The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-27
REASONS WHY
TAXLAWSWERE
CHANGED, GIVEN
c. c. Converse. State Tax
Commissioner, in Explana-
ton at jamestown
AIM TO CUT FARM LANDS
4
Necessary to Make Shifts in
Taxes to do This, Says
Commissioner

"'"" "hNh -''"beiiAu tnc NoTCH bH
kota legislature to make marked
changes in the state tax laws were
explained to a public gathering here
by {. G.. Converse, state tax commits
sioner, Mr.. Converse said in part:
"In order to understand that legis
lation, it is necessary to take up two
other features of the situation First
the public demand for Il reform in
tax legislation at the time the leg.
islature convened, and second, Ger.
tain features of the tax Legislation
which was in effect before the last
session of the legislature. During
We year 1922 there was Il wide spre ad
protest against the amount Of taxes
upon farm lands and an insistant de-
mand throughout the state that leg
islation be adopted to relieve fann
lands of an unduG portion of the tan
burden which they were bearing. In
response to that demand, members
OF the legislature pledged themselves
in advance to'enact Legislation which
would relieve farm lands of portion
of the burden. The discrimination
against farm lands was felt most
kcenly in school districts which main
tanned Il four-year high school course
~ such districts it was not uncom-
mon for taxes upon farm lands to be
AS much as 5000 per quarter section
per year and in some instances which
have been reported but not verified
the taxes were double that amount
The owners of farm lands in such
districts had not reached the point
reached by the Arizona taxpayers
who resisted collection Of the taxes
ahmed with firearms, nor had they
reached the point where they were
prepared to do as the Arkansas tax
payers did and appeal to the Federal
government But the situation was
very serious, for they were unable
to meet their taxes and some of them
were confronted with the prospect of
being deprived through taxation of
land which represented the savings
of life time of effort.
Why So High On Farm Lands
"This leads US to the next ques
ton which is, what was it that caus-
"a the taxes to be so high upon these
farm lands. The reply is that it was
due not alone to large school cXpen-
ditures but also to the so-called class
ification law which classified pro
perty for taxation purposes and to the
partial exemption law which provided
partial exemptions from taxation for
several classes of property. In order
to understand this, it is necessary
to know that for taxation purposes
property was divided into two class
es, known respectively as Class One
and Class Two. Class One was taxed
upon the basis of its full value, while
Class Two was taxed upon the basis
Of. SO percent of it's value. Real es-
tate and railroad property, as well as
certain minor classes of property,
were placed in Glass one and taxed
at 100 percent OF value. Nearly all
kinds of personal property and also
residence structures in citi es and
villages were placed in Class Two
and taxed upon so percent of their
<alue. SO much for the classifica-
Mon law The discrimination was
further accumulated by the partial
exemptions which were applied to
four classes of personal property and
to residence structures. TO, illus
trate: If IL residence occupied by
the owner as his own home was APP
praised by the assessor at $4,000,
there was first deducted from this
$4,000 by way of exemption the sum
Of $500, leaving $500, and then so
percent of this remainder was taken,
giving taxable valuation of $3.50.
exempt from taxation but experience
demonstrates that in the practical
administration Of the law mos. of
the value is deemed to be in the land,
so that often the land is and was
assessed at as much without the
buildings IS it was worth including
the buildings. This would not be
true, of course, in cities and villages
where most of the value is in the
buildings .and only a small portion
of it is in the lots. There was a SIM
flar exemption of $500 ON household
furniture and similar exemption of
$500 for wearing apparel and also
upon, mechanics tools. while there
was a $500 exemption upon farm ma
chinery. But you will readily realize
that in no school district were there
any great numbers of sets of farm
machinery, SO that in the aggregate
the amount escaping taxation through
the exemption of farm machinery was
mot any considerable portion Of the
assessed valuatior of the district.
But there were many residences,
many sets of household furniture,
and many outfits of wearing apparel
in each Of these high school districts
so that the aggregate amount of pro-
perty exempt from taxation in these
three classeo was very large, and this
discrimination against farm land ac-
counted, iA a large measure, for the
exceedingly high taxes against which
the complaint was so vehement.
Wanted Revision
when the members of the iegis-
lature assembled, it was found that
the sent(lent was almost unanimous
among them that some change would
have to be made in the laws l have
referred to pertaining to the general
subject of the classification of pro-
peJ&y for taxation and the partial
exemptions; and while there was this
general agreement that those laws
would have to be amended, it was
much more difficult matter to de-
eide precisely what form the amend
ment should take. There was, how
ever, general agreement upon certain
principles which they judged ought