The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-09
TAX BOARD is
GIVEN VIRTUAL
DICTATORSHIP
Attorney Generals Opinion
and Bonding Lawyers
Agreement, Cause.
NOT LEGISLATIVE INTENT
Court Challenge Likely to
! Protect Interests of
Communities.
NOT LEGISLATIVE INTENT
BY DANIEL M. KIDNEY

Dictatorship power over all local
governmental bond issues has been
conferred upon the state tax board,
and the last vestige of home rule"
has been abolished for the next two
years, 1t was disclosed today.
This position, opposed by the
state tax commissioners themselves,
has been brought about by an in
depreciation of the 1881 budget linn
station law by the attorney-gen-
erals office and Indianapolis bond
attorneys.
Construction people contend that
1t will impede public work at time
when increase in such work has
been urged by President Hoover
and other leaders to aid in solving
the depression and unemployment
problems. They point out that
more construction can be done right
now for the tax dollar than at any
time in recent history.
Each unemployed worker given a
Job will thus be taken from the
"dole" paid now by township trus-
tees, they also point out.
Attorneys in New Stand
Several city bond attorneys con-
ferred with Joseph Hutchinson,
deputy encouragement and author
of the opinion, Wednesday.
The opinion, given to Chairman
James Showalter of the tax board
several weeks ago, had held that
interest and sinking fund items
must be considered as coming I'M
der the budget limitation law.
The bonding attorneys went a
step farther and agreed not to ap-
prove any local governmental bond
issues for their client banks and
bond houses unless it first is ap-
proved by the state tax board.
Up to now the board has had
only appellate power, the proposed
bond issues being taken before
them upon petition of local tax
payers.
4 Now the local taxpayers will have
nothing to do with the matter.
Not Bills Intent
That this was not the intent Of
the legislature was the opinion ex-
pressed today by Phil Zoercher, vet
ertan tax board member, who al
ways has urged that the tax COM
rnissioner's powers be limited to ap-
pealS. 81
THE law was intended to not per-
nit current expenditures of local
governments to exceed during the
next two years the budget Of $780,"
Zoercher explained. by budget it
generally is understood that 1t
doesn't mean the bonded indebted
ness costs, as method of curbing
them has long been provided by the
appellate power of this commission"
{ Zoercher said that Chairman
Showalter and Commissioner Pliny
Wolfard of the board are agreed
with him that if they must hear
all bond issues they do not intend
to burden the local officials and
citizenry by making them come to
IIlQldIldJOl1S, OllO OllAO AAS@A AAbS "~A@
be held in the local communities.
Court Challenge Likely
That this dictatorship, said to
have been created without legisla-
tive intent, may be challenged In
the courts was being considered to-
day by construction interests who
are vitality interested in local road
bond issues. .,
Attempt to cut out local road
bond issues was made by the lndl-
ana Taxpayers Association during
the 1881 session, but failed Harry
Miesse. director of the association,
long has advocated tax board con-
troll of them and now he has 1t, al
though not anticipating such a
drastic Interpretation when the law
was passed.
Charles marlborough, director OF
the legislative reference bureau
who drafted the bill which became
the budget limitation law, is report
ed to have expressed the opinion
that the bond issue business was
not the thing which this particular
bill sought to curb, but only current
Governmental expenditureS.