The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-10-06
THE MINE TAX LAW OF 1919

IN the meantime, how many voters know that a mine tax law was
passed by the legislature of 1919 which made mining companies
: pay taxes ON output that WIS not produced and which saved the
state from virtual bankruptcy Mine owners made no objection to
this law which, in effect, exacted taxes from them on something they
did not own a profit that did not exist. We doubt il one out Of one
thousand citizens knows about this law.
The law was passed by both houses Of the. legislature with only
one vote in the senate against IL Smith, democrat, of Union county.
land commissioner on the democratic ticket, did not vote. senator
Esqpibel republican, was absent We have no record available now
of the vote in the house. If not unanimous there II was nearly so.
lature Of New Mexico, 1919;
IAN act relative TO the taxation Of the net output Of
BE 1t enacted by the legislature of the state Of New
"seo. !. That the average net value in dollars Of the
output Of each producing mine In the state Of New Mexico
for the years 1915, 1917 and 1918 shah be taken and cOnGd.
cred by the state tax commission as the basis of valuation
for the purpose Of taxation Of the net value in dollars Of the
output Of each producing mine for the years 1919 and 1870.
PROVIDED. that if the average net valuation in dollars Of
said three years for which the said assessment is made is less
s Imam .s sns sSs sssa nc, production 7, n.S. .h hor the me current sS,Ta !. ro oSv which
for such current year shall be taken and considered as-the
or mining company. Provided further, that whenever the
average net value in dollars Of production Of any mine for the
production shall be taxed on the basis Of production for the
current year. Provided further that any mine which has no
shall be taxed upon the basis Of production for the current
Sec. 2. Nothing in this act contained must be con.
strued to exempt from taxation any improvements, buildings,
mining claims or used in connection Herewith, or used in the
transportation, reduction or refining Of the products thereof,
claim or mineral land may have for any other mining pur.
poses; and all such buildings, ersctons, structures and ma
ohinery and all grazing, building and other surface rights
Of said mining claims shall be assessed in the same manner
as other property Of like kind"
This is what the mine tax law of 1913 means;
ga As .t everybody % , knows ,o, the ,1 ISzgsr RI mining o,s companies i made more
period of their history, because of war demands and war prices. It
is also known that some of the larger mines, particularly the copper
mines, have barely been able to operate their mines since the conclus.
ion Of the war, because profits have disappeared, due to glutted mar.
kets and lack of demand, and that they have continued TO operate
to hold their organizations together and prevent deterioration,
than in hope Of profit pending readjustment Of business, markets and
selling conditions. Yet these mines are paying taxes now, and paid
in 1919, not on what they produced in these years Of bad times,
but upon the average annual net production of the banner years Of
.19l6-i0ls.
When the legislature of 1919 met It was generally recognized that
a general readjustment Of the states taxation and revenue system
would be necessary. After long consideration the legislature adopted
the act creating the special revenue commission, so that action ON the
states most vital problem, when taken, might be taken intenigently.
In the end that decision will be found working for the best IN.
terest Of the state and for the interest Of every taxpayer, large or
small.
After this action had been taken it was found that the state
could not ind enough revenue to operate on. Nine production had