Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-07-09
FEAR IUIIVE
FURTHER POWER
TO TAX BOARD
Believe Court Again Would
OVerturn Horizontal
Valuations.
ACTION IS IMPERATIVE

Would the legalizing by the legis.
lature of horizontal property valua~
ton increases ordered by the tax
board result in court action to have
the legalizing act declared unconsti-
tutional?
This question is bothering state
and city officials who are attempting
to find solution for the financial
muddle that has resulted from the
decision of the supreme court de-
claring the state tax board over.
stepped its authority in ordering
horizontal increases in valuations.
All agree that something must be done
to prevent the enormous loss OF revenue
which will result from the decision but
it is very doubtful whether in view OF
the constitutional question the legislature
Will be asked to legalize the acts of the
tax board.
SOMETHING ELSE
Is NEEDED.
Following a full day spent in discuss
ing ways of obtaining needed reYenua
Of which taxing units have been de-
prived by the court decision, officials ap-
narently had come to the conclusion that
something besides legalizing act by the
legislature is necessary to solve the prob
lem
The conferences were continued today
when city officials met with Gov. Good
rich to go over plans for obtaining rev.
enues
Attending the session were Fred
Slmms, chairman Of the state tax board;
Emsley Johnson and William Thompson,
representing the Marion county Htigants
Eanderburg colunty. Attorney Kahn OF
Evansville, Samuel Ashby, Indianapolis
corporation counsel; J. II. Baker, school
board counsel: Attorney General Els
Stansbury and the governor.
No definite conclusion was reached, sc.
cording TO Gov. Goodrich
1t was agreed there are three possibIs
ways out:
: First. legalizing act, the constitution
atty of which would almost certainly
be contested and which might result in
/ an even more serious situation than that
/ faced at present
/ Second, an act creating special 1evies
, changing the present Ievies in proper
ton to the changes in valuations brought
about by the removal of horizontal in
3 creases.
Third, a provision permitting taxing
units to borrow money TO tide them over
the remainder of the year until pro
vision can be made for collecting more
( taxes next year.
+ SECOND SEEMS
MOST PRACTICABLE.
/ The second Of these provisions appears
to officials and others who have been
working on the problem to be the most
practicable.
The first would undoubtedly result in
I further court action. The last would
mean further interest payments, and that
/ interest rates must be increased in order
( that securities can be sold, and that tax
ing units already bonded up to the con-
stitutiOnsl limit would have no recourse.
The increasing of tax levies in proper
ton to the decrease in property vaIua-
/ tons would mean simply that the amount
/ Of taxes already anticipated would be
] paid this year and that there would be
! little practical change in the status Of tai
affairs from that which obtained before
the court decision.
WOULD DIRECTLY
! CORRECT ERROR
This would have the effect of directly
correcting the error of the tax board in
ordering low rates and unnecessarily. and
In many cases exobitantly, high valua-
tions.
Mr.. Johnson is the attorney who insti-
tuted the proceedings which resulted in
the supreme court decision
City officials, who conferred Yesterday
afternoon, are opposed to any step which
would legalize the action of the tax