The Ely miner., 1926-01-01

CT tndH tildt on Otnef claSSeS OF TAX
able property.
Secretary Holm announced that
1926 registrations will open and
new license plates will be issued be-
ginning Jan. 2. The new plates
carry white letters and figures on
black background.
Automobile taxes will be lower
under new rates effective Jan. /.
The largest number of cars will be
taxed $40, that minimum being re-
dpced from $12. The new rate on
better cars is cut to "a per cent
from 2.75 per cent of factory list
prices and the discount of 10 per
cent year for depreciation is con-
tinued. Trucks are reclassified for
taxation purposes, some rates being
increased and others reduced.
A common estimate is that the re-
duction of So for the majority of
car owners and those on other
models will cost about $1,50O,O00 of
needed road work, reducing high
way income to that extent.
Gasoline Tax Popular.
Approximately $3,50O,OOO of high
way revenue has been produced by
the 2-cent gasoline tax, Hjalmar
Nilsson, state oil inspector, reports
under the new law put into effect
May 1, 1925. Yet a deduction of
$500,000 paid by outside tourists,
left the average for Minnesota own
ed cars about SIS. The majority
paid less than SIS in "nickle and
dime" contributions at filling sta
tions, it is estimated, because the
average on trucks and busses ran
much higher.
The gas tax is to continue un-
changed next year.
Popularity of the gas tax after it's
trial in Minnesota is influencing a
number of car owners to advocate
its adoption as the single method of
raising money for more good roads
The states, following the same
policy, tender revenue to local units,
si.ch as school districts under the
ssme conditions-that the state
money be matched dollar for dollar
and the state regulations be COM
FLIED with. The taxpayer furnishes
the money in all four cases in fed
eral, state and local taxes, and as a
result there is an increased tax bur-
cen on the individual.
''If it is agreed that these are the
primary causes Of high taxes, it is
essential that the situation be rem
edied by the conception and proposal
of effective remedial measures.
"The first and most effective rem
edy is to stop spending. We are
comparatively young state with a
comparatively small population and
with comparatively limited taxable
wealth. AS ambitious as we are
young, Minnesota demands public
Improvements beyond our financial
ability to acquire at this time. In
their acquisition we are placing up
en- our own shoulders a tax burden
that it is difficult to sustain.
'The second possibility is to stop
borrowing. In their effort to acquire
beyond our financial
afford, the people of Minnesota, like
the people of other states, borrow
money, much of it on long-term
bonds, and are pihng up an inter-
est burden so great that before the
bonds are redeemed the payments
on interest frequently exceed the
Elimination of borrow
ing and the issuance of serial, rath-
Ell than long term bonds, when it is
necessary that any bonds be issued,
will reduce our interest charge and,
in addition thereto, cause the pres
cnt generation to pay their own
bills rather than hand them down
to coming generations.
'The third remedy is compulsory
publicity-puhlicity of such a ma
ture that the taxpayer will know in
advance the amount which the pro-
posed Improvement is to cost him
and the amount which the bond
issue will cost him, both in principal
and interest, before he incurs the
liability, rather than afterwards.
With such pablicity the question of
axes, bond issues and tax rates may
be left to the public to decide"