Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-03-15

moved the proposed tax on oil
Of the gross production.
1t was reported out Of the COM
i, mittee Of the whole in the same condi-
tion as when originally drafted. 1t
later passed on third reading.
This action followed move ini-
tiated by Representative III. 6. Dun
bar Of Gallatin county to reduce the
proposed tax from two per cent, as
recommended by the committee on rev.
enue and taxation, to one per cent.
Dunbar said Montana should not go
on record as imposing the highest oil
tax in the United States and he quoted
the tax rates Of Oklahoma, Texas and
Wyoming in support of his contention.
Companies Under Big Expense
Representative Homer E. Gels, of
Fergus county supported the Dunbar
amendment while Representative Il.
&C. Dillayou of Yellowstone county
said the committee might as well strike
the enacting clause as the assembly in
regular session had passed one
per cent tax. He said some oil COM
panies had traded holdings until they
were now paying royalties of from
35 to 45 per cent and if they could
pay such royalty they could certain
ly pay two per cent tax.
Dunbar said the oil companies had
already expended 14,5OO.OO0 in the
state and had taken out in production
only S1.OOO,O0O leaving deficit OF
$13, 100000. He said 200 dry holes
had been drilled.
D. A. Bergeson, after suggesting
that many more millions have been
lost by the farmers of the state and
still they are being taxed upon their
gross products, read statement by
which he sought to refute that issued
some time ago by Senator J. r: Ed
wards, relating to the expenditures
and estimated revenues of the state.
Discusses Revenue.
His statement showed that the
revenue from the various new tax
measures for the year 1922 had been
estimated as follows:
Licensing of real estate brokers,
minimum $4,000, maximum $4,000;
increased license of express companies;
minimum $4,000, maximum $4,000;
increase in fees Of secretary of state,
minimum $4,000. maximum $4,000;
net product coal mines. minimum
$3.50, 900, maximum S175,OOO; license
tax on oil production based on daily
production of 5000 barrels at per
cent $1S,25O, at per cent $36. 500, at
3 per cent S54,7 metal mines
license tax of n per cent, minimum
$4,000, maximum s15O,OOO; gasoline
tax, 100000; tax on imported coal,
$4,000; inheritance tax, minimum
SAC, 900, maximum $4,000; total mini
mum $74S,95O, maximum S793, ,25O.
He showed that the deficiency on
March l. 1921, was s., 254 $50 and that
appropriations had been made for the
four months ending June 80. 1921, of
S991 ,S4S, for the year ending June 30,
1922. of $685., ,342: and for the wear /
ending June 30. 1923 of $3,319,7l9 or
a total of S9.S33, 400.
He estimated the revenues for the
periods at $647 100; S3.-
BAT 693 and $3,4S1 ,O93 which would
leave deficiency June 30, 1923 of ST.
357 1868.
Must Have More Money.
1--WE must have additional revenues"
he said. II am in favor of three
per cent tax on oil and ii we cannot
get that. onen two per cent tax. If
we don't get additional revenue the
state will continue to run behind at the
rate of $4,000 per year. The Oil
are in a position to pay
this tax and / do not believe It will
hinder the development of single
well.''
Dunbar's amendment was then de
feated whereupon. Representative b.
G. .Brockway Of Yellowstone county
moved an amendment that the rate be
fixed at ~ per cent. He said it
seemed that two factions were working
on this bill and he believed a trade
rould be made upon this and compro-
mise at IA per cent. Representative
B. II Cooney of Cascade county, sug
,ested that committee he appointed
q investigate the remark relating to
trading" The Brockway amendment
ost.
A motion BY Skulason and Bergeson
vas then made to place the tax at
!, per cent and it was adopted without
| record vote. and the bill was then
for passage as amended.
Later Bergeson had the bill referred
,ack ~ general orders to make some
light change after which it was again
.eported out and was passed on third
eading with the tax remaining at 8
,pr cent $500