Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-05-02
LEGISLATIVE
SESSION ENDS
Governor Olson VetOeS Om-
nibuS Tax Bill and Gives
Reasons.
A Special Session is Likely
to be Called Later in
Summer.
BY HJALMAR PETERSEN
Lieutenant Governor of Minnesota

BY HJALMAR PETERSEN
Lieutenant Governor of Minnesota
The 49th session of the Minnesota
LEGISLATURE is over after one OF the
maddest last-minute scrambles in the
history of lawmaking in this state.
Two aspects of the situation loom
out above the rest: the vetoing by the
governor of the S21,00O,000 omnibus
tax bill and the consequent posi-
bility that the chief executive Will
call a special session this summer to
take care of problems left unsettled
when the Legislature closed up shop
on April 25.
If such a special session is called.
it is assumed that other important is
sues besides the tax question will be
considered. One of these is the ques-
ton OF enacting legislation to enable
the state to obtain millions OF dollars
from the federal government under
the five billion dollar relief program
for publicly-owned power projects, ru-
raj electrification, and other works.
were killed or permitted to die, in
GLIDING the rural electrification pro-
posal, the power districts bill, and a
housing development plan.
Olson Attacks Bill.
Governor Olson, in his eight-page
message vetoing the omnibus tax bill
sponsored by the leaders of the con-
sentative majority, assailed the plan
as shifting the tax burden from those
with the greatest ability to pay to
those least able to pay. The chief
feature Of the measure was the ) per
cent sales tax, which was expected to
yield in the neighborhood of S12,000,-
600. Governor Olson emphasized that
the sales tax, levied on necessities.
would bear most heavily on the poor.
The governor pointed out further
that many farmers would pay more in
sales taxes than they would receive
in reductions of real estate taxes I'M
der the conservatives program. He
also stressed the fact that 40 per
cent of the farmers of the state are
tenants and that these. while receiv-
ing no benefits through property tax
reduction, would be subjected to the
additional burden of the sales tax.
"Aids Mining Companies
The bill would help certain wealthy
taxpayers, the Governor said, remark
ing that the mining companies stood
to gain a tax reduction of approx
mately S2,300,000. Absentee land
lords" holding large blocks of prop
erty would gain. too, Governor Olson
said. He pointed out that foreign in
surance companies, owning thou
sands of acres of farm land in the
state, would win a reduction in real
estate taxes, while the tenants on
their lands would have to pay more
because of the sales levy.
Independent merchants would suf-
fer under the sales tax. the veto mes
sage asserted. These merchants would
have to add the per cent sales tax
to their prices, while mail order
houses out of the state could sell here
without adding this tax, because the
sales tax cannot be applied to sales in
interstate commerce. Thus much bus
mail order concerns.
Corporate Excess Levy.
Indications that Governor Olson
looks to the enforcement of the cor
porate excess tax, which has been on
the statute books for so years, but
has not been collected. were given in
the veto message.
The (omnibus) bill will save mil
lions for the large corporations which
are now subject to the corporate ex-
cess tax" the message said, because
the bill reduces the corporate excess
tax to mills and applies only to GER
tain public utilities.
1.-The tax commission has on its
books some 200 million dollars as cor
pOrate excess. defined on the basis of
the existing law. which if valued at
the going rate. would yield S6,240,000
per annum. One Minnesota utility
would pay s2.OOO.OOO more per annum
under the existing law. if and when
this law is upheld by the court than
it would pay under the rate proposed
i'm this bill. The same utility will
save. under the terms of this bill.
about s165.00O a year in property
taxes"
A test case on the enforcement of
corporate excess tax is now pending.
The corporate excess tax is levied
on certain intangibles of corporations
above their physical assets, such as
good will, etc. In the case of public
utilities, as the governor pointed out.
the corporate excess consists of the
monopoly right.
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