The producers news., 1932-12-16
SHERIDAN COUNTY
TAX TALK
(By EDGAR 1. SYVERUD,
Sec.-Treas. Sheridan CCNnty
Taxpayers Assn.

The meeting last week at the
Plentywood high school attended by
educators, administrators, the school
trW-tees and others interested was
one apparently not in ended for tax
payers or their repro SentatiNeS SCri'y
to say. But, several attended. altho
with no idea of intrusion. How
ever some of 1.-The subjects dis
cussed and actions talen may well
form the basis for this tax talk in
aSI0uch as 4 relates to our yeXing
problem Of taxation.
The leading topic for discussion
was the financing of our school war
rants which are now practically un-
salable. A proposal is being made
to have part 0f the state Permanent
schoO' fund invested in or used as
.hOrt terms for this financing. as
would meet with the requirements
IF that fund as to safety and hqui-
datfon. M. p. Moe, State High
School Supervisor. was in charge of
the meeting and outlined the situa-
tion as 1t now exists and is sug-
resting this together with ether
legislative proposals to a series of
twelve meetings thruout the state.
this being the fifth.
In the discussions the acute, if
not desperate situation in which our
out. Mr.. Christianson, who has
been handling a considerable num-
ber of county as well as school war
rants told OF his experience to the
effect that quite a number or the
school warrants are cominp bach on
him. In a number of cases il ap-
pears that school warrants are not
cashable on any terms. at presenL.
Mr. Moe. in his opening talk point
OrIf 81
mlnrsh'ng or weakening basis on
which these warrants are drown. As
the writer interpreted his point, the
oasis few years ago stoOd at 100
now IT is reduced to 81. That evil
IDENTIFY means that there is not as
much value back of these Warr~an.r-
as there used to be- We, here in
sheridan county aerecially. con fully
appreciate that. when we tale mo
consideration our reduced valuation
or over S3,000,000 in the past three
years. and more to comet and fur
ther 1act that our net indebtedness
as OF April 20 was increased to 1857.
$50; and also that Approximately
Two thirds of our taxes last wear.
500. 600, went DELINQUENT i'm addi :
tion to previous years. another
staggering amount.
We can readily see where the east
ern interests and others. if tbev
have investigated the matter. are
bit 'scaleY" if not outright scareo
or our financial structure It seems
there Is no wonder that our war
RANTS as Well rs our bonds are not
50 .able. Our security is badly I'M
paired, as the banker would politely
say. No wonder that our ealar.ie5
people and others have to take a
big discount on their warrants. if al
all salable.
we do
In addition to cutting expenses a
great deal more than we have We
must adopt supplementary or re-
placement taxes. It appears that
here we have a very good aTeur,1o,,t o.,,,t
II not most compelling motive for
some radical if not drastic reVisior,s
IN our taxation system. We are now
down on our knees, if not flat on
our backs. Something must be done
As suggested at the meeting, that
warrants might be financed out OF
the state fund-if that could be
legahzed. That part of it. legaliz-
ing, seemed to be a foregone con-
clusion. But would that r1ai-e our
warrants any better? Would there
De more security. and could they
comply with the state requirements >
There IS where some rub will co,-,c
in.
In considering the security of ou,.
warrants we must consider the tax
income, where, when. and how-and
aplllty to pay. The latter is tho
most important. the ability to nav
Nnen farm lands and other proper
~ on which the present system is
Dased, as ct present has no or verv
little value and no earning power
! theh' other means must be resorted
. to. This is imperative.
This was one reason why the
writer suggested that some provis-
ion for a replacement tax be incor-
porated in the resolution which vyss
adopted favoring state financing of
school warrants. It would add great
ef strength to our ability to nav
taxes, make for better security for
our school as well as county war
rants, and also act as a sort of self
liquidating provision. This self liq-
uldating provision is one that seems
10 be pretty well stressed if not in
sisted upon by the Reconstruction
Finance Corporation in its refinanc-
ing EFFORTS, Why not apply this
principle to our own tax or war
rant financing, to a certain extent
II would serve as additional security
IL not the whole security back Of
our warrants in many cases.
II was very encouraging TO note
the tactful broadminded way IN
which Mr.. Moe handled this sug-
gestion and the motion which roI-
lowed to go on record as fayoring a
replacement tax such AIS income,
nydroelectric, natural gas, and lux
ury taxes, and which was unani-
mously carried.
Mr.. Moe also called attention tn
the vast amount of intangible nron.
efty which was now escaping taxa
tlon. Here is another source which
IS amply able and should carry its
fair share of the tax burden. As
SCISSORS should be given more power
to deal with this class.
Follow-up work should now he
carried on in order that these ideas
VIII oe eIfectively carried out and