Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1921-01-05

| in other words, from these 2,I4l, / Ii
| tons of coal of the value of $1.TJ7, 103.
at the mine, on the basis of 2A mills
levy for state purposes. exclusive of
| surface improvements. the state govern
ment received for taxation in 1920 the
sum Of S6s109.
| 1T these things be true would it be
inequitable TO levy a coal tonnage IL
cense fee of 10 cents per ton for the
support OF state government and cor
responding license on cement plants the
same TO be paid quarterly? ! command
this to your earnest consideration.
Metaliferous Mine Taxation.
| Ry the same provision of our consti-
! tuition. taxation of mctaliferous mines
/ are also limited to a tax on met pro-
/ ceeds' plus the regular property tax on
/ improvements.
| We all take just pride in the great
! development of the mining industry in
| Montana Certainly no sane man would
/ want to see it hampered in any way by
unjust legislation or inequitable taxa
! ton. We want to encourage it in every
| legitimate way.
! We realize that at this time it is fac
ing period of industrial depression
along with all our other industries.
| | do not wish to give the impression
! that it is easy to determine whether the
present system of mine taxation casts
/ upon that industry its fair share of the
burden. nor to doubt that the mining
interests are sincere in their belief that
they are paying proportionately as much
as the owners of other classes of prop
erty. The totals in state and local taxes
paid By the mining interests are large.
| have not the figures for all of the COM
panies, but the following shows the
amount paid in property tax by the
largest mining operator. the Anaconda
! Copper Mining company, for the five
years from 1916 to 1920:
In 1916, 1919, 622 81: in 1917, S1657.-
62S.5o: in 1918 81, 1o7, o55.59: in 1919.
SS0S, 992 &c: in 1920. S9TS.:Ii663; total
state tax, Sl56 SCI 90: total county aud
city tax. S5,066, SS3.6S; grand total
50, 1872, 1860.
How They Are Taxed.
In addition to the net proceeds tax,
mines are taxed upon their surface value
and also upon the value of their improve
ments. These mining, smelling and mill
ing improvements necessarily deprectate
in value with the exhaustion of the mine
and upon abandonment of the mine there
is left but their salvage value. Where
they are taxed at their full value. MS in
probation, there is merit in the conten-
ton that they bear a proportionately
heavier burden than the ordinary build
ing or Improvement. l understand that
under the federal income tax ii is the
practice to allow each year Il deduction
for depreciation for these mining indus
try buildings, machinery, etc, at a rate
which will equal their full original cost
within the life of the mine, less such
salvage as may be found at the end.
The figures as to the one large 'nint'g
operator above referred to show nat II
the years 1917, 1913 and 1919 that COM
pany paid in taxes to the state for siste
general fund purposes, including tlc
So4.00 or 2013 per cent of the total
amount 50 collected by the state for such
purposes.
License Tax Also.
Tn addition to the property taxes above
referred to. this mining company paid
upon the one per cent corporation license
tax the following amounts in the years
1917, 1913 and 1919:
One per cent corporation license tax:
In 1917, $42S,S in 1918. $267 ,224;
in 1919. $170013; total, $4,000.
In fairness to the mining interests. !
call attention to the large percentage of
the corporation license tax paid by the
mining corporations.
In 1917. the total collected by the
state on this one per cent license tax was
$3.50. 457. Of this amount, six of the
Silver Bow company mining companies
paid S553,545, or 7o.27 per cent. In
1918, the total collected by the state was
S557,75S of which six mining companies
paid $500, 926 or 54.22 per cent. In
1919, the total collected was $780,, 954
Of which the six mining corporations con-
tributed $751;, $3.50 or 46.1O per cent.
In these three years these six com
panies paid approximately 81 per cent
of the total collected.
Upon Value of Ore.
In responding to this one per cent
corporation license tax it may fairly be
Suggested that the mining companies are
not in the same position as the ordinary