Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1923-02-03
MINES AND THEIR TAXATION
BY Guy Flenner


Editors Note.-The following is
part of series of articles dealing
with freight rates, taxation and
other subjects allied with the future
of the dominant Industries of Idaho. }
The importance of mining in Ida
no to the other industries, to every
line of business and TO every home
is not represented wholly by the re-
ports coming from official sources
showing the output of lead, silver
and gold. In a very large way does
it affect our everyday life by fur
nishing a substantial home market
for our products.
If the Idaho farm produce that is
absorbed by our mining districts
were added to the volume that must
reach far-away, competitive markets,
to that extent would the supply in
those markets affect prices down
ward. Conversely, as these local
markets absorb our produce the
farmer avoids that much competition
and, to that extent, enjoys definite
and larger income proportionate to
the supply in that direction. Agri-
culture being Idahos basic industry,
the effect thereon of mining opera
tions must be taken into serious con-
sideration.
Mining presents the risks associ
ated with the development of the UNI
certain and the unseen. With all
our prospecting and search into the
bowels of the earth, Idaho has only
some half dozen dividend paying
mines out of several hundred that
have had large sums spent on them
Many of these are struggling today
to get into the dividend-paying class,
and the general benefits flowing from
such eventuation grant them unani
nous immunity from any excess
burdens. They have the best wishes
Of all. None would attempt to i'm
pede their progress, for they are le-
Ultimately engaged; they are bring
ing in new capital and they are /
heavy buyers of our farm products
md merchandise.
The producing, dividend-paying
mines, the. heaviest purchasers and
he biggest payroll makers, bear
heir share of public taxation. They ;
ire taxed as to their equipment and
property holdings the same as any ;
ther class of property; and in addi-
ion they pay state tax on net prof i
is. In this respect they are unique c
ontrasted with other kinds of prop :
rty; and it is so in at least one other !
aspect, for every ton OF ore taken !
ut, to that extent diminishes the I
alue of the property. Other prop b
rty is enhanced in value by produc-
on; the mine is deprecated there t
Y. Because of that situation, for s.
ne reason, it had been difficult in t
ygone years to arrive at an accu- s
tie basis of mine taxation. .
Since 1903 Idaho has had on the =. :.
atute books a requirement for a ~
ct profit tax on mines. in addition n,
the tax on tangible mining prop
ty 1t has brought large revenue fiji
the state. tn
Under the former system assessors 81
ade levies which might, and com 10
only were, grossly unfair to this IA
that property, and might. have r.
EN- unfair to the state. 1t was :,
rgely a matter of guesswork and en-
ghly unscientific. Iii
The present law in the long run, la
ings more revenue to. the state and
favored by mining companies only mi
cause it puts their tax liabilities ex
on a definite basis; and, as to the y,e
reproductive mine, it certainly is a. a.
t worth anything in addition to 10
? actual amount spent upon it's t,v
lipment and property holdings
ON which it now pays taxes the wo
ne as any other taxpayer. sta
rhe public generally has had lit boz
Information on this subject nor OF
On the Importance of our mining pu
ustry to state progress. 1t ought zee
be the desire of every thinking 10
zen to familiarize himself with an1
lie of the fundamentals of this anc
at industry as well as of others. |
tics
of