Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1940-02-15
BY Hjalmar Petersen

Two years ago, it was my privi-
lege to address the Minnesota State
Association of County Commissioners
on the subject of Local Government"
Today, in the light of events that
have transpired in Europe during
this two-year interval, we may well
consider ourselves privileged to be
anywhere, before any assemblage.
The fact that you are here again is
reassuring evidence that we still have
it in America. The kind of local
government you have been admin
istering in your respective counties
is a testimonial to your ability and
determination to keep it.
With a sense of thanksgiving for
our liberties, there comes to us the
realization of responsibilities graver
- than any that you and I have ever
faced in any test of public service.
Men and women cannot be expected
to remain true to democracy unless
democracy, in turn, can meet each
days emergencies.
Proper tax assessments and tax
spending in all units of government
are essential to democracy.
Keep Real Estate Taxes Down.
Looking at the state tax situation,
it appears to me that it was an I'M
wise move to lower the gasoline tax
in the state of Minnesota from &c
per gallon to SC per gallon, which law
becomes effective September l, 1910.
I believe you will agree with me in
this contention.
Assuming that we need about the
same amount of money for construc-
ton and maintenance of highways,
and the gas tax collections are cut
one-fourth, it stands to reason that
the needed money must be derived
through other sources. 1t will be
passed on to higher motor vehicle
license fees or general property taxes.
Either method would be unwise.
In the states of Florida, Louisiana
and Tennessee, the state gas tax is &c
per gallon, while in Mississippi, Ala
bama, Georgia and North and South
Carolina, it is &c per gallon. Tourists
from the southern states visiting the
North Star state would not travel
less in Minnesota if the gasoline tax
remained at &c. Tourists will not
help to pay motor vehicle license fees
in Minnesota nor will they pay any
of our general property taxes.
The gasoline tax in neighboring
states averages up with the &c now
being paid in Minnesota, but when
we drop to &c on September 1, we
will be below the Northwest average
Thirty-seven states have &c tax
or higher.
Eleven states and the District of
Columbia have lower tax. The aver
age in the United States is 3.96c, or
to all practical purposes a &c tax.
Help for County Aid Roads.
For more than a quarter of CEN
fury, improvements were being made
in highway building out over the state
through the help of the Dunn one
mill road tax law. Those were the
state-aid roads. But, in recent years,
even greater improvements have been
made through the system of county
aid roads, the money for which is
derived from gas tax.
If the price of gasoline dropped 1c
per gallon when cent is taken off
the state gas tax, and then remained
at that price, it would be somewhat
different matter, but the past does
not indicate that the price of gaso-
line is governed by the tax on that
product Figures over a period OF
years show that the price of gasoline,
regardless of high or low tax, is gov
erned by what the traffic will bear
Twenty years ago, the price of reg
ular gasoline was about SOC per gal
lon, and there was no gas tax at that
time. In 1924, the price was 26c to
28c per gallon with &c state tax
and no federal tax. Gasoline prices
today vary from 18c to 19c per gal
lon, which includes a &c state tax
and a 1c federal tax. All of which
goes to prove that the price of gaso-
line, regardless of state and federal
taxes, is what the public will pay.
Assuming we need the &c gas tax
this reduction of 1c, amounting tt
over $5,OO0,000 annually, must be
made up in some other form of taxa
ton or our roads will suffer.
Let us not have legislation thai
tends toward increase in general
property taxes such as the law tina
decreased the gas tax from &c to &c
Our highway system is far from
completed, as you county commission.
ers well know. More construction i!
needed, and there are Improvement
to be made, as well as maintenance