The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-07-18
new TAX LAW
CUTS RATE ON
STATE BANKS
Only Small Amount of Stock.
Capital and Reserve Are
Now Taxable

Only %Z,So0,O4I OF q total amount
Of North Dakota banks capital
stock, surplus and undivided profits
Of 81, 768, 473.95 will be subject to
tax rate this year, according to
an announcement made today by T.
II. Ihoresen, state tax commissioner.
The tax commissioners office re-
Gently completed = certification Of all
North Dakota banks to determine
the taxable amount for this year.
In 1927 the 100 per cent assess
ment for bank stock in this state. as
certified by the tax department, was
$7,2l6,00i," Thoresen said. THAT
was before house bill No. 80. passed
by the 1927 session Of the legisla-
ture. exemptin9 surplus of banks
from taxation, became effective.
This year the tax commissioners Of
flee finds that the 100 per cent
valuation thereof for all counties
will amount to 1892. 1852, and a
taxable value of $2,936,541. The
total amount Of capital stock. sur
plus and undivided profits reported
by the banks of the state. as of
April /, 1928. is $17,768,473.95, of
which only $2.936,54l will be subject
to . tax rate for taxation purposes,
after allowing deductions for other
taxable property and the exemp-
tions.
Effect Evident
EFFECT Of the bill is just begin
ming to make itself apparent. The
law, passed at the instance Of the
~A>tA ha~Laveb assna:ok:o~ <o1L 80
feet July l, 1927, but this is the
first year it is applicable to the as
sessment Of bank stock.
"The law exempts from taxation
the surplus of any banking institu-
ton in the state to tho extent of the
amount Of capital stock. The full
effect Of the law will not be felt this
YEAR, due to the fact that many Of
the banks have not been in a position
to claim exemption Of the full
amount. Of surplus to which they
ere entitled.
"ln Burleigh county the total
capital stock, surplus and undivided
profits Of the banks is $466, 968.55.
Upon this they will pay a capital
stock tax upon q valuation Of
$1O3,048.
I'm Cass county, with capital stock,
surplus and undivided profits of
e2,223, 55l.81, the banking institu-
tionS will pay tax on their shares
Of stock, valued at $5O4, 81. In
Grand Forks county, with a total
valuation Of $l.oSl, 7S4.3s, they will
pay taxes on the shares Of stock
valued 1t $97.67o.
I'm Stutsman county. with capital
stock, surplus and undivided profits
amounting to SCAT, 7S4.95, the banks
will pay 4 capital stock tax on the
valuation Of $121,293. In Stark
county the banks have a capital
stock, surplus and undivided profits
Of 1914. 666.91, upon which they will
pay . capital stock tax upon the
valuation Of $123,S39.
I'm Ward county, with capital
stock, surplus and undivided profits
reported 40 $776,481.70. the banks
will pay q tax on the capital stock
valuation Of $l32,335.
Exemptions Large
I'm some counties the capital
stock, % reported after deductions
and exemptions have been taken, has
no taxable valuation. The total ex-
emptions granted to the banks this
year, due to the new w. amounts
to $4.496,978. Figuring the average
tax rate in the cities and villages at
80 mills, the amount of taxes which
the banking institutions g he state
have been relieved Of for 1928 will
amount Of $224,000.
"lnasmueh as the total amount of
taxes to be levied is q fixed and as
certained amount. this simply means
that the $224,000 must be carried
BY the other I xpayers Of the state.
The argument used in the passage
Of this law was that it would per-
NIT the banks to become better and
more secure financial institutions.
This it undoubtedly will do. but
Of the expense Of the 9th r taxpay-
erS Of the state. For every special
privilege that is granted to any class
o& business, someone else must make
up that deficiency. and it seems
that it is rather Z poor economic
policy to take q burden from one
class and lace it upon another class
which il even j.. worse condition than
the class benefited"