably as compared with railroads
and other property. Many different
methods Of taxing mines and mineral
production have been devised and II
is probably true that the method used
in New Mexico is. of all of them. the
one least burdensome on the producer
Various moves We're made at the last
Legislature TO amend the tax law but
most of them were altogether too rad
ical. But they were dropped and at
the governors suggestion merged into
bill providing for the appointment Of
a commission to investigate the entire
question and report to- the legislature,
! This bill was unfortunately lost In the
closing hours of the session. The gov
ernor has of his own motion appoint
ed an unofficial advisory board TO in
quire into the matter. The board has,
so far, we believe. held no meetings
| The legislature also provided that the
average production of mines for three
years, 1916 to 1918. inclusive, should
| be the basis for taxing the mines
| in 1918 and 1920. This was sort OF
compromise measure but ii is evident.
ly working a hardship on some prop
critics.
| The law and the income tax law.
! if it proves workable, will undoubted.
! w N fyaatiaa1 nffApf go az,
wards equalizing any unfairness
which may exist in favor OF produc-
| ing mines over other classes Of prop
erty. The mining companies which
| under teh law fiyes their assessments
in 1919 and 1920, at the average of
the years 1915, 1917 and 1918, actually
will be taxed on much higher scale
than they would have otherwise been,
because of the decreased production
and profits due to the ending of the
war. The years 1916 to 1918 show
the highest net profits that the mining
industry has seen in many years.
The income tax law which under
its terms, will come into operation
next year, provides for a graduated
tax of from X to 3 per cent on net
incomes ranging from $4,000 to $780,
900 per annum. All such incomes
over $4,000 are, under this law. to
pay per cent and all producing
mines within the state are brought
specifically under the operations of
this law as to the net incomes from
such mines. There are, in fact, not
many going concerns within the state
to which this law will apply which
| will have net incomes of over $4,000
| and OF these most will be producing
mines.
IF oil be found In paying quanti-
ties the question of how to tax the
production will at once assume i'm
| portance At the last legislature some
| of the leaders we're asked to bring up
| the question in form of bill specifi-
cally providing that the present tax on
producing mines should apply to the
production of oil wells, but nothing
was done on the lines suggested. 1t is
| probable that without further legisla-
| ton oil would be included under the
present law"