Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-08-29

spects the net income for license tax pur-
poses is found upon the same basis as in
computing the taxable net income for the fed
eral income tax return.
S. The 2 percent production license tax
on oil production is similar to the gross
production tax assessed against coal mines
and metal mines and generally known as the
gross production tax 1t is assessed upon the
gross production; and these statements also
afford q basis upon which the state board Of
equalization audits the license tax and net
proceeds tax returns Of oil companies.
6. There Is a state tax on distributors Of
natural gas. This Is an ATTEMPT to assess
tax upon this industry similar TO the per-
cent oil producers license tax and the coal
and metal mines Gross production tax.
2. A tax OF las cents per barrel federal
oil producers license tax applies to all oil
wells producing more than barrels per day,
and exemption is granted on these wells by
making a sworn statement fully identifying
conservation tax is just another tax so far
the operator is concerned; but, neverthe-
less, it is very important 20 our state and its
resources. The las cent per barrel imposed
upon the refiner Of crude petroleum Is a
further tax on the petroleum industry; and
like all Of the other taxes. 1t Is ultimately
passed on to the consumer so far as possible.
This is true OF all taxes; and like the sales
mans ''overcoat" In his expense account. It
will probably get by SO long the public does
not recognize It as such. When the ultimate
Consumer Commences to realize the immense
tax burden that is being passed on to him,
1t may be very difficult for the politician to
explain. This, probably more than any other
reason, accounts for the fact that we do not
have q general sales tax-it hits too many
voters in the region Of the pocketbook.
8. The capital stock tax is correlated with /
the excess profits tax In the federal category |
of taxes. Several elections to declare new
capital stock tax values have been given to /
corporations, and the value that may be de- /
clared. or that has been declared, has no 1
hearing the actual value Of /
the capital stock and surplus or net worth OF
the corporation. In fact, It has no Significance,
SO far as generally believed, or bearing upon
any other taxes than the excess profits tax
and the amount OF the capital stock tax,
Itself The amount OF tax is s1.00 on each fun
81, 000.0 90 Of value. Under all OF these recent
laws the returns have been due for the gov
fiscal year ended June 30th on
value declared as theoretically supposed to be
for the corporations fiscal year closed i'm
before June 30th. This means that
The value declared should be that Of De-
,ember 31st for any corporations closing their
books as Of that date and for those closing
10th, such as the preceding October or Mo-
gember or January, March. etc. the values
o be declared would be those as at the close
i whichever Of those months or others mark
he end of the corporate year.
8. Like the capital stock tax, the excess
profits tax Of war days was re-enacted in
different form. The 1885 act, as amended by
he Revenue Act of 1885, imposes an excess
yrofits tax Of 6 percent OF the taxable net
income IN excess of 10 percent and not in
xcess OF is percent Of the adjusted declared
alue Of the capital stock and ~ percent on
II the taxable net income In excess of is
lercent Of the adjusted declared value of the
apital stock and II percent on all the tax
BILE net income in excess Of is percent OF
he adjusted declared value OF the capital
took. BY ADJUSTED declared value is meant
he declared value mentioned in connection
vtih the capital stock tax above described.
0 which has been added the net income Of
he succeeding year and any new investments
4 capital, less dividends declared, along with
Their minor adjustments provided by the law
nd regulations somewhat intricate to ex-
Gain except upon a hypothetical basis After
he year OF the first declaration for capital
took tax. the adjusted declared value Is
be one used for excess profits tax purposes
TO- The Revenue Act of 1885 imposed
raduated set Of rates on corporate incomes
'hese rates begin at percent on the first
Z, 000.00; II percent on the next SIS, 000. 90;
3 percent ON the next $4,000 90; and Is per-
ent on all net income over S40, 000.00 No ex-
mption is allowed, and losses on sales OF
apital assets are restricted 70 100000. In
ONE taxes paid are not deductible In COM
uting the taxable net income. The excess
rofits taxes imposed by Section 100 Of the
eveneu Act OF 1885 are deductible; but ex-
ess profits taxes imposed under the Revenue
ct OF 1896 are not deductible. rs percent Of
ividends received BY corporations are taxable
the regular rates Of income, excess profits
nd surtax. IN ail other respects the income
TX on corporations Is similar to that Of for
Ter years. Some tax authorities regard the
lcome tax, the capital stock tax and the
zcess profits tax as the proper basis for the
lxntion OF corporations. while others main
lin we should have the sales tax. The tax
aver Is not so much interested In the several
leories OF taxation he is in the amount
tax
An Of US are familiar with the fact that
addition to all the other taxes mentioned.
Q have the stamp taxes on orlginai and
ansferred stock certificates; the cent per
.llon state and 1 cent per gallon federal
x on gasoline sold to customers for use IN
ansportation on the public roads; and
ere are taxes and taxes and fees occupa-
small and otherwise that affect directly or
directly many corporations. so that 70 cover
EN- All would DO 3 monumental work ON
xatfon. Encush has been said 20 show up
q tax situation affecting Montana corpora
IA Ia tire year xB9G.