The Birmingham age-herald., 1920-06-13
VALUATION MUST BE INCREASED ID
 AVOID SESSION
State Treasury Lost $950, 1000 In Income Taxes, Which Property Must Pay,
 Says Governor
By FRED H. GORMLEY
 Montgomery Bureau The Age Herald 22i-2 First National Bank Building


 Special. )-An extra session of the Alabama lt Iislature can be avoided onlyl Y increases in property valU ons which will net the stS treasury $950,000 for the g leral fund and pension fund according to Governor Kilby nj the sec ond formal statement of the week regarding the states inn mediate future, which he made public Saturday afternoon.
 Governor Kilby showed that the state treasury lost s95OOOO when the income tax was rendered invalid; that appro- ,.spriations were made based on the belief that this amount would come from the tax, and that, in order to meet appro- priations and supply the states needs, ad valorem assessments must be in- creased s271, ,42s, 900. Total assessments of real and personal property in 1919 were $730, ,071, ,7SS. If the increases necessary to avoid an extra session are made, the total assessments will reach s1,001. .4s9, ,7SS for 1920
 The statement said that the census re- port of 1912 showed that property in Alabama was assessed for taxation at 3i 1-3 per cent of it's value. Governor Kilby said the increase necessary 10 |, meet all obligations of the state would V place assessments for taxation at 4 per Y cent of the market value of the prop \ erty or B per cent less than the 6o .v~Ssar cent al which the law contemplates all real property shall be assessed The Russell Sage foundation in 1919 es- mated the value of real and personal property in Alabama at s COG. .000O0O Gov ernor Kilby said this estimate would L indicate the average assessment CT rroperty in 1919 was 24 1-3 per cent Of 3 the cash valuation. The proposed in crease would bring the value up to 34 l-5 ! ner cent. or 25 2-3 per cents less than b the percentage fixed by law
 UP TO TAXPAYERS T Now, if the taxpayers of the slate are willing to pay even that part of the 4 amount of their lawful taxes, we can nav the appropriations and avoid an ex- tra session of the legislature; II they are not willing to do so, an extra ses- son will be necessary said Governor ISilby. T earnestly hope they VIII rise fn as full grown men and patrio's should do."
 Governor Kilby defended the appro- E rriations made in 1919 declared the H money would be well spent, and inslsteu that even adequate approprlations neao not wei been provided for public eau ce+,on He said teachers should re- ce;ve halter salaries, that the East Lake sohool for boys is an industrial scnooi rithout industrial tools; that the insane rosnitals have not sufficient funds, ana that all institutions of the state, wlth Ere execution of the convict department, ! iwbich is self-sustaining. are Tn heea VI kjadditional appropriations.
 Ts +ha taxpayers do not want the ln- ,~aase in assessments, an extra session ,oust be called. and Governor kiipy saio Inc logical thing for the legisiature to tne sr extra session would be to raise oo 1in ,asis of assessment to 30 or 1oc ei.e oant with an automatic increase in 1'i TEXT OF STATEMENT
 coyernor Kilby's statement follows: since the supreme court has declared unconstitutional the most Just, 1alr ard equitable of all of our tax meas ures, the income tax nave s'uo'e' with much pains to learn how an ex- troordinary session of the legislature ,,av he avoided. My conclusion is thai ;t can be avoided in one way. and by onc class of our people, and only oy ther in only one way, viz; by the legal and equitable assessment Of real and personal taxes by taxpayers.
 + was at first estimated that the .tste would derive $600.0o0 and the counties and cities $400,000 from that sourca. Later, seven-eighths of the r.r+ of the counties and cities was d. varted to the state and appropriated as an increase of the pensions of Con- federate Veterans.
 So that it is now necessary to make vn loss of the states revenue sr,ounting to $950.000 per year in or der to meet the appropriations, inciud ! inc the increased amount for the old
 Rv constitutional provision. mills ot all ad valorem tax collections go to the educational fund. by statute law. mill goes to the pension fund. leav- ine e1h mills for the general fund. the total tax levyf being sA mills
 NECESSARY INCREASES
 Tn order to raise the s950.000 for the general fund and increased pensions, tt will be necessary to increase the ad va,orem assessments by $271,42S.oo0 VI b.ch would be divided as follows:
 s271.42s,ooo at 1 mill for pen-
 siOnS ---.-. = '.v- 'Sa ,.e71.42s 900 at 21k mills
 - for general fund. !. e00.ooo
 N, nensions 78,572 67S,572 s95o, GOO IA &s total assessments of real and NE sSnal property for 1919 was s15o- N& TBS. The assessment must be in- ased for 1920 to $1 .o01. .49s.7ss, in or IG :. to produce the needed ss5oo0o in 4E ,onue.
 Ky rhe average assessment for 1919 was 4 f-s ner cent of the actual value of the property eight years ago. accord ing to the United States census bureau rerort for 1912 The increase men, ned above would bring the average rn to 47 per cent. which is 1S per cent less than the assessment fixed by law &,hich is 50 per cent. Based on $3.o00.- 3co.ooo as the value of real and per- T sonal property of the state Tor leis' aa
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