The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-05-31
HAIL INSURANCE ASSETS NEARING POINT
WHERE One, CENT TAX MAY BE DROPPED
Total Approximately $685..
600 or Within $4,000 of
S4,OOO,OOO Balance Author.
lied BY Law. Audit Report
Of q. Il. Lund Reveals

Assets Of the state hail insurance
department totaled $3,9S7. 99S.27 on
March 81, or within $l2,OOl.73 Of the
81 ,OOO, 900 balance authorized by law,
according to the audit report Of o..
b. Lund, examiner for the state
board Of auditors.
Uncertainty as to the amount
which will be needed to carry out
the provisions Of the new law per-
hitting the hail department to make
refunds on hail tax certificates,
makes it impossible to saJ when the
surplus will reach $4.O0O,O0O and
make it possible to drop the one
cent flat tax on agricultural land,
Lund indicated.
: Another consideration is the in
come to the surplus fund exclusive
Of the flat tax which has averaged
$384,G a year. The average an
nual accretion to the surplus is list
cd as follows: Interest on depsoits
in the Bank Of North Dakota $35,350;
penalty and interest on delinquent
taxes $15O,4S6; hail indemnity tax
levy and miscellaneous items $685.
$40.
Assets Listed
Lunds balance sheet lists the as
sets Of the department at $4,3l9,-
296.35 Of which $2,372,229.l4 is cash
on hand: $l,660,030.6s represents un-
collected taxes due from counties;
| $214,733.O4 is unpaid flat tax; 3d.
7O3.0S is furniture and fixtures; $751;
14O.91 is accrued penalty and inter-
est due on Delinquent taxes and
Sl1.459.5O is accrued interest on GER
tificates Of deposit.
In addition to the surplus fund Of
| So 9S7 ,998.27, liabilities of the de-
partment are listed as follows: Re-
serves for neglected indemnity and
flat taxes $500, 842.83; refunds and
attachments allowed but not credited
! $18,509.62; accrued interest on out
standing hail warrants $301.49;: de-
probation $4,583.96; unsettled pend
| ing hail losses (estimatedD $4,000;
unpaid fee to state general fund
| SO 1000; hail fund interest reserved
for refund of hail tax purchasers
as per the law in 1927, $lo,O6O.l8.
That the fund has grown rapidly
| is shown by Lund's statement that
the addition to the surplus during
the year ending March 81 totalcd
$576, G53.96.
Chances For Eliminating Tax
In a discussion of the possibility
of eliminating the flat tax this year,
contained in his letter of transmit
, tai, Lund said:
"Senate bill No. 1875 of the TWEEN
tieth Legislative Assembly which
becomes effective July !, 1927, pro-
vides for refund of hail indemnity
taxes to holders Of tax sale certif
icates on lands that were not liable
for such tax. This is contingent
liability of the Hail Insurance fund.-.
! which as we understand the new law,
must be paid from the hail funds
on hand exclusive of that portion Of
the surplus derived from the flat
hail tax levy.
"At this time we have no available
information on hand to base an esti-
mate of the amount that will be re-
quired to take up these tax certif-
icates. This liability must be con-
sidered before determining when
the permanent surplus has reached
the statutory amount of 100000
and the flat tax levy is discontinued.
"The hail tax lcvies are not certi-
fled to the County Auditors by the
Hail Insurance Department until late
in October of each year and before
that time large percentage of the
claims for refunds to tax certificate
holders should be presented to the
Department for payment This will
give information on which "A fair es-
innate can be based on the amount
of hail insurance funds required for
|, the payment Of the outstanding cer-
tificates coming under the act.
Surplus Fund Inc0me High
"Thc average annual income to the
Surplus Fund exclusive of flat tax
for the past three years, after the
passage Of the act providing that the
penalty and interest accrued to the
Surplus Fund, has been 1884 ,646.00
per annum.
"This income for the year 1927
should also be considered at time of
determining the necessity of levying
the flat tax for another year.
1.-THE unpaid taxes due from coun
ties are set up in our statements as
they appear of record on the Hail
Department books. We have made no
with the counties. To reconcile the
tax accounts it will be necessary to
20 to the county records. A check
has been made of the tax between a
few counties and the department rec
ords by. hail department employees
and from our observations Of their
findings it appears that in many
cases the amount due from the coun-
ties are understated on the Hail De-
partment records.
Reserve Set Up
"A reserve has been set up in our
statements of one per cent Of the
original tax levy for the estimated
uncollectible taxes. Until settle
ment is made with the counties it
can not be definitely determined
what part, if any, Of the original total
tax charge will not come into the
state Hail Fund but in our opinion
the reserve set up by US appears suf-
ficient to cover all losses"
TOWN HAS FREE BUS
Chardoh, Ohio.-When i hearing
on / bus company Franchise was held
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