The Nonpartisan Leader Newspaper, February 3, 1916, Page 3

-~ b - Yagp THE NONPARTISAN LEADER STATE BOARD FINALLY AGREES TO RECTIFY UNFAIR TAX PLAN THRER Leader Wins Its Fight to Knock Out Lump Assessment Scheme Which Discriminated Against Farmers By Staff Correspondent of the Leader Bismarck, Jan. 27.—The state tax commission, the state board of equal- ization and, auditors of the various counties of North Dakota in conven- tion here today agreed on the elimin- ation of the Jump plan of assessment of personal property of stores, busi- nesses and corporations, which plan had been adopted in the new personal property schedule drawn. up by State Auditor Carl O. Jorgenson and approved by the state board of equalization. This rectifies one of the chief in- justices in the schedule and is a vie- tory for the county auditors, state taxing officials and others who flood- ed the state capitol with complaints following a series of articles in the Nonpartisan Leader reporting the ef- fect 'of the new schedule and showing how it would increase greatly the taxes of the farmers and city house- holders, while businesses of all kinds would be taxed lower. Assures Fairer Plan The convention placed the entire matter of interpretating the ' new schedule in the hands of the state tax commission, with eliminate the lump assessments by making special rules for the use of auditors and assessors of the state. The tax commission from the start ogposed the schedule as adopted by the state board of equalization, prin- cipally objecting to the lump assess- ments for every kind of preperty holder except farmers and city house- holders, who would be required to submit to a much more rigid examin- ation of the personal property hold- ings than other taxpayers, thus in- creasing their taxes. The fact ‘that the new schedule thas been placed in the hands of the tax commission for interpretation and administration instead of the board of equalization assures that many injusitces of the taxing plan as first drawn will be obviated so far as possible. The county auditors and state officials found that over 30 counties had already ordered as- sessment books and field slips incor- porating the new schedule, and to order a change in the schedule itself would mean thousands of dollars of added expense in these counties. The plan was adopted, therefore, of not changing classifications of the sched- ule but of allowing the tax commis- sion to issue rules to county auditors and assessors ' so interpetating the ‘various classifications that lump as- sessments and other injustices and conflicts in the schedule will be avoided. Explains New Schedule “This is the hest the convention could do,” said Chairman Frank E Packard of the tax commission. “It was not ‘practicl to change the sched- ule itself, but the rules we shall adopt for taxing officials = 'in the county will help to make the sched- ule more just and easier of adminns- tration. Under the action of the convention we will instruct assessors to drop the lump assessments of garages, stores, livery barns and the other 36 or more businesses allowed in the schedule to be lumped. -These 36 businesses must, under the instruc- tions to be sent out, classify all their property in all the classifications which apply to farmers and city householders, so far as their property can be so classified, and the remain- der will be put in the classification originally intended for the lump as- sessment. X “For instance, the schedule origin- ally provided that an auto- garage could give a lump valuation on all its personal property, including .of- fice furniture, equipment of all kinds autos, etc., while other owners of autos and furniture, like farmers, would have to list them separately. OQur instructions to assessors will be _to ignore the lump assessment and proceed to list the autos and furni- * ture of the garage as farmer and city householders have to list theirs, and’.' to place in the blank originally intended for the lump assessment all other property. held BX the gar-. age which can not be listed in any of the other classifications. Best Could Do “This will not give us as scientific - “and progressive a schedule as if we were able to redraft it, but it was ‘the best we could do, keeping the instructions to . Convention of the County Auditors Takes Stand Against Jorgenson’s Personal Property Schedule and the State Equalizers Submit to Alterations of Classifications to Eliminate Chief Cause of Complaint. blanks and, assessment books the counties have already had printed.” The Nonpartisan Leader was the only paper of the state to publish an analysis of the new schedule. This caused a more or less organized pro- test from all over the state. he state tax commission offered to back the governor’s office. Auditors from a majority of the counties were pres- ent, as well as many county commis- sioners and, assessors from over the state. Acting Governor Fraine, mem- rar of the board of equalization in the absence of Governor Hanna, pre- sided. Governor Frain called on FRANK E. PACKARD, Chairman State Tax Commission any state’s attorney who would start a suit for a property owner asking an injunction against the' enforce- ment of the board of equalization’s new plan of taxation. Finally com- laints grew so great that the state ard of equalization called the con- vention which concluded its sessions today. In the meantime the an- nouncement of the'tax commission that it was willing to back a suit in the courts, published only in the Leader, brought forth four state’s attorneys who were ready to take action. . : State’s attorneys who offered their services to the state tax commission were T. H. Burke of Minnewaukan, Benspn county; T. W. Burnham of Carrington, oster county; C. L. Waldron of Beach, Golden Valley county; William Langer of Mandan, Morton county. Among individuai taxpayers who interested themselves in the new schedule to a point of assuming the responsibility of having their state’s attorney start an action to knock it out in