The Wrangell sentinel., 1950-06-23
THROUGH THE SENTINEL PERISCOPE

The Territory lost a round in the tax battle which has been going on since the last Legislature enacted new revenue laws when Federal Judge Harry Pratt this week in the district court at Fairbanks held the one per cent property tax act invalid. It was the first reversal for the Territory in the several court actions brought against tax laws. Judge Pratt in a 22-page opinion ruled the entire act un- constitutional.
 Previously the income tax law was upheld by Judge George Folta in the district court at Juneau and affirmed by the Circuit court The fishing license tax law was upheld as to salmon fishermen and can neries but invalid as to halibut fishermen. The fishtrap tax was upheld as to quadrupling the li- cense tax on traps but the provision nullified as to the fish caught in traps.
 Appeal to the Circuit court is being prepared by the Territory on the property tax case and it is hoped that a decision of the higher court may be obtained before the next Legislature meets in January. It is felt that two court opinions would be helpful to the forth coming Legislature as anticipated, it will draft another property tax law in the event the reversal stands up in the Circuit court
 Judge Pratt in his verdict held the present act violates the Organic Act as to mining claims and also lacks uniformity as to levies inside and outside municipalities. The Or Sanic Act provides for taxation ac- cOrding to the true and full value" of the property. The property tax law does, too, except that on mining claims it provides for a value of $500 on claims up to 20 acres. The court held this discriminatory on grounds that the rate would be $25 an acre up to 20 acres but that if the claim was 20 and a fraction the value would jump to $50 per acre. He held the law lacked uniformity and cited rebates allowed non-delinquent taxpayers in some municipalities and not allowed in others. The Judge fur ther held the law lacked adequate remedy for recovery of taxes paid under protest.
 Financially the Pratt decision means the Territory will get along during the biennium ending next March without an estimated $2,- OO0,000 the property tax was fig ured to produce. Little property tax has been paid pending the court deciaion and that has been held separately and not used await ing the court action. As a result, the Territory probably won't be able to releose much of the five million now frozen in appropriations unless revenues from other source warrant particularly fisheries, liquor and income taxes.
 In special election which brought a total of 1924 voters Juneau this week put on a sales tax of one per cent. It passed 59G to 431, or 57.9 per cent in favor It required 55 per cent for passage The capital city is the fifth towr in the Southeast to adopt the sale' tax, the others being Wrangell Petersburg, Sitka and Ketchikan Skagway recently turned it down
 Chairman Joseph O'Mahoney ex pected to get the Alaska statehood bill out of his Interior and Insula Affairs committee late this weel and on the floor of the Senate
 Gov Gruening, who has beel attending the Governors conferenc in White Sulphur Springs, w Va is due back in the Territory Sunday
 AIR OFFICE PASSENGER LIST
 Left Monday = For Ketchikan Marlyn Buyer, T. c. Webb, A.