The people's voice., 1958-12-19

loan societies, etc. These user-ownet
businesses, he contended should bt
brought under the corporation license
tax on net profits.
Neill pointed out that the last legis
lature had increased the corporation
license tax by 6625 per cent, and had
made substantial increases in various
other kinds of license taxes paid by
corporations.
(Neill's implication the present cor
poration license tax law is adequate
was questioned in subsequent ques-
tion and answer period. AT that time
it was brought out that in its final
year the old three per cent tax on net
income of corporations brought in
$786,270 for each one per cent of
the tax. In the first year of the 1857
legislatively-approved increase to five
per cent, each one per cent brought
in only $471, ,538-a drop of about
forty per cent, while the tax rate had
gone up 662s per cent. Equalization
Board member Ed Byrne reaffirmed
this. stating that the added two per
cent increased the total corporation
license tax revenue by $4,000. In
come from this source for taxable
year ending last June 80, fell short
$1.2 million as compared with antici-
pated yield.-EDITOR.)
Neill also protested rural electrics
having lower tax classification than
privately-owned utilities. In addition,
he held out no hope for the corpora
ton license tax yielding more reve-
nue..
Countering NeilPs blast at farmer
co-operatives and the rural electrics,
Leonard Kenfield, president of Mon
tana Farmers Union, pointed out
that farmer co-operatives pay all the
taxes paid by individual proprietor
ships and partnerships and noted that
Farmers Union Central Exchange was
one of the top taxpayers in Yellow
stone county, as an example. Kenfield
also told the audience that only a few
co-ops are exempt from income and
license tax laws-because
they have no net income. Co-ops
refund overcharges to their patrons
(unless the patron owners by maj jority |
vote decide to leave such overpay-
ments in the business for a period of |
5ime.) These overpayment refunds,
he pointed out, find their way into
The cash registers of every conceiv-
able type of private business. A Vel
owstone county survey showed that
more than 80 per cent of such re-
funds went back into the local econ
,my through privately-owned business
Institutions.
AS for the lower tax classification
IF rural electrics, Kenfield said the
rural electrics are doing job pri-
rate utilities wouldn't do"-bringing
power to low population, high cost
lreas; that rural electrics are non
ipeculative, service industries.
Speaking on the subject of prop
,rty taxes, the MFU president said
hat 85 per cent of such taxes go to
upport of the schools, counties and
tiles; that they constitute 60 per
ent of the total tax liability of the
tate.
In 1856 more than STA million was
in property taxes, of which J
80 million went to schools; $19.6 I
lillion to county governments; $11.5 {
} cities; 1925 to the university sys-
I'm, and $8.8 million for miscellan- I
0us governmental operations.
A first step toward property tax I
form, Kenfield pointed out, is COM II
elton of the reclassification pro- n
-am so that a uniform system of I
can be developed.
Expressing opposition to the state =
itself from the property tax e
eld. he said such statewide levies !,
e a deterrent to growing out-of- - -
ate corporate type ownership and =
'eration of the states agricultural :,
ant.
In closing, Kenfield stated that =
the best way to increase the tax
ase is to increase the economy,
nd cited how the tax base of Flat tt
cad county had more than doubled I'll
yer a 10-year period because of Sc