The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1925-01-23
RespectAlly sub4ttted.
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proposal carried any promise of low
er motor vehicle taxes is entirely un-
warranted. The highway department
repeatedly declared its purpose to rec
ommend 2-cent gasoline levy in adj
dition to the present vehicle tax, max
ing plain that the two combined would
only bring the total to figure favor
ably comparable with the general
average for all the states.
Organized opposition to the gas tax
proposal, conferred in group of oil
dealers, circulated thousands of leaf
lets and post cards insisting that the
gas tax would be in addition to the
present vehicle tax.
Universal popularity of the gasoline
tax probably is due to its payment in
small amounts, which makes it "hard-
ly felt" 1t is included in the f1uc-
tuating prices of gasoline. 1t is paid
on or 10 gallons at time-in nick
els and dimes. Yet a 2-cent tax in
Minnesota in 1925 will yield probably
$4, 100000 for goods roads.
A proposal to put the proceeds from
2-cent gasoline tax into the trunk
highway sinking fund has been an
nounced in advance by a member of
the legislature. 1t is one of merit and
desc wing of serious consideration.
Highway Bond Proposals
Bonds are essential in every equit-
able scheme of highway development.
Without them, no state has made any
noteworthy good roads advancement
School buildings, court houses, water
and sewer systems and like public
improvements cannot be built and
paid for from single tax levy. Nor
can the highway betterments demand
ed by economy be fairly financed with
single annual tax levy.
Fully half of the Improvements
new construction on Minnesota
trunk highways have been financed
with county reimbursement bond
funds. Those authorizations having
expired, advances from that source
are cut eff.
AS disclosed in the highway report,
$33, 100000 of county reimbursement
bonds and similar obligations are out
standing. All interest certified has
been paid from motor vehicle tax
receipts. From the same fund set
aside $2,000,O00 in sinking fund
against their redemption. This money
is earning 465 per cent annual inter-
est, the state board of investment re-
ports.
Sinking fund allowances and inter.
est payments are drawing heavily on
monies which would be going into new
highway improvements if the depart
ment was concerned only with "a good
roads showing" There is no require
ment that trunk highway funds be
used to create sinking fund to re-
tire county reimbursement bonds at
maturity. Nor does the constitution
provide even for payment of interest
on those obligations from motor vehi-
Gle tax receipts.
However, the state public examiner
gave notice that in the absence of
other satisfactory provisions, every
county which has issued reimburse
ment bonds would be required to levy
taxes and accrue funds for their re-
demption. The highway department
voluntarily sacrificed to this end large
amounts needed for immediate i'm
provements on trunk routes. Fur
Their, reimbursement bonds bearing
high interest rates have been called
in and paid from current trunk high
way income. This is perhaps best
evidence that the department is keep
ing faith with the public, assisting to
avoid added county tax burdens, and
placing economy even before the big
program which it is charged to carry
out.
Highway Funds Involved
County reimbursement bond funds
are profitably invested in highway
improvements, and earning large divi-
dends. The bond issues, however, and
the amortization policy adopted by
the department, are seriously involy-
my trunk highway funds.
Authorized in large part even before
adoption of the new highway plan and
issued Independently by the officials
of the various counties, the bond ma
TURTLES are not in the serial order to
be desired. Bonds totalling $23.000,-