The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-12-02
ASSERTS SALES TAX
WOULD Be HANDICAP
TO some MERCHANTS
Acker Says Mail Order and Out
side Firms Might Receive
Benefit From Move

Advantages and disadvantages Of a
gross sales tax are discussed by Iver
A. Acker. state tax commissioner, in
recommendation to be made to the
legislature in his biennial report.
If a gross sales tax is considered in
North Dakota, he said, it should re-
place the present general property tax
on stocks Of merchandise.
The present system Of assessing and
taxing stocks of goods and merchan-
disc on the basis of an April LIST in
ventory, he stated, does not operate
fairly.
1.-THE business which has rapid
turnover. which is generally the case
with regard to chain stores" Acker
said. lis favored by this method OF
assessment and taxation. Lumber
dealers, oil companies. and machinery
companies generally have low inven-
tories on April /.
Certain states, notably Mississippi,
impose gross sales tax. Such a tax
would probably be productive of fair
err results. But law OF this nature
should not be enacted until after care
full study and investigation.
May Handicap Merchants
THE danger inherent in such a tax
is that it may place dealers and mer-
chants in North Dakota at a disad-
vantage in meeting the competition OF
mail order houses and outside con-
Germs. Merchants and dealers in bor-
der towns such as Grand Forks, Fargo
and Wahpeton would probably be
handicapped in meeting the competi-
ton of similar concerns in neighbor-
ing cities located in adjoining states.
Assessment Of stocks Of merchandise
on the basis of an average yearly in
ventory instead of on an April l in
ventory would somewhat remedy the
discriminatory and unfair condition
that now exists" the tax commission
err said. He recommends the law
should definitely require every mer-
chant and dealer to file with the as
SCISSOR an inventory on a form pre-
scribed by the tax commissioner.
Assessment Of property in North
Dakota. now subject to local assess
ment. should be centralized under the
direction and control of a county as
SCISSOR who in turn should function
under the direction of the tax COM
missioner, Acker recommends.
Wants Assessors Appointed
The tax commissioner said that if
the legislature is unwilling to enact a
county assessor law, legislation should
be enacted abolishing township asses
sors and providing for appointment by
the board of county commissioners Of
an assessor for the rural portion Of
each county commissioners district
with provision for the appointment of
such deputy assessors as might be re-
quired during the assessment period.
The board of county commissioners,
Acker believes, should be given the
power to equalize individual assess
ments, while acting as board of
equalization.
THE tax refund and abatement
privilege should be further restricted"
he said. This privilege is subject to
serious abuses. 1t upsets local bud
gets and gives opportunity for special
consideration and favoritism. Taxes
voluntarily paid should not be subject
to refund unless based on an illegal
assessment.
Need Better Equalization
The state board of equalization
should have the authority to equalize
all assessments each year. Real estate
is assessed only in odd-numbered
years and the assessments of such
property can be equalized by the state
board only in the year of assessment.
Public utility property. including
railroad property, and personal prop
erty are assessed and equalized each
year. The state board of equalization
is powerless to prevent an unfair
shifting of the tax burden from utili-
ty property and personal property to
real estate in odd-numbered years.
There is no necessity for the assess
ment of real estate oftener than each
two years but the state board should
have authority to equalize all assess
ments each year"
County auditors were said by the
tax commissioner to have difficulty
IN apportioning the tax of so cents
for each telephone instrument used
by cooperative or mutual telephone
company. He suggested that either
the SO cents should be apportioned to
the county in which the instrument
is located or a definite valuation
should be placed on each instrument.
The aggregate of this tax amounts to
less than $1,000 for the entire state
Il L