Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-09-13

war level.
Mine Tax Law.
Our present mine tax law is q
subject of more critic SIN probably
than any law in our statutes. This
law divides mines into two classes:
LIST, Productive mines and min
erals lands.
End. productive mines and
mineral lands.
Productive mines are assessed on
the net product of the mine. and
the tax on this net product Is In
lieu of the assessment on all min
eral lands contiguous. in the same
ownership, TO the lands from which
the output is taxed. The Tax COM
mission has original jurisdiction in
the assessing of productive mines.
but are restricted by statutes from
using its own methods in arriving
at the value. For instance, a mine
may operate all the time but show
little or no net output to tax, so
we are powerlesS to impose Il tax
commensurate with the value of
the mine.
Non productive mines are assess
ed by the county assessor by the
acre.
How Coal Escapes Taxes.
This law governs both coal and
metalliferous mines. Its operation
in the metalIiferous mines has been
more satisfactory than in coal
mines. The obiectionah,a feature
is the lac,x NJ authoritv in the
state tax commission 10 assess
the mine thar has been nroducing
steadily the oneration of which has
failed IN nroduce nrofit for taxa
tion. The ann,ication Of this law
to the mining of coal has created
a great deal Of criticism on account
of the large areas of coal land
held bv single operating companies
that escape taxation Ry applying
tho "contieuous" clause For in
stance one large company has
200. 900 acres of coal land in fee,
and the mineral rights on 400 900
acres adjoining Thar TAXABLE pro-
duction is ahout one and one-half
million dollars THE coal that is
ON their land that Is owned in fee.
pscanes taxation. through this out
mt fax However they do nav
nominal tav on their coal rights
an tho 9O0 400 acres that thew do
NOT own in fee This system of
axemntfon of mined coal on this
arge area has subjected this law
n Severe criticism and there Is no
1ouht but our next legislature will
mako radical changes in the law.
A careful reading of the adj
fance copy of the report of the
special committee of this confer
,nce on mine taxation, appeals TO
ne as a possible solution of the
yexed mine tax problems in our
tate.
Our law taxing intangibles Is so |
Indefinite that we may say the
esult is practical breakdown.
Money, notes and credits are as.
essed by the local assessor. ana
BECAUSE of the character of assets
nd the Indifference of the assessor
nd the Discrimination of the tax
'ayer to reveal his intangible
this law in its operation
las proven of little value, as but
bout 100000 are found on the
oils, while the probable assessa-
lie value of money, notes ana
redits in New Mexico should be
round $50,000,00o, as reflected IN
ur bank deposits of $50, O00.
Jnder our law, as administered, 1t
5 practically impossible 70 increase
he item OF Money Notes anu
'redlts on oui 90
FRANCHISE TAX Law
In 1919, our legislature passed a
aw taxing the capital stock OF all
oreign and domestic corporations,
which is known as the FRANCHISE
AK Law" This law provides that
Il corporations shall be assessed
t $40 on each 100000 of their
capital stock. ...
In the case of domestic corpora
ions, the ascertalnment OF the taN
] simple. However. In the case OF
oreign corporations, having prop.
rty and business outside as wen
s inside the state, it Is PROVIDED
nat there shall be taken Tor as
purposes such proportion
{ their total authorized capl'ai
.ock as appears in a comparison
etween their earnings and prop {
rty within the state ana their {
and property OUTSIDE the {
ate. This law is conceded TO De S
Of perfect, but the cash results
hereof amount 10 SUBSTANTIALLY
10000 per year. |
That Gasoline Tax. I
The 1919 session of the New I
-exico legislature passed an act 8
roviding for a license tax upon a
of gasoline of $50 per c
alton and unon retail dealers OF /
90 per station. with an addi-
onal excise tax of two cents per
,llon upon ali gasoline sold. or
;ed within the state. The law
40 provided for eight inspectors
non salary, with provision for
ayment of their expenses. The
-oceeds OF the tax were to go to .
,e roads of the state.
A suit was begun in the federal
strict court to enjoin the enforce
ant of. this art unon the claim
Iat II was a burden upon inter- I
a