The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-06
MANY CHANGES
ARE PROPOSED
IN TAX LAWS
Tax Department to Offer SeN.
eraI for Purpose of Clari
tying and Correcting
HAVE A WIDE RANGE
Represent Considerable In
vcstigation Upon Part OF
state Tax Experts

:, laws, chiefly with Il view OF clarity
II any statutes ana correcting detects
n discovered by Investigation, maze
Il been prepared b. Z. {. Converse
., state tax commissioner; Lyman y.
Ii Baker, deputy and {. j. Lynch, IN
i, come tax Deputy. OF the stat" tax
$ department. Several tax bills haH"
II been r,euarcG and others are IN
y course Of preparation for Senators
~ ana nepteScnIatlNcs. No big changes
N in policy in taxation are TO be pro-
posed by the state commissioner, but
numerous corrective measures are I"
be suggested.
6 One bill, prepared for Senator,
II deals with real estate taxes and pro
Il vides that if the first half of the
real estate taxes are not paid by
K March /, penalties shall apply to the
q full amount of the tax after that
time The rate Of penalty is other
wise left the same as III the W.
II law The bill also deals with tax
Il sales, deeds, assignments, redemp-
tons and lowers the maximum rate
Of interest ON tax certificates from IL
n to 8 percent and the redemption pen
:, Real Estate taxes
The bin also provides that real
r estate taxes and special assessment
taxes shall be advertised and sold
together; the present law provides
p that they must be sold separately
" and 4 separate certificate issued for
:, each The special assessment taxes
are made :. subsequent lien to Genef-
al property taxes, az under the pre-
:, sent laws.
Another bill, initiated by the de-
partment, is brief amendment to
the 1928 income tax law. 1t defines
n. tangible personal property, which IS
not defined IN the 1923 law, although
n it has well understood meaning.
The department had Trouble with
;, some foreign corporations regarding
;, appoltionihent oil income to the state,
=, which the law provides shall be made
on the basis OF tangible property and
:, business. Certain corporations IN
m sisted that working capital such as
l.: bank credits, money and securities
are tangible property and as such
!. must be given weight IN determin-
~ ing North Dakota's share of corpora
n ton income.
Also the 1923 law did not require
a return of information from partner
+ ship reports. The amendment re
pi quires partnership reports be made.
Corporation Amendments
Another change made Is that IN
nj case extensions .. filing income tax
c, returns are granted to corporations
i; or individuals, interest shall be
charged on the tax delinquent at the
time the return is filed, at the rate
:, of percent per annum from the time
r when the return originally was re
If quired to be- filed
N The bill also provides that the
Il same deductions in connection with
r. donations as are now allowed by the
n federal law be provided for income
# taxpayers in North Dakota. The pre-
sent North Dakota law does not al
r., low deductions for donations TO re-
w ligiOus or charitable institutions or
IA purposes. The bill would allow such
4 deductions not exceeding Is percent
@ of the net income reported. The tax
r department has received many COM
i plants because the state law does
e not ALLOW such deductions and the
n federal law does. No recommends
ton is made by the tax department,
the amendment being prepared sole
My to bring the matter to the atten-
,. ton of the legislature.
ST Another bill, prepared on request,
"a provides that real estate taxes sold
,nr,
thyears, and still held by the county,
IL and also subsequent taxes on the
Insane land, may be redeemed up to
bfDecember !, 1925, on payment of in
terest at the rate of percent per
hyear from the date of sale upon the
ciamount for which the land was sold
erplus amounts of all subsequent taxes
held by the county, with interest at
a6 percent per annum from the date
on which subsequent taxes became
due.
Correction of Errors
Another measure, prepared by the
tax department. provides for correc-
Elton of errors in assessment of pro-
i perry by the county auditor and
II for assessment of omitted property
which escaped tdAdllofl, anu lof iS-
Assessment of property which has
ii'been undervalued. The assessments
in such cases would be by the coun-
ty auditor, with review by the board
e.of commissioners. The law also pro
y,hyides for correction of assessments
s5of property destroyed between April
u and October ! of any year, and
s'sprovides for reassessment of any OF
lall classes of property in any dis
5trict on the order of the board OF
Gtcounty commissioners. 1t also pro-
Tsyihes such reassessment must be or
'dered on or before October l any
vear. Tax department officials stat
led that the present laws covering as
asessment of property which has es-
ecaped taxation and reassessment OF
property which has been improperly
gas sessed are rather unsatisfactory
1.-THE procedure is not clear, and the
Elections are badly scattered in the
cOde.
Another bill deals with situs OF
property for the purpose OF taxation
md Is an amendment to section 209'
~ amended by chapter 68 Of the laws
ESEpf 1919. Chapter SO provides for as,
aY&assmett Of personal property at the
.rfnefpal office or place OF business
= - the state of the owner. This sec.
T. ton. according to tax department %.
y 9ficials. il in violation of the consti.
~ an vhich provides that taxable