The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-27

pies was that all property should be
taxed upon an equality. Another was
that no citizen should be exempt
from making a fair contribution to
the support of government. ThcN
proceeded to enact these two princi-
Piles into law, and unless you dis
agree with the principles it is pretty
hard to find any fault with the leg
islatiOn they enacted. The new law
provides that all taxable property
shall be assessed and taxed upon TIC
basis of Il taxable valuation equal to
T5 percent of its actual value. There
is no distinction between various
classes Of property and there are no
partial exemptions with the single
exception that farm buildings are ex-
empt.
"Thcrc were those of us who
doubted the advisability of making
so complete change at Il single SEES
sion of the legislature. This doubt
less was based not so much upon dis
agreement with the principles upon
which the new legislation was based,
as upon the belief that when legisla-
ton is enacted which has the effect
OF making economic changes, it is
more prudent that such changes be
made gradually in order that other
economic factors may be given TIME
in which to adjust themselves. Among
those who entertained this view was
| Governor Nestos. He advised legis-
| latOrs that he believed it preferable
to make only portion of the changes
at the 1923 session of the legislature
| and thus allow the two years inter
vening before the following session
as. a period for observation of the eff
| feet of the change thus made, and as
a period of reimbursement to the new
| basis. Members Of the legislature,
however, thought otherwise. They
realized the force of the statement
that economic changes should be
made gradually but they emphasized
! the fact that the proposed legislation
| sought merely to correct Il serious
injustice which had been committed
against farm lands, and they adhered
to the position that they should not
delay the correction of an injustice
merely because that correction
brought with it economic changes
more or less abrupt. They pointed
! to instances Of farm lands which |
were gradually being wrested from
their owners by the burden of sup
porting high schools in districts |
where the majority of the school
patrons contributed very little to the
support of the schools. In other
words they put it that the owners of |
farm lands in such districts were
paying for the education of the chill
dren of those who lived in the cities
and villages, and they conceived it J
to be their duty as legislators not !
only to correct the injustice but to
do it at once. Their attention was
called to the fact that if all property
was taxed upon a uniform basis of
IS percent of its value the result
would be Il decrease in the amount
of taxes to be paid upon railroad
property. Their reply was twofold.
Why Change Necessary
"First, that if it was necessary in
order to tighten the burden upon
farm lands to also forego Il small
portion of the revenue which had in
recent years been coming in from |
railroad property, they should not
on that account recede from their
pledge to- reduce the proportion of
taxes paid by farm lands and,
Second, that if their principle was
sound as they claimed it was that all
property should be taxed upon an
equality, then there was no reason
why they should refuse to treat rail
roal property fairly simply because
it was railroad property.
"Their view prevailed as is proper
in our form of government. The
governors approval of the leg.sla
ton followed as matter of course
for he had definitely committed him
self to favor legislation which would
relieve farm lands of portion of
their excess burden.
There, was another element of
public, opinion which exercised
marked influence In the shaping of
this legislation and that was the
opinion entertained by those who
believed that the high assessed val.
uation which we have had in recent
years has in itself contributed to ex-
travagant expenditures. In 1918 the
aggregate assessed valuation of pro-
perty in our state was 1888, 900.
The following year in 1919, as re-
suit of the new legislation the as
sessed valuation jumped to $780,
100000. 1t was slightly less in 1921
and 1922, being in 1922, $1,30S, 100000.
This tremendous increase in assess
ed valuation was held by some to be
one of the chief causes of what they
considered were eXtravagant public
expenditures, and there was d de-
mand that the assessed valuation be
reduced. The new legislation was a
recognition also of that element ofI
public opinion and resulted in de-
creaSing the assessed valuation by
$223. 0O0, 900.
Could Issue Bonds
ut is, Of course. evident that with
the higher assessed valuation taxing
districts could bond themselves for
larger amounts than would have been
possible under thalo assessed val-
uation in effect prior to 1919, and
these, large bond issues necessitated
levies for interest and for sinking
funds which constitute in many dis
tricts. no small portion of the total
tax burden. F!