Albuquerque morning journal., 1922-12-23
TAX PROBLEM IS
CRITICAL, Says
THE commission
Rate Is Mounting Yearly
and Values Decreasing;
Burden of Bonded Debt
Cannot Be Increased

EpeClAi 10 Inc JnHTHhi
Santa Fe, Dec. 22.-The problem
of taxation in New Mexico, frankly
described as indeed critical" is
discussed in all it's phases in the
biennial report of the state tax
commission, Just filed with Gov
M. C. Mechem. The report is sign
ed by Joseph E. Saint, chief COM
missioner. and George L. Ulrick
and j. r. Aguilar. commissioners
There is no minority report, dis
senting, and Chief Commissioner
Saint declares the commission
Stands pat" upon the findings and
recommendations.
Taxable property on the rolls
reached the peak of s405,000,000
in 1920, but slumped to $331,O00,-
600 in 1922, a decrease of approx
imately Is per cent.
Rato Grows Steadily
Individual taxpayers have been
subjected to a steady increase in
the tax rate since 1917, it is shown.
In that wear the tax upon $1,000
of property was $3.50, climbing to
$17.20 in 1918, to $28.91 in 1919,
to $27.55 in 1920. and to $29.71 in
1921.
A vast deal of the property own
ed in the state is escaping taxation,
while more of it Is put on the rolls,
but grossly undervalued, 1t is
shown in the tables appended,
showing the ratio of sale of loan
value to the taxable value. In
handing the report to newspaper
men, Mr.. Saint declared that If all
the property in the state could be
placed upon the rolls at its actual
value, It would be possible to re-
duce the present tax levies at least
SO per cent, How to get the prop
! erty on the taxrolls at it's real value
is the question for the legislature
and the tax authorities to solve, in
the judgment of the commission.
Real estate in all the counties
/ bears a ratio of only 40 per cent,
the tables show. Dona Ana county
is shown to have the highest ratio,
81 per cent, but the average for all
the counties is greatly reduced by
such counties as Valencia, showing
20 per cent, and Torrance, with "a
per cent.
Stock Escapes Taxation
How livestock is escaping taxa
tion is shown in an examination of
conditions in fourteen counties. In
| Quay county twenty-five persons or
firms were assessed with 4,1S3 cat
tie, 3S horses. sos sheep. at S76, -
545. These same persons or firms
borrowed $120,629 on 4,90S cattle,
62 horses and 1860 sheep. About
the same proportion is shown in
the other counties investigated.
In 1921 the state spent every
$500 collected in taxes on this
basis: Schools. S50.9S; roads,
$l7.66; all other Estate and coun-
ty), $S1.36. In Union county the
basis was Schools, $60.95; roads.
$l4.5O; state, county, interest on
bonds, salaries of every kind, ma
ture and character. $24.55.
The bonded debt of the state has
increased from S6.000,0O0 in 1915
to $4,000, 900 in 1921.
Burden Is Staggering
Sounding a warning, the report
says:
I'VE cannot continue to forever
add to our bond issues. They, as
above stated, have increased in
several years $12, 900, 900,
We should not lose sight of the
fact that federal taxes added to
those who are now paying to the
state, county and municipality are
about all our people can manage
to stagger under. If those who are
trying to develop our resources
who own and control our enter
prises, are taxed in excess of the
amount they, in times of stress can
ffnT1 tn Tho - ,t,tIl -
taken out of business and all in
centive will be gone. Few are will
ing to work against time"
In discussing the decreases, and
some Of the causes, the report
finds:
According to present prospects,
the 1928 assessment will in all
probability show further de-
crease.
1T goes without saying the
present legislature will be asked tc
make appropriations that will not
only equal, but probably exceed
those made for 1921 and 1922. II
they are made or granted, addition
al methods of raising revenue viii,
have to be adopted, as some rates;
for instance, state and county, are
limited by law. w..
"Deflation, drouth and extrava-
gance have brought many of our
people to the verge of ruin. Sew
| eral years must elapse before many
can recover; some never will. In
view of these facts it is needless to
! say We will be forced to spend less
! The legislature, it is fair to assume,
wilr be asked for many things that
| cannot be used to advantage. AS
we are not, however, in a position
to pay for them, we should try to
manage to get along without them
until we can"
This situation calls for definite
action, looking toward the placing
| of the states governmental
finances upon q sound basis. We
can no longer continue policy
| which cannot fail to result in dry
ing up the resources of public
revenue. In the solution of our
problem the first question to be
answered is what is the approxi-
mate taxable wealth of the state
| of New Mexico, and the second is
what rate of taxation are fha DnO-