The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-01-03
MetaIliferous Mine Taxation.

Metalliferous Mine Taxation
Two years ago, the legislature i'm
posed a gross tonnage license tax of
5 cents a ton on all coal mined IN
this state. This license tax is now
yielding about $147,056 per year to
the state treasury. Pennsylvania, a
little later, imposed a similar tonnage
tax on the output of her coal mines
that yielded about SO, 200, 900 per year.
In 1921, Minnesota enacted a license
tax of 6 cents per ton on the entire
output of her great iron ore deposits.
Under the provisions of our CONT
tuition, Montana has a dual system of
direct taxation, one based on "net pro-
ceeds," for the mining industry, an
other for all other forms of visible
property, based on cash value, regard
less of whether tn property yields
any met proceeds" or not. During
the past few years, the farm lands of
Montana have shown no met pro-
ceeds" and still they have been called
upon for their regular quota of taxes.
During the same period, few banks,
stores, houses, or other forms of prop
erty have shown any met proceeds"
and yet their owners have also been
compelled to pay their regular amount
of taxes.
Under our present law governing
taxes on met proceeds" and license
tax on gross production, for the year
1922:
Oil paid 1 per cent of gross pro-
d%uction; coal paid 1868 per cent of
gross production; metal mines paid
4 0GE ,ao1s oonf nf urNcC nr0Irrcfion ~
license tax. The larger metal mines
of the state paid nothing, except the
minimum fee of one dollar.
For the tax year ending June 1,
t 1922, under. the Is mill license tax on
met proceeds" of metalliferous mines
l pr cent gross production on oil
and 5 cents per ton on coal, the taxes
: assessed for the state treasury from
: thee three sources of mineral wealth
: were as follows:
: Metal mines, producing l.
723,801 tons of ore
. valued at $40, 240, 692,
t paid ..--~.$13,559.O 90
!, Oil, producing 1,737,859 bar
1 rels, valued at ~$2,811,687,
: paid 2S,116.00
Coal mines, producing g.
941,120 tons, valued at
$9,4O3, 191, paid -----.--147, 056.0O
This discrepancy in support of the
state government is so patiently I'M
just that l would recommend the en-
actment of a license tax for metallif-
e erous mines, of IL cents per ton on
the gross tonnage of ore produced. In
# that event, the present Is mill "net
proceeds" tax should at the same time
be repealed, as it is producing and in
4 significant revenue.
j. HydrO-Electric Power.
er Next to its land values. probably
the greatest potential wealth of the
state lies in its unequaled water pow
er. Most of the states now take a
1t percentage of the gross returns OF
hydro-electric power generated with.
in their borders, in lieu of advalorem
Id taxation. AS there was no hydro-elec.
W trio development in Montana, and lit
lie tie, if any, in the nation itself at the
s. time u constitution was written, this
a. form of wealth is not enumerated
at along with railroad and mines in the
s., constitutional limitations regarding
their assessment for taxation.
~: It is my present Judgment, baset
Is on the experience of the last tw,
years as a member of the state boar,
of equalization, that the state treas
ury should receive not less than
:" per cent license tax on the gross pro
% ceeds of hydro-electric power compa
= MES, leaving to the counties the ad
valorem property tax on the actua
cash value of their physical plants. i
III this way, there would be an equitabl
division made between the physica
~ cash value and the entity cash valu
> of these properties. In this way
~ the present delinquencies of the gen
eral fund of the state would be rein
III forced in the approximate yearly sur
of 100000.
VI Concurrent with the enactment O
~ the license tax above outlined, ther
~ should be a proper amendmnt of Sec
2145 of the Political Codes.
.Iv The Greater University.
ed The State University at Missouls
it the Agricultural College at Bozemar
DO. the School of Mines at Butte, an
al the State Normal at Dillon are tn
90 separate units of the University O
ma Montana. The growth of the Unive1
I'm sity of Montana is indicated by tn
ed following table, showing the stead
dy increase of the student body at eac
tie of the subordinate units:
ak 1919 1920 1921 1872
.rs 1885 1886 1,442 III
ur 887 1925 9S1' 1,20