The evening herald., 1920-11-24
Revenue ComFpission
Urges Sweeping Tax
Reform in State

the district attorney.
Aboiishing OF the mounted police,
now costing $4,000 year, IL rec
commended and the Substitution OF
three Inarshais. 20 be appointed BY
the Rovernor and TO be refponaible TO
him, at a salary of $500 each with
a contingent fund OF $4,000.
Further recommendation In re-
trenchment are to eliminate the IN
spectors provided in the gasoline eN-
| else tax law, and to reduce the tax
from two to one cent a gallon. TO
stop printing the delinquent tax lists
and employing special counsel TO alu
In the collection Of delinquent taNgF'
The opinion IN expressed that rail-
| roads, as n whole, are adequately as
sessed, while Rutomobllea represent
ing a vnlue OF StihOO,000 arc not
| shown on the tax rolls. The eNemp-
tion Of $1,000 allowed to former serN-
ice men Is declared to be unconsu-
tutional, and Is further characterized
ns n poor form OF expressing np-
probation OF n state for valuable nnd
heroic service rendered.
Immediate repeal OF the preaent
income tax law is urged. and the
Hubstitutlon OF q flat income tax up
on individuals that will correspond
exactly to the federal income tax.
Tho rate will be two per cent one
great advantage In making the law
| uniform the federal act will be that
IL will be possible TO check state re-
turns against the federal. State em-
ployes. however, will not be cN-
/ empted, as under the federal act.
Tho special session OF the lcgisla i
ture in February repealed the present
income tax law. but Governor LARA
zoio vetoed the repeating act. The
! report Hnys there is no doubt that
the present law is 9noonstliuuonal'
budget Plan Endorsed.
Tho budget plan is strongly en-
dorsed, and II is reported that In Or
der to increase effectiveness the leEis-
iature ought not to be convened un-
ti March or April This change may
be made only by constitutional
amendment. II would give the gov
ernor adequate time to study the pro
posed schedules OF expenditures be-
fore making his recommendations u
the legislature.
Work of the state engineer, the
J state highway commission and th'
state health department is endorsed
The child welfare board should be
made a division of sho health de-
partmont, II is believed.
Mine Taxation.
The chapter or mine taxation GOV
ers 23 pages and goes eNhaustively In
II
ton. OF the present law the repor
! says:
, ''Thc whole system Is inoxact, ant
arbitrary as a method OF arriving a
/ market value. II rs inequitable bott
as between mines as n class anS
other property and between differ
ent mining properties within th'
, class"
Il As to another phase, Il says II
our opinion this conuguour property
clause exaggoratcs materially ever!
inequality which exists In the ne
product method OF taxing mines. I'm
, der it's ample cloak considerable val
ues have undoubtedly been able Il
A hide. Its operation has resulted II
q discrimination In favor Of the min
=. with vast Reserves and against IN
mine with reasonable reserves. |
:, has probably resulted In discrlmina
, ton against metaliferous and in favo
of coal minef. II has encourage
. the speculative holding OF natural re
sources by radically reducing tn
carrying charges on such property
IN our opi-ion a contiguous pfopert
v clause never had an adequate eNcus
for existence. We recommend thal
whatever method OF taxing mines I
adopted, only such reserves shall b
I. allocated to producing mines as ar
4 reasonable from an engineering an
i economic viewpoint"
q AIiDc Tax Proposal.
a As 10 fhe new plan the report con
r tinues: ~ our opinion the only pro
4 per way TO arrive at valuations {
I. mineral reserves is TO vest the stat
!. tax commission with power to fix IN
values and to provide them with pro
fessional assistance. Any attempt I
a impose arbitrary limitations Is AZ
4 to result In under assessment ana
y certain to result In inequality.
], cases OF over assessment there Is a
: ways resort to the courts, and sinC
\ properties Of this type are usual
held In large blocks, that resort wi
not be closed because the expense
appeals IL out OF proportion 10 IN
II amounts involved.
The specific recommendations arr
III THAT all legislation proyidin
for special procedure In oonnectio
with the taxation Of mines, inclut
ing the contigous property clause, !
at once repealed.
III 2--That new legislation be passo
specifying that all mining propcri
shall be valued on precisely the san
general principles as other real ei
late.
8-That power to assess all min,
and mineral property be vested
the state tax commission as reorgaf
izec ir accordance with our recon
mendation made elsewhere in tn
report.
The gum OF $3.50 is named q
necessary to make the initial valua
tion. II is further recommended thf
an engineer Of national reputable. 4
engaged 20 undertake the work: tht
II would be highly desirable TO retail
one OF the principal assistants in III
original valuation az permanent en-
ployc OF the tax commission, at
Halary Of about Si,5O0
In itH investigation and report n
Al commission was assisted by Rob
Murray Haig, Associate Professor
III E.i.nnnnllna nf Cnlnrnhln IfnINernlIN