The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-10-28
TAX Commissioner
SAYS MORATORIUM
WOULD WOUNDN,D,
Claims It Would Paralyze Bust
ness ard Necessitate
Boost in Taxes

Proposed initiated measure provid-
ing for partial moratorium on the
payments Of debts and taxes, il an.
proved at the November election, will
virtually paralyze all governmental
activities in North Dakota" and cur
rent taxes will have to be enormously
increased" liver A. Acker, state tax
commissioner, said in q statement Is
sued Friday.
This years state levy and all county
end local leVieS will be Inadequate to
provide the revenue needed If the
measure carries, the tax commissioner
asserted.
Personal property taxes aggregating
several millions dollars, Acker said,
will be entirely lost should the meas
IRE pass and public credit will be de-
stroyed. resulting in utter business
stagnation and general bankruptcy"
The tax commissioners statement
said in part:
THE proposed initiated law, spon-
sored by the Farmers Union, which
provides for moratorium on the
payment Of debts and taxes, will, il
approved at the November election,
virtually paralyze all governmental
activities in North Dakota.
Already the impending threat of a
moratorium has seriously impaired
the credit Of the state and its local
subdivisions! Several counties and
many taxing districts have been un-
able to sell certificates of indebted
ness issued against uncollected taxes
Many taxing districts as a result have
been compelled to resort to the is
suance of warrants in order to pas
salaries and other governmental ex-
penses. The holders of such warrants
undoubtedly will be compelled to sui.
fer heavy discounts in order to cash
them. if they can cash them at all.
Registered warrants bear interest at
the rate of per cent, which the tax
payer must pay The law requiring
taxing districts to operate on a cash
basis has in large degree been NULL
fled.
Would Increase Taxes
IF the proposed moratorium act Is
approved by the voters current taxes
will have to be enormously increased
in order to enable the state and the
local units to function. Under the
laws Of North Dakota all taxing dis
trictS operate on budgetary basis
and uncollected taxes must be taken
into consideration in the determine
ton of levies.
IF the proposed moratorium law is
approved this years state levy and all
county and local levies will be made
quate to provide the revenue needed
to carry on fundamental government
tai functions. Schools will be unable
to operate and the essential activities
Of government necessary for the pro-
lection of life and property will be
raralyzed until additional taxes can
be levied and collected.
"A moratorium on the payment OF
taxes also will mean a moratorium on
the payment OF special assessments
and on taxes levied for interest or
bonds and sinking fund Requirements.
Deficiencies in special assessment
collections and an interest on bonds
and in sinking fund requirements will
result in widespread default IN the
payment Of public debt. The value o.
state and municipal bonds will be i'm
paired Such bonds now are held BY
hanks and other fiscal agencies.
Public finance will become chaotic.
The credit of the state and its local
governmental units will be destroyed
And the destruction of public credit
will mean the destruction of private
credit, which will result In utter bust
ness stagnation and genera! bank
ruptcy.
Taxes Would Be Lost
"Postponing the payment CT delin,,
quent taxes for period Of three
years will enormously increase cur
rent and future taxes on farm lands
and other real estate. Personal prop
crtv taxes aggregating several million
dollars will be entirely lost. Even
now failure to enforce personal prop.
erty tax collections has the effect OF
increasing the tax burden OF real es-
tate owners But If the proposed
moratorium law is approved large
amount of taxable personal property
will be virtually rendered taX-exempf.
Personal property will be sold or
otherwise disposed of and only the
personal obligation of the person as
sessed will remain. When the prop
erty is gone the collection Of the tax
often becomes unenforcible. The
owners of real estate, however. will
not be able to dodge the ultimate
payment Of personal property taxes.
II they are not paid such taxes Will
ha oy,farod oooinet their land"