The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-12-21
History of Mine Taxation in Montana
Idaho Has Similar System

b lature TO amend the law with the view
TO deriving more revenue from the
= mining industry The attitude of tn,
, governor was SO unfair to the mining
industry that the Montana Mining as.
ISOLATION through its president Chas
, $. Muffley issued a lengthy statement
) to the public in reply to the govern
or's contention. The system of mine
taxation in Montana is very similar
to that under the laws of Idaho. and
for that reason the following extract
is interesting to the people of Idaho:
History of Mine Taxation.
In his speeches the governor pre-
tends to give the history of the adop-
ton of the net proceeds system of
mine taxation He gives the impress
sion that this theory of mine taxation
was first put in force upon the adop-
ton of the state constitution in 1889.
He states that the mining interests
were in control of the convention. and
by a narrow margin succeeded in fore
ing the adoption of this system of
mine taxation. which ne pictures as
resulting in the partial exemption of
mining property from taxation such
as that imposed upon other species of
property.
A brief reference to the theory of
mine taxation. and the history of its
adoption in Montana will be useful
not alone in demonstrating the further
inaccuracy and unreliabnity of these
speeches, but also the fact that not
alone under the constitutional system
has the mining industry been bearing
at least its share of taxation. but by
the additional burdens put upon it at
times when the tax receipts were
foundinsuflicient to meet the appro-
priations, a system of double taxation
upon the mining property has grown
mp. and is now in force in this state!
What the governor terms the NET
Proceeds System or Mine Taxation"
did not originate i'm Montana with the
makers of the constitution The leg
islative assembly of 1879 took mp the
problem of SO assessing and taxing
mines and mining claims as to derive
from them their just share of taxes
The industries of the territory, ex-
cepting mining and stock raising were
comparatively in their infancy
1t was obvious that the greater por-
ton of the governmental revenues
must be obtained from the mines. and
an equitable system of taxing them
adopted.
In arriving at such method, two
main factors We're presented. The
first arose through the difficulty in the
ordinary way of putting a fair, reas-
enable and certain value upon a min
ing claim
Every one who has had even cas-
ual observation of mining operations
realizes that it is physical impossi-
bility to determine the true, definite
value of a mine until the value of that
mine has been realized and the mine
is exhausted
Any industry whose property is sub
ject to taxation in an amount to be
hxedat the whim and as the result o.
guesswork OF individual assessors or
assessing boards. as they come and go,
would certainly lead a most precari-
Gus existence
Actually Tax Full Value.
The other factor which presented
ITSELF and one which when fairly
solved did away fairly and reasonably
with the difficulty of meeting the I'M
certain elements of value presented
by a mining prospect lay in the pc
culiar character of the property itself.
A mine, as distinguished from prac-
every other species of property
has no value or earning power except /
such as lies in the metal contents of
the ores and these ores have no value /
until found, developed, mined and /
their contents extracted. AS the ores /
are extracted, the value of the mine, |
the capital of the investor is reduced /
to that extent Mining is a wasting /
process. In this the mine differs from .
other species of property.
The buildings, whose value for tax
alton purposes, depends on it's rental
value. retains less depreciation, its
income producing value from year to
year. The city lot is not destroyed
by use, but retains its value through
the years. The farm, when properly
handled and kept up. carries its earn
ing power from year to year The en-
tire value of the mine lies in the pro-
ceeds of its ores.
When you tax these from year to .
year, as realized, you tax the full value
Of the mine.
Some of the mines of Butte have
been operated for over 40 years. To
have taxed. year after year, the ores
which have only been removable to-
ward the end of the. period would
have been to have taken more than
the full value of the ore long before
it could be reached for extraction
That the constitutional system of
mine taxation is an equitable one, we
again turn for proof to Governor Dix
IN. Repeatedly in public sessions of
the state board of equalization, and /