The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-29
TAX PROGRAM
BILLS PUT IN,
LEGISLATURE
Measures introduced in House
Saturday Virtually Com
plete Proposals
TO GO ON CASH BASIS
Bill Would Let Cities Borrow
Money Instead of Issuing
Warrants
TO GO ON CASH BASIS

Placing all towns, villages, cities,
townships, school districts, park dis
tricts or other political subdivisions
upon an absolutely cash basis, the
three measures introduced in the
house by Rep. j. A. Jardine, Cass
county, Und.) Saturday call for a
most sweeping change in methods of
doing business and are aimed espec-
tally to abolish the discounted
warrant" evil.
! The measures prepared ,at the di-
rection of Tax Commissioner c. c.
Converse after prolonged study and
in collaboration with county and
state officials and Gov. R. A. Nestos,
are aimed to check the indiscrimin-
ate issuance of warrants which are
"hawked about" on whatever mar
ket presents at loss to the original
warrantee of from IL to so percent.
At the present time there is no
limit to the number of warrants
which a village, city, county or
school district may issue in payment
Of bills. These warrants are issued
in lieu of cash and are registered
and draw or percent interest.
H. B. 129 specifically declares that
no warrants may be issue "in excess
of the, cash on hand'. The measure
permits the taxing district to 60 in
to the money market and to borrow
at the best rate obtainable sums up
to the amount of the taxes which
may have been levied but wnich
have not as yet been collected,
against which warrants may be is
sued.
Teachers Warrants are now dis
counted in many places at percent.
They draw z or percent make IL
or 13 percent interest which the
purchaser Makes" explained Mr..
Converse. Contractors in making
bids will offer to handle warrants
and will then boost the prices Of
their bids to care for the discount
they must take on the warrants"
On Cash Basis
The proposed law puts all coun-
ties, cities. villages, townships,
school districts, park districts and
other taxing districts on a CASH
basis. Certificates of indebtedness
are issued and these are to be regis
tered with the. county auditor who
keeps record Of the moneys at all
times. When the tax money comes
in to the county it is not given back
to the taxing district but is held by
the county treasurer and county au-
ditor until sufficient is received to |
take up the certificates Of indebted. |
ness.
The limit Of Certificates of in
debtedness" is dependent upon the
affidavit Of the county auditor of the
amount Of outstanding taxes.
H. B. $50 is designed to aid small |
taxing districts market comparative
ly small bond issues. At the present
time when q school district or vii |
lage issues bonds the buyer must go |
to the clerk to close the purchase.
This would require that bond houses
have . small army Of travelling rep
resentatives. They do seek small |
bond issue on that account and con-
sequently such issues with their
neager publicity and no competitive |
bidding are usually hard to market
or result in high rates Of interest
paid. The bill is aimed to facilitate
the issuance Of such bonds and make
all bond transactions carried out |
legally through the centralized coun-
ty auditors office.
.G, Limits Levies
H. B. 1S1 il an act to limit the
aggregate amounts that may be
levied by taxing districts providing
maximum limitations upon the rate
in mills and providing for the sus-
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