Western news and the Libby times., 1933-01-05
REPORTS ON MONTANA TAX
STUDY.

The Montana taxation commission,
appointed by the 22nd assembly to
study the matter of state indebtedness
and taxation, submitted its report at
the opening session of the legislature
Monday. II describes the states indebt-
edness as the most serious problem
confronting the legislature.
Not including special improvement
district assessments, the total tax bill
of the state, counties, cities, towns and
school districts for 1882 was $24, ,075,-s
SIS.
The report discloses that the cost of
purely state governmental functions is
not what is causing excessive taxation
in Montana The commission finds that
3.12 cents of each of these tax dollars
goes to the state general fund, 3.89
cents to the Greater university, 1852
cents to the counties, 43.17 cents to
maintenance of the public schools and
111 cents to cities and towns.
Keeping these figures in mind =
says the report, YOU could close the
capitol, discharge all the district judges,
cut the pay OF all county attorneys by
one-half, discharge all the prisoners in
the states prison. release the inmates
of the insane asylum, the school for the
deaf ard blind, patients at the tuber-
culosis sanitarium, girls and boys In the
vocational and industrial schools. close
the orphans horne, dispense with the
board Of health, the livestock commits
sion and sanitary board, and by SO do
inc reduce the amount of ad valorem
taxes paid by any taxpayer who now
pass 500 in taxes by the sum Of $312
The report also says that very little
decrease in taxation could be effected
by consolidation OF boards and COM
missions. 1t finds very little duplica-
tion of work in this respect.
Although believing that there is still
possibility Of further decreasing costs
] of government in county. city and
school district management, the COM
mission compliments the officials OF
these units for an expense reduction
of $1,750000.
The report says the chief cause for
d the $1,000 900 overdraft in the general
gsfnnd was due to the failure of the leg
%isiature to provide sufficient revenue
for the Great university The income
provided for the Greater university tor
the 10-year period from 1921 to 1881
was practically 100000 short of re-
quirements.
The report states that more income
must be provided but urges that pre-
caution be taken SO that additional in
come will not be souandered in new
expenditures but rather to retire the
states present Indebtedness
Daring recent years there is grow
ing conviction among tax students that
the general property tax should be
practically abolished and a personal and
corporate income tax substituted. The
commission is of the same opinion and
advocates tax on incomes. 1t says.
1.-THE general property tax cannot be
successfully administered under con-
ditions such as exist in the United
States, particularly with reference to
reaching intangible property" Such a
tax now exists in 20 states We are
the only great nation on earth that has
not long since abandoned the general
property tax" the report says.
The report calls attention to a rap
idly decreasing revenue from taxation
in recent years in Montana and recon-
mends tax on cigarettes which, it
says, would yield 100000 annually.
The commission is of the opinion
that individuals and industries receiv-
ing special services should pay for
them rather than the general taxpayer.
The commission declares the industrial
accident board should rearrange its
schedule OF fees so that it can be en-
tirely self-sustaining and that the live
stock sanitary board livestock COM
mission and apiary division of the
state department of agriculture should
do likewise.
The final recommendation is that a
method Of state aid for schools should
be evolved and the machinery set up
for distribution of such aid in a man
ner that would permit of a maximum
equalization Of educational opportunity