The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-02-04
CHANGE IN TAX
METHODS NEEDED
DECLARES S|MMS
Taxation of Incomes to be
Part of F Future Program,
Declares Tax Commissioner

Fred A. Simms of Indianapolis, ex-
secretary of state, and now a member
Of the Board of Tax Commissioners,
was the speaker at the Rotary club
meeting Tuesday noon at the Airing
ton. Mr.. Simms explained the tax bill
that went before the house today.
1t has become an economic neces-
sity to find new method of taxa
tion, the speaker said, in order to
abandon the old method of simply
raising the tax rate.
Stability is going to be one Qf the
f1aturo6 ID the matter OF
taxation" said Mr.. Simns iet ios,-
la revenues must come from the ex-
tension of taxation power anu not
from a raise in taxation"
Taxation of incomes will be one of
the things that will be a part of the
future program of taxation. The
state will reach out and involve in
comes in its method of taxation. We
are about to enter an era when the
destructive idea of increasing the tax
rate must be abolished. Other meth
DDS must be adopted"
Bill Means Long Step.
"The new bill that is now before
the house." said Mr.. Simms, "is cod
ification of the present tax law plus
suggestions that have been made
which are decided changes. The seri-
Gus amendment takes from the law the
control of the tax rate. II the bill
passes as it is there is every reason
to believe that very long step has
been taken in the matter of taxation
in Indiana which is in a desperate
condition. The suggestions that have
been made are the best that could be
made Under the provisions great
deal Of relief will be received"
Extend Power of Board.
In speaking of the organization, one
of the changes in the bill Mr.. Simms
said that the power of the tax board
is extended to the extent that it could
remove an assessing officer in To-
cality, providing there were charges
of dereliction of duty or dishonesty,
but there must be direct charges and
a five day hearing. No board could
use it's power drastically in this mat
ter This was put in the bill because
it is a power that would overcome
local influences.
IF the bill is to be enforced" said
Mr.. Simms, there must be suffic-
lent authority to do SO. However, the
board does not now possess the power
to appoint a successor"
"The reyaluation change is not
new" said Mr. !. Simms. "It simply
extends the power given in the pres
ent bill This change has been made
as a result of extensive examining in
other states. This has been copied
from other states with a view to re-
moving difficulties that other states
have experienced. This provision
gives the power to state boards to re-
value in county and raise and lower
between counties"
"The control of the tax rate is the
most important change. In Indiana
serious difficulties have been expert
enced in this matter, particularly so
in some parts. The present method
has been depresser on commercial
values of property. The average tax
rate in the state is appalling There
has been this year $4,000, 900 added
to the tax duplicate. Every year-since
1912 there has been an increase in 81
cities out of 98. In 1915, 1916 and
1917 ten per cent was added to the
valuation of property and yet taxa
tion rates went up ten per cent. Un-
der the new bill no taxing unit can
raise more money in year than in
the proceeding year. Revenue can be
secured by petition. 1t all depends
upon the sentiment of the taxing pub
lie in community If the community
wishes to borrow money instead, of
raising the rates by the council or the
trustees and their boards the public
is given notice and there is hearing
in the community when everyone has
an opportunity to express his opinion.
1t is turning the light of publicity up
Oh the amount Of revenue to be raised
and the purpose for which 1t is being
raised. It is putting borrowing to q
referendum vote"