The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-01-24
MINE OPERATORS
TO FIGHT TAX
Controversy Arises Over
Mines Located ion IN
dian Lands

MIAMI, Jan. 20 Mine operators
/ owners ana rcsidcntp o. Ottawa
county holding projects In the okla
/ homa mining field have voiced much
| speculation over the recent ruling
/ of the state supreme court with ref f-
crcnco to improvements on Indian
lands not being taxable.
County attorneys OF the counties
affected by the ruling and attorneys
for various mining concerns have
had many conferences since the de-
cision was handed down, discussing
the effect the ruling viii have on
| their properties anu means to re
adjust taxation.
Tho main difference Of opinion
between attorneys, 1t Is pointed out,
involves the advalorcm tax ON mills
machinery and other equipment of
companies and individuals operating
mines on lands leased from Indians
VINO are wards of the government.
Miami attorneys contend that no
tax may be levied upon either the
product of tho mines or the micnin-
cry used In its production. This
'I'H''lAt Ali'o' hlA'l u'1N u'lldt's lN
based on "A previous ruling of the
supreme court, which exempted ore
taken from the restricted Indian
lands from tho state gross produc-
ton tax. The court also held that
income derived from restricted In
dian land is non.taXablc under the
state law, attorneys say.
The theory that the mills and
other property are also untaXabic Is
based on these two rulings. attor-
neNs maintain, and court decisions
which were cited IN connection with
the SHELTON Lead and Zinc company
case, which brought about tho i'm
pounding Of the gross production
tax. Its subsequent notification by
The supreme court RESULTED, 1t rs
said.
Judge V. L.. Thompson, attorney
for the company declares tho de-
cision was tho result Of a suit IN
which attorneys for Picher and car
din attempted TO collect Gdvalorcm
tax on mills being operated In their
district.
1t was contcnded by the repre-
scntativcs Of those towns that the
gross production tax was void and
that after parties had paid IL with
out protest they would not be able
to collect it back, but would De com
PEELED TO pay the advalurcm tax
also" Judge Thompson contends.
In view OF the fact that the tax
In the districts mentioned is so alb
normally high the mining companies
became frightened ana instructed
their attorneys to file test cases at
once to determine the situation.
when the attorneys began an In
vcstigation they found tho supreme
court OF the United states, in recent I
opinions. had laid down "A principle
which would in effect make mining
business being conducted on rc-
striCtcd Indian lands non taxable on
the theory that they were "A part Of
the Rovernm entail agency.
This seems to be the theory on
which the supreme court decided
the case, although no attorney has
received copy OF the opinion. II
This theory IN correct, these lands,
or mills located on them, will not be
taxable either for gross production
or advalorcm and the result Will be
far-rca ching indeed"
Ottawa county will lose approx
mntelv s25,000 each year AS tho re-
suit Of the ruling, the county treas
urcr has estimated. State revenues
will be curtailcd about 100000
the state auditor estimated.