Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-01-10
GOVERNOR ASKS
TAX REVISION
Continued From Page Ous.)

Of taxation.
I would therefore urge you to scrutinize
In most businesslike and careful man
ner every public expenditure. While We
must not practice economy to the extent
that the State shall not continue to func-
ton properly in the performance of its
duty, nevertheless we must expunge and
refuse every unnecessary or l-advised
expenditure and postpone those items of
expense which in the light Of the present
business outlook might be met more eco
nomically at some future date
We must arrive at conclusions when
shall not tend to either extreme We
must cOura geOusly and fearlessly meet
and solve the perplexing questions con-
corning Institutional development con-
sistent with sensible and practical
economy.
BUDGET PLAN
PRESENTED.
Throughout the campaign, 1 promised
the people of Indiana that il l should be
chosen their chief executive. would do
Immediately everything within my power
toward the establishment of n budget
system for our State government
- have always regarded the ADMINS
tratiOn of our States affairs as large
business undertaking. The people are
entitled to an economical expenditure OF
public funds. The State should never
undertake an expenditure for any pur-
pose without realizing fully what rela-
ton the proposed expenditure viii bear
to the States Indebtedness and TO its
sources or revenue OF borrowing power
A comprehensive budget plan based
upon the experience of our sister States
viii be presented, and in the interest OF
government 1 shall he greatly p-eased II
all the members of the General Assembly
see their way clear to support 1t earnesc-
II. The justification for such a course
is so obvious that 1t seems hardly neces
sary for me to discuss 1t at greater
No public undertake. could better adj
vance the best Interests 1 the people OF
Indiana than an intelligent eRpenditnt,r
Of their public funds. Many interest
are pressing for financial aid: most OF
them entirely worthy. and their reiatlVe
importance can be gagged only Dy a
knowledge of the financial needs OF al
the different branches of our government
together with full Information concern
ing the funds available
1t is therefore my hope that the meas
ures for q State budget will have your
unanimous support, and am sure sucn
a course on the part OF the GeneraL Al
sembIy will meet with universal approval
PRINCIPLE OF NEW
TAX LAW UPHELD.
The last General Assembly deserves
commentator for undertaking the TASK
of revising the Indiana tax law: Inc
defects in tax legislation previous 10 tnS
known and generally admitted. 1t is my
opinion that the control OF tax leYles aII
bond issues insofar as practlcal, shOutd
abide in the local taxing 9n US! 70 ,s tTe
g COW units may at all times be
preserved 49, oil
prcDartv in Indiana should be assessor
nj its true cash value. That this IS the
correct basis is beyond dispute. The
principle is now established and II Is
nv Judgment that no legislative body
in Indiana will ever repeal it. However
IN the practical operation OF the law
there is general tendency to advance
tax rates to dangerous proportions IN
aASrder to provide for new Improvements
.N nd thus the future of those communities
which the power has been abused is
Eriously threatened. In many counties
y of the State new projects have been pro-
posed, new building programs lnaugu-
rated and new highways projected, con-
sequently higher tax levies have been
made and in some instances carried TO
point where the burden is hard to bear
The tax law OF 1919 in sections 1SS and
S01 attempted TO meet this situation out
its enforcement was not satisfactory 70
the people and caused much confusion
and criticism.
By an act Of the General Assembly in
special session convened on the twelfth
day of July, 1920, the court Of appeal
was changed from the State Board OF
Tax Commissioners TO the county coun-
ell in which the bond issue was under
contemplation. At that session section
1873 Of the tax law passed In 1913 was re-
pealed This act prOvided that the levy
yield a greater revenue than WAS obtained
by taxation in the year previous, and
limiting the rate to 1 Il per cent on each
S1OO OF taxable property.
HOLDS PROVISION
DANGEROUS.
Advancing costs and limitations upon
the proper requirements Of the various
taxing units made this law unpopular
and impracticable. The act passed by
the special session in substitution there
for provided that twenty taxpayers could
appeal from excess rites and upon this
appeal the matter Of adjustment was left
Ito the county council with full power
20 act.
The well-known indifference Of the pub
JIG to act in its own defense, and the
ease by which signatures can be obtained
for any kind OF a petition, make this an
impractical and dangerous provision.
Inasmuch as the valuation for assess
ment purposes has more than doubled,
while the limitations placed upon bond
issues remain unchanged. / believe there
should be some curb upon the prodigal
and wasteful expenditure OF the peoples
money. I suggest, therefore. that the
fixing of the tax rates should remain
with the local taxing officers but some
provisions should be made for an appeal
to the State Tax Board for final deter
minatiOn in case there is a protest filed
against such rates In the form If n re-
mOnStrance or petition signed by not
less than fifty taxpayers from the tax
ing unit wherein the contest arises and
representing on the tax duplicates not
less than one hundred thousand dollars
(S100.O00) Of taxable property.
This remonstrance or petition should
be presented within a specified number
OF days after the tentative fixing of the
rates by the local taxing officers and
should be heard by the tax board In the
taxing unit from which the appeal was
taken, within a specified time, upon pub
lie notice to the taxpayers OF the unit
whose rate Is in dispute
l furthermore recommend that apDeaIs
be provided for in He manner, respect
Ing the matter Of bond issues by any tax
ing unit; and in all such cases Of appeal
regarding either the matter Of tax Ievies
or bond issues, full and final authority
should be vested in the tax board to CON
firm, reduce, increase or reject such
levies and issues rs 1t may deem wise.
just and expedient.
do not believe IN the centralIzfpg Of
power as to the fixing Of rates. or as
70 authority for local Indebtedness: but
in order to regulate extravaganza and
HI-cOnsidered projects, an appellate juris-
dfction should be vested somewhere and
the State Tax Board Is the best qualified
tribunal for the decision Of such appeals.
realize that there must be central
lied power in order to secure effective
administration of the law, but in the
province OF the tax commission and tax
ing officers this should be exercised for
the purpose of securing just valuation
for the assessment and for eduaIizinr
assessments as the Constitution provides.
but never for the purpose of securing
such valuations for taxation as will be
more than the actual value Of the prop
erty which is taxed.
I also recommend that whenever It
shall appear to the State Board Of Tax