The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-05
A Good Law.

II is paradoxical but none the less
true that the Issue upon which the
opposition TO Gov. Roberts is making
most political capital is the most salu-
tary piece OF legislation enacted during
his administration. We refer. OF course,
10 the assessment law.
The inequality Of assessments has
been scandal in Tennessee for many
years. other administrations pledged
to solution OF the problem approached
the subject, found II a two edged
sword and uniformly backed away from
il. II was left 10 Coy. Roberts to put
into effect r law that will benefit the
state and work a hardship on no one.
Tennessee. as nearly everyone knows.
has been operating for a long time at
loss OF nearly million dollars a
year. Expenses In government have
increased and revenue has about main
tained It's customary deficit. Natural
ly a time for reckoning had come. Bond
issues. short time notes and other
means OF taking care Of the difference
between what the state spends and
what It receives, were destined to come
to an end some time.
II was thought at the beginning of
the application OF the assessment law
that the taxpayers would be called upon
in the increased assessment to make
mp the deficit in operating expenses.
But strange thing happened. when
the statisticians under Mr.. Louthan and
Mr.. Robinson went out over the state
to make a preliminary survey looking
to an equalization Of assessment, they
found in Tennessee property unsssessed
which, when assessed on basis of
other property. would yield sufficient
revenue from taxation to wipe out the
annual deficit and permit the state to
break even on its income and opera
ton.
The first result from the operation
of the assessment law. therefore. was
TO reveal sources that yield in pick
up" enough to wipe out the annual def
icit. These are sources that hereto
fore have yielded nothing in taxes while
the people who were assessed carried
their burden.
II must be obvious from the discov-
cries Of hidden sources OF revenue that
the taxpayers will not be asked for
any increase In funds under the assess :,
ment law. The average amount Of
revenue collected In the past, together
with the taxes from corporations and
other concerns that heretofore escaped
altogether will permit the state to con-
duct It's affairs without deficit but with
out additional burden upon the honest
taxpayer.
The farmers are more exercised than
others over the assessment law. They
are fully aware that their assessments
have been Increased. but II has not
been made clear to them that as the
down.
The investigation made thus far
makes It reasonably certain that the
person whose property Is assessed at
one-third its actual cash value will
not be affected by the operation of the
law.
Property assessed at less than one
third it's actual cash value may ex-
pect raise In assessment that would
approximate one-third its value under
the former rate.
Property assessed at more than one
third OF its value formerly will be re-
duced to a basis OF one third
Under the new law the assessments
will be as nearly as possible at the
actual cash value all over the state.
Under the former law the property that
did not escape assessment altogether
averaged about one-thlrd its value.
Property assessed at less than one
third It's value will pay more taxes;
property assessed at one third its value
will not be affected, and property as
sessed at more than one-third Of its
value. under the old law. will pay less
taxes
When II is considered that the as
sessed valuation of real estate will he
almost trehled In arriving at its sc-
tual cash value. and the tax rate re-
duced almost two-thlrds, it will readily
be seen how much sound and fury has
been made out Of nothing.
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