The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-05-27
EQUALIZATION
OF TAXES Is
AIM IN STATE
Bigger Problem Than ReduC.
ton of Taxes, ThOreSen
Declares

The equalization of taxes, more
than the reduction of taxes, is the
big problem in this state as we'll as
other states. according to T. II. II,
Thoresen, state tax commissioner.
"The work of the Tax Commission
er is a mighty big job said Mr..
Thoresen. II have discovered that
there is an unlimited field of work.
It deals with every phase of the gov
eminent.
"The tax problem is the one all i'm
portant problem not only to the peo-
pie of this state but to the whole ma
ton. Our system of taxation in
North Dakota places the greater por-
ton of taxes upon real and personal
property. That is not bad system
provided all the citizens, who receive
the benefits and the protection OF
government. had property which was
subject to Identification and loca-
ton. To certain extent, however
we find that about the only property
which may be so located for taxation
is the real estate and the personal
property upon the farms and the To-
cal business people.
"That, however, is not all the pro-
perty in the state. We find that
there are, others who enjoy the same
benefits of our government as those
who till the soil or who conduct the
local business places. We have cor
porations, both domestic and for
eign. The valuation of their pro-
perty is not always so easy to deter
mine as that of the farmer or the
local merchant.
LET US take for example the rail
road corporations. How are we 60
ing to place a correct value upon
their property? They operate through
several states. We have the road
bed and the rails here all the time,
but that would not be of much value
if il was not for the trains that move
over them. These are here today
end in another state tomorrow. SO
in order to get as near to the cor
rect valuation of the corporation
property in this state we try to find
the valuation of the whole system
and pro rate to this state the amount
which the mileage of the road in
of the whole system.
"That is fair enough. But how to
find the correct valuation of the
~-hole system is another question.
This is a very technical and intricate
problem and could not give you
all the details now. But we use a
combination of several systems.
Zone of these is to take the earn
ings. that the roads report, and CAPT.
talize it. That is, the roads report
that they have earned certain
amount Of money during the year
as net profit. This is then taken and
figured at say five per cent earnings
of the total value of the corporation,
and thus we find the capitalization
of the corporation. That is only one
system used.
This system, as you will note,
taxes the corporation upon its earn
ing power. II it earns a good profit
it pays larger tax. If it earns lit
tie or no profit it pays small tax
That is fair.
But why give you this one il
lustration is to raise this one qucs-
ton: How much taxes would the
farmers or local business people pay
if they were taxed according to their
earnings? The farmers and the bus
mess people are not taxed upon their
earning power but upon an arbi
tlary value placed upon their pro-
perty. 1t has the same valuation
whether the farmer loses or earns
money. 1t is my opinion that it is
these several inequalities which has
made taxes so unpopular amongst all
the people.
Equalization of taxes is the ONT
big problem in North Dakota. ant
that is the one big task which have
assigned to myself as tax commits
sioner. shall try to work out +;
solution whereby each citizen in thu
state will pay taxes according to tn
earning ability of his business O.
his farm. believe that every citizer
of our state will agree that that il
the fairest that can be hoped for.
1T is a big undertaking, but
am going to approach it with all thu
earnestness and determination which
have, knowing that for every for