The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-10
RAISE INCOME
TAX URGED0N
LEGISLATORS
Tax Commissioner Suggests
1t as Better Medium than
Money and Credits Tax
URGES MINERAL TAX
Would Have Coal Deposits,
ETC., Taxed on Different
Basis than Other Property

A higher income tax in place of
a money and credits tax and upon
coal, mineral or oil deposits separ-
ate from the land tax were among
the suggestions laid before the 10 mt
senate and house tax committees last
night by Tax Commissioner C. c.
Converse.
Appearing on request at the first
meeting of the committees Mr.. Con-
verse laid before the Legislators
many questions arising IN the tax
commissioners office. He said he
would not urge a set program, but
that his office would call attention
to some defect and that the services
of himself, Lyman A. Baker, secre-
tary, and Gordon V. Cox, income tax
attorney, were at the disposal Of the
comm ttee.
81 would suggest" he sad, that
in considering tax legislation, con-
sideration be given to what effect
the change will have on the tax
burden"
He pointed out that the tax bur-
den had shifted since 1915. Point :ng
out that tax on bank stock was
matter to be cons: dered, he said that
the national congress limited power
of the state to tax national bank
stock, and that the legislature ought
therefore, to place the state bank
stock tax in line with what is per-
III: tied by the national congress. He
suggested tax on a so percent ba-
sis, if present exemptions on other
property are not changed, probably
would stand up in the courts.
Exemptions Problem
He mentioned the exemptions, and
said changes had been urged by
many, but suggested no particular
Hesitation.
Heat, light and power companies
now are assessed locally, he said,
and suggested they be assessed e tn
er by the tax commissioner or state
board Of equalizat on, as is done
with other utilities. The same was
urged with regard to hgh-pow
transmission lines since many cover
several taxing districts.
There IS no provision now for tax
ing mines, mineral reserve or oil if
there IS any in North Dakota, diff
ferent from other property, Mr.. Con-
verse said. A different method of
taxation is needed. He in some cases
land was sold and the mineral r ght
reserved. The party reserving the
mineral right pays no tax on it.
He urged some tax.
The tax limitation law has been
the subject of much d scussion. He
offered services of his office in solv-
ing the problem, and urged lImi-
tation upon power to issue warrants,
so that the amount issued could not
exceed the taxes levied.
Substitutes for Warrants
In this connection Mr.. Converse
suggested new plan. He sa cities,
counties, etc, might be permitted
to issue cert ficates of Indebtedness
in anticipation of taxes, as the fed
eral government does, sell them and
pay bills in cash. By disposing Of
these cert ficates less rate of in
terest might be obtained than is
necessary on warrants, he sad.
He urged a gross earnings tax for
telephone companies, saying that
hundreds of small farmers telephone
companies now complain of the pres
ent method, and that scme of them
are almost taxed out of business.
Regarding the money and credits
tax, he said that most of the prop
crty sought under it escaped taxa
ton. He urged the medium of the
income tax. He said the state could
get more money by it. The present
income tax on corporations has yield
ed well, but the individual income
tax rate is too low, he said.
The oil tax, he said, eng IA cent
gallon on some grades and / cent a
gallon on others. should be equalized.
1t might be, he said, made uniform
ly cent a gallon.
A number of county treasurers
he said, ask that taxes be made due
January instead of. December 1.
The committees decided upon a
policy of naming committees to
work out many of the tax problems.