The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1925-01-23
CARS HERE ESCAPING
SPECIAL ROAD TAXES.

Although furnishing all state
highway funds, Minnesota automo-
biles and trucks are free from spe-
cial road levies collected in many
states. Instead, the new highway
plan has brought lower motor veh-
icie taxes besides big savings in car
running expenses due to good roads.
The foregoing assertion is based
on a conclusion in recent National
Tax report, says highway bulletin
this week. The experts hold that
where lieu tax is collected on
motor vehicles, only the excess over
that on other personal property is
to be regarded as a special tax for
highways. Minnesota personal prop
arty taxes on cars and trucks aver
aged more than SIT in 1920, ex-
elusive of the state license fee,
while the average since has been
1863 under the new highway plan.
Providing for low auto taxes and
conservative bonding and for fair
distribution of road expenses. the
Minnesota plan further meets all
important principles laid down by
the experts after long and careful
study.
The National Tax body findings
are in close accord with those made
independently by a Highway Trans
port committee on which the Ameri-
can Association of State Highway
Officials was represented by T. H
Mcdonald, chief of the U. s.. Bur.
eau of Public Roads, j. H. Mullen
- L. .~l, -
ment, and other officials of prom
inence, and the American Automo-
bile Chamber of Commerce by 4
D. Chaplin, Pyke Johnson and other
figures in the 5automotive world.
Both groups agreed that the bond
ing plan is better than the pay,as
you-go policy in situations such as
now confronting Minnesota in its
highway program. The National Tan
association report reads as follows
During the initial period of con
struction of an extensive system OF
highways, densely populated anc
rapidly growing states, and states
where the immediate need for the
construction of improved highway.
is urgent, it would be unwise to at
tempt to finance highway construc
ton wholly or even in large part
from current tax revenues. If cur
rent revenues are relied upon under
these circumstances, there will re.
suit either an intolerable tax bur
den on the community or else there
| will be an unreasonable retardatior
of highway construction, entailine
to the community the loss for many
years of the advantage of improved
highway communication. Such {
financial policy would be likely tt
lead, moreover, to piecemeal con
construction, with the result that the
| utility of each mile of improved
road will for many years be re
duced, as compared to the possibil
tiles if, once the system were care
| fully planned, a program of rapic
completion of its general frame
work were embarked upon. State.
and localities however, which have
already made considerable progress.
and passed the peak of new annua
mileage, should move gradually to
ward the pay-as-you-go basis"
| The report states further tina
OUTLAWS on primary or trunk high
ways systems which carry the grea
percentage of traffic should at leas
equal those on secondary or loca
roads. In Minnesota, however
more than SO 100000 raised in an
nual Scounty-town levies for road,
| and bridges is nearly double tn.
net yearly income to date under
the new highway program.