The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-02-17
Bill Is Made Special Order of
Business For This
Afternoon
TAX DEBATE CAUSE
Many Opposed to Increasing
One-Cent Tax Per Acre
To Two Cents

state hail insurance law at length
yesterday afternoon without decisive
result, and finally made House Bill
No. &c special order of business
for 3 o'clock this afternoon.
The question of cleavage, the
amount Of the flat acreage tax to be
spread against all tillable lands, de-
vision and amount of surplus to be
built up for the department.. The
present flat tax is one cent, the
majority of the insurance committee
favored increasing this to two cents
and the minority favored retention
OF the one cent tax.
The committee had not divided on
the coming scheme provided in the
bill, and although it provides rad
ical change in the method Of con-
Quoting the state hail insurance de-
partment, no objections were raised
on the floor to the zoning scheme.
Pleas were made for two cent flat
acreage tax on the ground that it
was necessary to have a surplus built
up quickly so that the hail insurance
department would not have to bor-
row money to pay hail losses, that
it would affect absentee landlords
and aid ultimately in paying indem-
nifty.
Oppose Flat Tax
Opponents Of increasing the flat
acreage tax to two cents per acre
asserted that an unnecessary in
crease of $260,OOO per year in taxes
would be caused.
Rep. Traynor, Ramsey county,
stating this position, said the sur
plus of the hail insurance depart
ment is now $3,50O,0OO. 1t is pro-
posed in House Bill No. sc, he said,
to take 100000 to pay the deficit
existing in 1928. With this deduc-
ton, the surplus yet would rise
again by next December through in
terest and penalties on taxes, etc.
to $3,125 900, he said.
"The situation is this" he said,
"By next December the surplus
would be $3,l25,000. The average
hail loss for the last six years is
$3,300,000 per year. Therefore, the
surplus would lack but $l75,O0O next
December in meeting the average
hail loss, and this amount of money
could be easily borrowed, and q
$363,O00 tax avoided. By the next
year the hail insurance surplus
would be more than sufficient to
meet the average loss.
ut seems prepOsterOus to me-" he
said. "to build up surplus to a
point where it will meet the aver
age losses, and then 60 on levying
taxes for it,"
Tries Harmony
Representative George Morton at
tempted to bring about an agreement
on the proposition.
eve have two situations here" he
said. "Many in the western part of
the state feel that much land owned
by spectators should pay part of
the cost by the flat tax, while thou
sands of farmers in the eastern part
of the state owning their own farms
do not like to be taxed for the state
] hail insurance department when they
y do not insure in it.
II would like to see these forces
get together. believe this is
fair-minded house and we can do it.
came here to cut taxes, and have
been trying to do so. I believe that
by leaving the flat acreage tax at one
cent an acre we can build up the
hail insurance surplus and yet save
taxes, and that in two years when
we come back we can get the people
on both sides together and we can
frame law that is satisfactory"
The majority, of the insurance
committee favored the two cent tax
until the hail insurance surplus is
$5,000,000 and then would provide
that the two cent tax would help
meet indemnity payments. The min
ority was for one-cent tax until
the surplus fund reaches $4,000, 900.
There also was no debate on using
100000 of the surplus to psy the
1923 deficit.
zoning Scheme
The coming scheme provided in the
bill would divide the state into four
districts. A county each year would
fall in one of the four districts,
based on the amount of losses for
chat year. The rate would be heav-
lest in the districts and counties
with the heaviest losses. The first
zone would be composed of counties
showing not more than percent
loss; second zone, 3 to 5 percent;
<third zone, 5 to percent; fourth
zone, over percent. A limit would
be provided Of 70 cents per acre for
$500 insurance.
It was explained by Chairman
Hoople Of the insurance committee
that in 1923, the big. hail loss year,
the rate for the first zone would have
been 43 cents an acre, 81 for the
second, 60 for the third and 6S for
the fourth. The statutory maximum
insurance for 500 an acre now is
so cents.
The House, in committee Of the
whole, voted So to 81 to reject the
report of the standing committee, SO
to So to reject the report OF the ma
jority, and then made the matter q
special order Of business for Tues
day.