Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-01-31
The $500 Exemption Law

Careful commentators on legislative proposals
now before the state legislature have pointed out that
the new tax exemption law being seriously considered
may not hold all the benefits which its proponents
hope to exend to heavily burdened taxpayers.
The measure provides that owners of real estate
be exempted to the extent of $500 on homes in which
they reside. 1t extends to occupant-owners of homes
in cities and towns as well as rural districts.
AT the outset, it is pointed out that this would re-
move from sixty to seventy-fiye percent of all the
residents in such counties as our own from the tax
rolls, so far as the property where they live is con-
cerned. Immediately the necessity arises of some
kind of a replacement tax. With this heavy deduction
made from the receipts, rural schools could not pos
sibly continue, and it would be very predetermined if
town schools would be able to remain open.
Those who are supporting the Bill undoubtedly
realize that it is impossible to keep our government go
ing on the one hand and at the same time remove the
most principal source of revenue for its maintenance.
They talk freely of transferring all receipts from state
owned liquor stores TO the schools. With the federal
government insisting that each state bear a larger
share of relief funds for unemployment, much of the
liquor revenue will undoubtedly be appropriated for
this purpose. Then. a sales tax will be proposed.
This would, in the last analysis, be passed back to
the consumer, and with adjoining states free from
such a tax. would send buyers from bordering coun-
ties s~currying to other states to make their purchases.
1t would be impossible to estimate the effect of such
discriminatory legislation on the state as a whole.
Every property owner would probably suffer.
But other ways are pointed out by which the pro-
posed $4,000 exemption Bill would work injustice and
injury. Take the man who owns his little home, either
in town or country, and who, in order to find work
and keep off relief rolls, has accepted a position at
Fort Peck or some similar project. Perhaps to hold
his family together, he has rented a little taxpayer
shack in one of the several mushroom cities. Because
no did NOT hanDan 10 live in his own home he would
not be exempt from regular tax, while his neighbor
across the ~street-much less deserving Of c~onsidera-
tion-would reap its benefits.
The law, as it is constructed, would be especially
beneficial to residents of cities. Here business
executives-many of them enjoying lucrative incomes
and owning their own homes, would be exempt from
paying any tax on those homes. Again owners Of
business places, apartment houses and such, occupying
such places as their residence land many would
hasten to take advantage of such a law would be
relieved from paying tax on that property.
Some way should be worked out to afford relief
to The drouth-stricken farmers in our state so burden
ed with taxes that they have practically become con-
fiscatory. More direct and constructive relief however
could come from some plan which would encourage
make possible the payment of delinquent taxes
the amount of which most every county has sufficient
more to put it on a cash basis.
It seems difficult for many who would seek to low
er tax burdens to get away from the old law of com
pensation. If we are to enjoy the blessings of demo
cracy, if we would have good schools, well equipped
and taught by highly trained instructors, if we contin-
ue to insist on the building of new and improved high
ways, we must have the money to provide these very
things which we continue to demand. If it doesn't
come one way, it must come another. After we have
expenditures to a point where further reduc-
would simply mean lost efficiency which we
would not permit, then our biggest task becomes
not so much one of reducing total tax payments or re-
ceipts, but rather one Of more equitable distribution
and assessments. Towards such an end it is doubtful
the present measure will lend itself.
We Change Slowly