The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-13
GOV, GOODRICH TELLS
ASSEMBLY MEASURES
IMPORTANT TO PASS

Governor Goodrich, speaking 10 INC
Indiana general assembly at the open
ing Of a special session Monday, rec
commended that the legislators do the
following:
Legalize invalid assessments by the
state tax board and otherwise remedy
the present tax situation OF this he
said:
The tax law passed by the last gen
eral assembly has proven to be a vast
Improvement over the preceding law.
The task Of administering the law at
the regular quadrennial period of the
reassessment of real estate was ap-
palling Mistakes in the admlnistra-
ton of the law, of course, were newt
able. The principle of the law is right |
and only such changes should be made
from time to time as experience sug-
gests to be necessary. Under the prior
law there We're certain legislative linn |
itations on the tax rates. In the abb
sence Of any certain knowledge as to
the extent of the duplicate it was i'm
possible to fix such limitation in the
new law. In lieu Of that the tax board
was given control over bond Issues
and tax levies. In the change from
the old to the new law this power
threw upon the tax board the enor
nous burden of examining into every
tax levy and every bond issue author
lied in the state The tax board has
since made rule which, in effect
means that it will only exercise appel
late Jurisdiction in the case Of tax
levies and bond issues. This rule has
greatly simplifed the enforcement of
the law
I suggest that the following changes
may we'll be made in the tax law at
- hn
next general assembly the making Of
such other amendments as the opera
ton Of the law may develop to be
necessary for the further strengthen
ing of the tax law:
!. That the control over the tax lev
les and bond issues be restored % the
local taxing and bond-issuing authori-
ties, subject to such appeal as may
be necessary to protect the interest
of the taxpayer.
2 That that section Of the law ex.
empting public securities be amended
so as to make 1t clear that all bonds
issued and payable out of revenue de-
rived from taxation be exempt from
taxation.
3. That the section Of the law ex-
empting real estate from the lien of
taxes be amended so as to make it
clear that the state still retains it's
lien for taxes upon the real estate of
the state.
The right of the state tax board to
equalize assessed values by horizontal
increases by counties has been exer-
cised since 1891 and never called in
question. Under the new law the
state tax board claimed to have the
power for the purpose of equalization
to make horizontal increases by town
ships. Acting under this claim 1t
made horizontal increases in a large
majority of the townships of the state.
such increases to apply only to such
property as was not assessed by the
tax board and excepting from the
horizontal increases certain classes of
personal property. The right to take
such action was questioned in court
The Appellate court by a unanimous
decision sustained the tax board. The
Supreme court recently reversed the
Appellate court and held that the tax
board was not authorized by law to
make such increases by townships
but only by counties, and that it had
no right to exempt from the increases
money, intangibles or any other par
t1cular class of personal property
A petition for a rehearing has been
filed and will be earnestly pressed
No decision, however, can be reached
before the October term of court. Ii
the meantime. a chaotic condition OBJ
tains in the fiscal affairs of the var
ious taxing units of the state Thi:
unfortunate situation can not be me
by further litigation, but an adequate
solution can only be furnished by thu
general assembly. To permit all tn,
horizontal increases to be set aSid,
would result in gross and widespread
injustices, would make necessary tn,
examination of every tax return in tn,
state affected by the horizontal in
creases, the making of rev tax dupli
Gates and the writing Of now tax re
ceipts throughout the state, and a sui
ficient increase in the tax lnvieS t
meet whatever reduction would result
from the change. with the inevitabl
result that all property not affected b,
the horizontal increases, would b
taxed much higher than other classe
Of property so affected.
1t is very apparent that many tax
ing units of the state would be unabl
to complete the financing of necessar
extensions of their school facilities o.
account Of the lower bonding powe
and the reduced revenue resultin
from the decreased assessed values
sembly could have given the tax boar
the power to do exactly what it di
do. 1t is also clear that it can no,
legalize any act of the tax boar
that it could have authorized when tn
law was passed.
I am persuaded that the lega1izing {
the acts of the tax board called /
question by the litigation, presents ia
less difficulty, and will result in few
er injustices than any other cours,
recommend, therefore, that the act
of the tax board in making the hor
zontal increases be legalized; that pr,
vision be made in such act that an
taxpayer whose property has been a
sessed at more than its true cas-
value by reason of such increases ma
have the assessments corrected an
the property placed upon the dupl
cate at its true value. This will CO
rect the existing situation in so fs