court was F. W. Mees, secre- tary-treasurer of the Morton Count: Farmers’ union.. Mr. Mees undértoo to be the plaintiff in an action if State’s Attorney Langer of Morton county would start it, which the lat- ter agreed to do. S g Thanks Attorneys “As the thing has worked out as well as it has,” says Tax Commission- er Packard, “we: will not have to call on these state’s attorneys who have so_generously offered: their ser- vices. . We 'afiprecmte, however, their actixéi,t’y in the cause of good govern- ment. ; ; The convention met yesterday in .. State Auditor Jorgenson to explain the purpose of the meeting. L Jorgenson Speaks “It has.been found necessary in this state,” he said, “to place flat raises on all the property in the state from time to time to make enough valuation so that levies “for ° state Eurposes fixed by law will raise enough taxes. Such a raise will have to be made again soon unless enough Eroperty now escaping taxation can e included to give the necessary larger valuation. For this reason the new schedule was adopted—to get this added valuation. There has been some criticism of the schedule and we want to get the auditors of the state together to discuss it and to see if some agreement can not be reached on the schedule; also to get an agreement, if possible, on what - per cent of true value the assess- ment this year shall be made. - “We have evidence that much prop- -erty. is escaping assessment, which can best be reached by the new class- ifications. 1 can not explain all about this property, but I can give an in- stance.. Take live stock. We know we are not assessing half of it in the state. The government census found 801,000 horse, but we found only 605,00 for taxation. The govern- ment found 950,000 cattle but our as- sessors only found 666,667. The gov- ernment found 250,000 sheep and the state only assessed 106,146. . In the hog line the government found 706,- 000, the state only 254,000 for taxa- tion.” ‘ Defends Lump Plan Mr. Jorgenson then went into a lengthy defense of-the ‘schedule, de- _classification, as fending strongly the lump assess- ment plan for various businesses and the minute classification of the goods of farmers and city householders. His argument along this line was printed by the Leader last week. Addison Leech of Cass county, who quits February 1 as auditor there to become secretary for the State Agri- cultural college, took the floor. “I first thought this schedule was cumbersome, but after thinking it ov- er more fully am of the opinion it is all right,” said Mr. Leech. “I can see no discrimination between the farmer and the city man in this schedule. I think it should be given the indorsement of this meeting and given a year’s trial at least.” Others Defend It. Several others who supported the schedule were called upon and it looked for a while as though the meeting was going to become an ad- miration society, with the schedule as the object of admiration. In the informal discussion which followed, however, someone asked Auditor Jor- genson how he was going to equalize the assessment on automobiles owned by stores, if their value was lumped with the rest of the store property. It was brought out strongly by sev- . eral that equalization would, be im- possible and that if boards of equal- ization ordered a raise in the assess- ment on autos in any district the businesses allowed to lump their as- sessments would not be affected, but that farmers and others would be the only ones “stuck.” This started, the ball rolling and the upshot was several vigorous opinions of county auditors condemn- ing the schedule. There seemed no chance now to get the schedule ap- roved and it was finally agreed to eave the question to a committee which should report the next day. Name Committee A committee was finally appointed consisting of F. E. Burton, auditor of Richland county; F. F. Vaughan, auditor of Towner county; James A Brown, auditor of Rolette county, Tax Commissioners Packard, Wallace and Steele, State Auditor Jorgenson and County Commissioner O. E. Lof- thus of Walsh county. Some effort was made to cut down the represen- tation of the tax commission on the committee but it did not succeed. The committee met at the Grand Pacific hotel that night and this morning reported to the convention. The report recommended leaving it to the tax commission to interpret the schedule and shape up rules for auditors and assessors, instructing the tax commissioners to so frame the rules, among other things, “that class- ifications 53 and, 89 (the lump assess- ment classifications) shall contain no other property than that which may be so classifled because of its pe- culiar association with that business, and all other propertx owned and used in such business shall be separ- ately listed and assessed under a proper classification covering that special property.” Eliminate Lump Plan This, as before explained, elimin- ates practically all the lump assess- ments. It is-probable that under the instructions furniture in hotels will not be listed separately like a farm- er’s furniture, but in most other classes, says Chairman Packard of the tax commission, it will nullify entirely” the lump plan so vigorously protested against. The schedule will still go minutely into the personal property holdings of farmers and valuations for taxation of this class of taxgayer will likely be boosted, but other classes of property own- ers will not = escape this minute at first intend- . A store will have to list its horses, autos, harness and wagons in the same classification that a farmer will, instead of lumping them all to- gether as first planned. Just how many of the other com- plications and injustices the tax commission will get rid of through the special instructions it will draw up will not be known till the - . commission gets busy on the matter and figures it out. Saw Suits Ahead Probably the thing that influenced as much as anything else the members of the board of equalization and State (Continued on page 14) T et o I