Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-03-31
TAKE ALL TAXES
! OFF FARM PROPERTY
Is One Suggestion of Tax Expert
at Farm Federation-No Pro-
duction Tax on Coal
(By Associated Prcss)


Heavier taxation ior tndevelopeC
mineral resources of the state anC
lighter taxation of farm lands
even to the extent of abolishine
all taxes on farm property, was
urged by P.N.Clarkc, secretary OF
the Kentucky Tax Reform Asso-
citation, III an address here today
before the second annual COnven-
ton of the Kentucky Farm Bu-
reau Federation. He spoke on the
subject Tax Laws of Kentucky"
Production taxes on coal, which
have been proposed i'll some quar-
ters, nc said. would retard dcvcl-
opment and should not be resort
ed to. They would only result in
taxes being passed along to the
consumer along with possibly
larger profits for the producer, he
said.
Mr.. Clarke reviewed the tax
Jaws of Kentucky from the begin
ming up to the present, telling
how i'll his opinion the constitu-
tional General Property Tax" Of
1891 had retarded the growth Of
the state and caused property to
i've sent outside. The law. he said,
resulted i'll the greater part e the
property not paying any taxes
and thus creating all annual def
cit that has led up to a $5,OOO,OOO
state debt.
The present tax law passed in
l0lI. Mr.. Clarke said. is not all
that could be desired. but it is
much better than tax laws in ma
ny states and has resulted in
millions OF dollars OF hidden prop
erty being brought out. The tax
rate has been lowered from so to
40 cents.
The old tax law resulted in ma
ny counties not paying enough
taxes for their own expenses. he
SAID. and as Il result there were
81 delinquent counties when the
present law became effective.
Now this figure has dropped to
81 and others are falling into line.
Complaints regarding the pres
cnt law, he said. are due largely
to misunderstanding. 1t has pro-
duCCd revenue sufficient to meet
state needs and promises sur
plu, To pay off the debt. Real cs-
tate now pays only 81 per cent Of
the taxes, whereas under the old
law it paid 50 per cent
'li there Is any discrimination
in the tax laws of Kentucky,
said Mr. Clarke. 1T is in favor Of
farming property which enjoys
some peculiar privileges not per
mittcd to other property, for in
stance:
agricultural products grown
within the year are exempt from
all taxation.
'Cnmanulactured agricultural
prO'luCts pay only Il nominal city
and county tax.
"Agricultural implements and
taXcS.
''Livcstock is taxed at only 10
cents on each 500 by the state
and over Unc-third i'll value pays
no taxes:
Farming land has no city taxes
to pay. while real estate in cities
pays also county and, Of course,
state taxes.
Money. bonds, stocks. mort
cages, notes and accounts arc
taxed the same by whomsoever
owned and farmers who have
such property pay only the state
taxes thereon as do other owners
Uf such property
These advantages, Mr.. Clarke
added, ARE fair enough and alto
%cther proper, but they should go
farther as land used for farming
purposes represents a class of
property which theoretically
should not be taxed at all as it is
not in some state" The reason for
not taxing farm land, he said, is
that the wealth and prosperity of
a state depends on its products
and there should be no limitations
on agricultural enterprise which
creates more property to tax and
should therefore be encouraged.
Lower taxes on farm lands, he
said, means more farms and more
products and raw materials.
Pointing to the fact that the
there is at least $3.5OOQOO,OOO of
taxable property in state which
is paying only about 90 per cent
of its value, Mr.. Clarke said that
while it is not explained what this
property is, it is known that the
natural resources of the state
have never been taxed at anything
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