The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1924-12-26
TONNAGE TAXES
GETTING LESS.
CLOSED USTRIE AND
LIGHTER BUSINESS CAUSE
SLUMP IN TAXES.

A message from st. Paul dated
December 81, brings the cheer
ing % news that the money OBJ
tanned from tonnage taxes this year
Will tail snort over Sl,UUO,UVu oven
last year and that already some OF
the Qown-sIaue SoIonS are ngurlng
on a blIl TO increase the occupation
taxes from to 10 per cent. Ihe
ST. Paul dispatch says:
Minnesota faces a decrease OF
more than S1,U00,000 in state rev.
enue for 1920, as a result of cur
tailed iron mining operations for
the current year, officials estimated
today.
This is equivalent to about half
a mill in direct taxes on all Mime
sofa property The incoming leg
islature, working with a new gov
ernor pledged IN his campaign to
strictest economy, also is facing
urgent requests for funds from
many quarters, and the problem of
taxation will be uppermOst through
the session. In view of the de-
creased revenue from iron mining,
it is doubtful whether it will be
possible to make any reduction in
the state tax levy on real and per-
sonal property, even if state eX-
penSes are reduced somewhat.
Revenue from the iron ore occu-
pational tax available for current
expenses of the state will show a
decrease of 100000, it was estim-
ated today. The general revenue
fund, which requires half of the
proceeds of this tax, got $685.
SS1.95 this year from the tax on
1928 mining operations.
Iron ore shipments from the state
for 1928 were 45,305,647 TONS
The shipments for 1924, estimated
by Skilling's Mining Review of Du-
luth, will approximate 31,000,000
gross tons. This represents a de-
crease of 81 percent. The state
revenue fund received $685.
881.95 this year, but on the 1924
operations, payable in 1925, the tax
will show a 81 percent decrease, o.
100000.
In addition to this, the state tax
on, the gross earnings of railroads
will be cut on account of the de-
creased shipments of iron ore over
the three ore carrying roads this
year. The state taxes the mining
companies 6 percent on their net
profits, but gets percent on the
gross earnings of the railroads.
State trust funds were swelled
this year from the occupational tax
and will receive yearly accretions.
but their receipts next year will not
be as heavy as for 1924, for the
same reasons. Under the new law
which went into effect last spring,
half the revenue from the occupa-
tional tax goes to the permanent
trust funds.
The iron ore tax to begin with
went entirely into the revenue fund
of the state for current use, but a
constitutional amendment passed
two years ago allowed part of the
tax to be turned into the perman-
ent funds of the state, building
them up for future years under the
heritage" theory of the tax law.
The last legislature put this
amendment in effect, and the taxes
on 1929 business, payable in 1924
were divided for the first time. so
rercent going to current revenue
40 percent to the permanent school
fund and 10 percent to the perman-
emf UNIVERSITY fund.
The school fund in the last yesr
received S2.3f7, 1O661. and the uni
verSitv fund s591. 7763A. These
funds are invested and only the in
COME usad.
Radical members of the loo
stature are prenaring to fight for
an increase in the occunationaI tax
raising the rate from to 10 per
cent. Otto n. Nellnrroa of Mirnn-
spolis said TODAY that he plans to