The Daily Alaska empire., 1949-01-18

PROPERTY TAX BILL
 SHAKEN UP TODAY
 BY COM. OF HOUSE

concentrated on tax hills today in an atmosphere of calm after yes terday's defeat of a Republican, sponsored Memorial challenging the special sessions legality.
 The House Ways and Means Committee is overhauling the Gen. eral Property Tax bill and ndi- cations were that the rate of the property tax would be cut from two to one per cent when it is report ed out to the House.
 Chairman Warren Taylor, Fair banks Democrat, made the rate cut reduction proposal at this morn- ing's meeting and met with a gen. erally favorable response.
 Several members agreed with Rep. Stanley McCutcheon, An chorage, Democratic floor leader, that the Legislature should get the basic property tax program start ed at level which will not arouse too much opposition, then can in- crease it in future sessions if nec- esSary.
 John Wiese, CIO Fishermens' Un- ion leader, appealed to the House Ways and Means Committee this morning to exempt fishermens' vessels from the property tax
 Committeeman responded that they were unable to give fishermen any exemption not received by farmers, truckers and others, but suggested that $5,0OO personal property exemption would relieve most small fishermen.
 WieSe argued that fishing boats are ill the same category as a mans tools. He said fishermen all ready pay license and production taxes.
 Wiese assured the committee that we are not trying to evade taxes, but just want to be assured of equity" He said the proposed lower property tax rate as ap- piled to boats would be welcomed by fishermen.
 Taylor predicted the Ways and Means Committee may have the property tax bill whipped into shape for the House to consider tomorrow. He said the committee stood a good chance of completing its overhaul job this afternoon.
 Taylor's proposed amendments would maintain the present two- mill maximum property tax in cit ies which already are taxing to that level
 He also propoSes-and the con- mittee concensus seemed to be near agreement-that personal proper ty exemption of $5,000 be allow ed instead of the $20O included in the bill cs introduced.
 He explained that would give a sizeable. exemption to equipment of fishermen, farmers, truckers and others.
 Taylor said he and other com- mittee members also agreed on re- ducing the valuation of unimproved mining claims to $10O. The would mean one per cent tax on $10O instead of the original bills pro- posal of two per cent on $500 valu- atiOn.
 McCutcheon predicted the prop erty tax bill could not pass r it's original form; that it would arouse too much opposition from the pub- lie. Levies under the bill would be on true" values.
 Several members of the com- mittee suggested lower starting point for the tax so the bugs" could be worked out of it during trial for a biennium or so.
 McCutcheon estimated $80,O00 OOO worth of cannery properties alone would be rich revenue source, even at one per cent tax (equiv- alent to 10 mills.
 Rep, Glen Franklin. Fairbanks Democrat, urged caution with the property tax because 4it could be turned into bludgeon' by a later Legislature that might be so in- clined. He expressed favor. of in- come and business license taxes as the basis for the proposed new tax program.
 Rep. Clarence Heating, Anchor age Democrat and former Seward Mayor, declared people moving into tax-free zones outside of cities, while still expecting city services, are bringing "a dangerous situa- ton" in school and other revenue fields. He said the general prop erty tax is the equitable way to assure their bearing their share.
 Frank Angerman, Fairbanks Democrat, cautioned against low ering the proposed property tax without serious consideration. He suggested it would be easier to start higher and drop down if the revenue were not needed than to drop the levy and then have to raico if he ,,auk Iaoic1,f,,ro