The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-10-25
new GAS TAX
LAW RESULTS
IN TROUBLE
Met hOds of Collection and
Other Feature lnadvisabIe
and UnwOrkahle

Prediction that the state will ex-
pcriencc ..endlcss trouble" in the col
lection Of the two-cent gasoline tax
voted by the people last June is
contained in the biennial report
which Thorstcin H. Thoresen, state
tax commissioner. will submit to the
legislature.
Although he agrees with the idea
Of raising the tax from one to two
cent per gallon. Thoresen scores the
method Of collection and other feat
urcs rs inadvisablc and unavoidable.
Tax Now Is Sales Tax
He SAYS: "The law rs now in Ell
fee, Il !: sales tax whereby the tax
collected when the fuel is sold to
tn, consumer tho old law was a tax
on ~ fuel MS il was shipped into
the s.a.e. tnGtr the old law COM
plc,c check was possible of every ship
mon '.of motor fuel which entered
the cate, while under the new law no
surh check II provided for and the
sta.e has no way Of determining how
much 10 collect for until the dealer
reports his sales. Then again, under
the old motor fuel lave. the tax was n
prior lien upon the property OF the
dealer lien Of any nature IS
rgag ,!ei for in the new law. the only
thing the state has is an open account
with the dealers without any lien or
preference.
"Thc refund feature of tho new law
j. not desirable and will not be of
The benefit thought for it. The re-
fund feature must Of necessity re-
ouirc machinery TO check. the thou
sands of refunds which will come in.
If a satisfactory audit department is
to he established with sufficient men
to cheek and investigate these re-
funds. il will cost as much rs the
state will gain by this extra one cent
rer Gallon. II no check is to be made
the law will soon become imperative.
Administ ration Cost Higher
THE reason for granting refunds
was that farmers and others pay for
gasoline which is not used upon the
road and they should not. therefore.
be required to pay this tax which is
primarily for road purposes. The old
law, however, provided for the pay.
men. Of S200,SO every year into the
general fund Of the state, which said
sum relieved the general property of
the state from that much tax. APP
proAimatcly 20 per cent of the taxes
are paid by rural property. The
farmer, therefore, will have to make
up 20 per cent Of this 100000 taken
out Of the general fund which will
increase the tax upon the rural pOpu-
lation in the form Of general prop-
crty tax Of approximately $4,000
We doubt that there was any more
tax paid. rpr motor fuel, which was
not used upon the highway. than the
amount Of $4,000. Consequently, thu
farmers who were to be the benc
ficiarics under this new law, due t
the refunds permitted. are not thu
bcncficiaries ut all, as the amount
obtained in refunds will be added t
the general property tax and in ad
di;ion the administration Of the new
law will cost many times the cost o
the administration Of the old law.
at would. therefore, seem prefer
able to re-enact the law which wa
in effect prior to the initiated Law
by changing the tax from 1c to &c pc
gallon. All that was intended to b.
accomplished by the new law wOul.
thereby be accomplished under the ad
ministrative machinery of the prio
law. The gasoline tax law which wa
in effect prior To the initiated law wa
cons idcted one Of the best motor fue
tax laws in the country. 1t is certain
that whether the old law is rc-enactc,
or not, certain amendments ccrtainl.
seem necessary to this new law In or
der To make it workable and so tina
it will bring the results desired with
out too much administrative cost"