The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-09-15
STATE TAX
RATE SHOWS
SHARP DROP
Mill Rate Fixed at APP Com
pared With ass
Last Year
TAXES DROP $780, ,l66
Begin Sinking Fund Pay
mentS on Industrial
Bond Issues
TAXES DROP $362,l66

Increased state revenues from
sources other than taxation made
possible the reduction in the
state tax levy announced yester-
day by the state board of tax
equalization, Gov. A. &. SOrlip.
chairman of the board, said to-
day.
I'VE had the regular appropri-
atiOns and the other ordinary
expenses of the state to meet,
but found that We could allow
for these and still make u reduc-
tiOn. even after the tax valua-
tion had been reduced" said
SOrlie.
Chief among the items of state
revenue from sources other than
taxation the executive listed the
state cigarette tax which he eX.
poets to produce 100000 during
the bi-ennium.
The state tax levy for 1925 today
was fixed by the state board Of
equalization at $4,2l5,662 The state
tax rate was fixed at 4.22 mills.
Last years levy of 4.55 mills pro-
duced revenue of $4,577,s2s, this
years levy marking decrease of
$362, l66. The 1925 general fund levy
was placed at 2.40 mills, estimated
to produce $2,397 ,533 The genera
fund levy in 1924 was 218 mills and
produced $2,Sl7,125.
The 1925 levy for sinking fund
and interest on state bonds is ~ of
mill and will produce S769,2OS com
pared with rate of 70 mill and
revenue of $704,28l in 1924.
Include Bond Interest
Bond and interest payments will
be divided as follows: Bank bond
payment fund .35 mill $349,64O; mill
and elevator bond payment II mill
$l69,625; milling bond payment fund
.25 mill S249,743.
The 1924 interest and sinking fund
levy was divided as follows: Bank
bonds .l2 mill $l2O,734; mill and
elevator bonds "a mill $24l, ,46S; mill
ing bonds .G6 mill $60,367; real estate
bond payment fund .2S mill $2S1,71o.
No payments on the latter fund are
provided for by the 1925 levy.
Total levies made by the state
board reach 3.l7 mills and will pro-
duce $3,l66,74l. In 1924 the levy for
these purposes was $50 mills anu
produced $3,52l ,40G.
legislative levies were made as fol-
lows: Soldier bonus fund to produce
$99S,972; home builders association
$49,949, bringing the total legislative
levies to LOS mills.
Show Decrease
Last year exactly similar levies
produced $l,0O6,1l6 and $5O,306 re-
spectively. a total of $l.556,442. The
1925 general fund levy was decreased
$419,592 as compared with 1924. Lew
les on account of industrial bonds
were $64,927 and the legislative lev
les for soldiers bonus and the home
builders association deficit tax funds
were decreased $7,5Ol.
A statement by T. H. H. Thoresen.
state tax commissioner, shows that
56.87 per cent Of the 1925 levy is for
the state general fund to take care
of running expenses; 1925 per cent
is to provide the necessary funds
to pay interest on and provide the
sinking funds for the retirement Of
the state industrial bond issue; 23.7
per cent was on account Of the SOL
diers bonus and 1.18 per cent to take
care of the deficit incurred in con-
nection with the operation of the
home builders association.
In 1921 the general fund levy
amounted to $3,l40,381; in 1922 it
was $2,93O,666; in 1923 it was $2,-
156,420 and in 1924 $2,s17,125.
First Sinking Fund
"This is the first year in which
sinking fund levies have been made
on account of industrial bond issues"
said Thoresen. "The laws creating
the various state industrial enter
prises provide that the state board
of equalization shall levy an amount
equal to one-fifth of the principal
of the various bond issues for a five
year period previous to the maturing
of such bonds.
'Under the law levy should have
been made the last year to take care
of million dollar issue of Bank Of
North Dakota bonds due July l, 1929.
and there should also have been made
a levy to take care of $25O,OOO mill
and elevator milling bonds due July
!, 1928, and a similar issue Of $780,
900 due July l, 1929. The 1924 state
board of equalization failed to make
these levies."
Rates for 1926 were based on an
assessed valuation of $99s, ,972 900
compared with valuation of $l,OO6,-
10000 year ago. Comparison of the
state levies for the years 1921 to
1925 inclusive follows: 1921, $4,660,-
1856; 1922, $4,765,2s4; 1923, $4,0l3,-
359; 1924, $4,577, 1926.
The fact that taxpayers are more
prompt in payments than in other
years in addition to increased state
revenue from sources other than tax
alton is factor in making a substan-
tial tax cut possible, T. H. H. Thore-
sen, tax commissioner, stated.
Heretofore it has been necessary
to make allowances for delinquent
taxes and delay in their. collection
when fixing the tax rate" said
Thoresen. "Now people are paying
their taxes more promptly"
Among numerous other factors, he
said, is the one that the state. is
spending less money than formerly.
No provision was made for a state
levy to pay interest on the @2O, ,0O0,-
600 in farm loan bonds outstanding,
he said, because these are being
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