The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-12-21

would apply to timber lands It can
leauIly pe seen is much more IOrclOis
appncaDle TO NINE. Onu cut. the
timber VIII continue TO grow upon thD
Land, ana the lands. II properly cared
Tor VIII grow other forests. l5ut with
the mines. nature ceased her opera
tons when she placed the mineral IA
the ground.
intent OF Constitution.
That the makers Oh our constitution
in selecting the system adopted ioi
the taxation OF mines did not 90 ST
with any idea OF eNemptng such prop
erty in any part from taxation, bu.
rather arrived at tins method as on,
calculated to cause the mines to re-
spond in fun to their due part of the
revenue requirements, is shown by a
review of this subject by our supreme
court in the case OF Northern Pacific
Railway Co. vs.. Mjelde As Mont, page
PSI, at page 296, where the court in
part says:
the problem before the con-
stitutional convention was not how to
exempt mining property from taxation
but rather how to compel it to respond
to the reasonable demands of the state
for revenue. and at the same time
protect it against such eXactions as
would or might discourage prospecting
)r development The debates OF the
convention SO far as they are avail
able in their published form. disclose
this fact and the history OF our mining
legislation furnishes added evidence
of the correctness. M The net pro-
ceeds OF mines were taxed as other
taxable personal property, and the
surface of patented mining claim
was subject to taxation as other tax
able real estate. When then. the
trainers of the constitution removed
this species of property from the eN
empt to the taxable class, they must
be held to have acted deliberately
with the purpose as disclosed by their
debates, of subjecting mines and min
ing claims to what in their judgment
was the equitable proportion of the
burden of governmental expense"
The governors statement that those
interested in mining controlled the /
constitutional convention and succeed /
ed i'm adopting this system of mine /
taxation by narrow majority, ano /
the impression that he gives that this /
is the inception of this system of tax
alton, are erroneous.
The report of the proceedings of the I
constitutional convention shows that /
this portion of our revenue sections /
of the constitution was adopted by "a /
large majority, and in fact that there /
was little serious controversy over the /
matter In fact. substantially this /
system of mine taxation had been
adopted by the territorial legislative
assembly by act approved February L. /
1879 so that at the time of the adop- /
ton of the constitution this system
Of mine taxation had been operating /
successfully, and apparently in a
manner acceptable to the people of
Montana for a period of more than 10
years.
More Than Law Requires.
Those familiar with the operation /
of the mine taxation laws of Montana .
will be surprised to learn that the /
constitutional system has never been I
followed in practical operation, but .
that at all times since the adoption of /
the system a substantially greater
burden has been cast upon the min
ing industry.
Under the provisions of the consti-
tuition and the enforcing statutes
adopted, a mine is first assessed at I
the government price Before the
adoption of the classification law I,
adopted in 1919, other classes Of prop
erty were usually assessed on an av-
erage of 80 per cent of full value AS {
the mining claims We're assessed at j
100 per cent of the government price \
and other property at not to exceed h
on an average of 80 per cent, it will
readily be seen that the result was
tax levy upon the mining claim three
and one third times that contemplate
ed by the constitution and the law.
Next. under the constitution if the
surface of the mining claim has value I
'or purposes other than mining. and {
IS so used. it is assessed in full for this !
additional value Through this pro- s
vision the assessment rolls of the mi O
ling sections have been very substan- S
tally increased. For example, in the s
city of Butte, a large part of the land
within the city limits is upon the sur s
face of mining claims, and having ad-
Itional value for town purposes it is
assessed at prices running up to more c
han $1,000 per front foot. {
Again. all improvements, buildings, {
mills, shelters, reduction works 9
loists, machinery etc used in con- c
nection with mining operations, are f
lssessable at their full cash value.
The governor calmly brushes this 7
aside with the statement t
hat it simply means that the mines t
are taxed upon their tools and ma t
the same as a farmer is. But s
, casual visit to the mining opera !
ra.r-ar D. bod cd .r