Salt Lake Tribune | 1914-02-13 | Page 4 | Taxing Irrigation

TAXING IRRIGATION. Tho WcBt is greatly interested in the roversal of the treasury department ruling rul-ing that irrigation districts aro not "political" subdivisions within the moaning of tho incomo tax law, but rather "business" districts, exercising no governmental functions not directly connected within the business which they aro created to transact. The treasury treas-ury ruled in tho .first place that irrigation irriga-tion bonds, not being bonds of a political po-litical subdivision, wero subject to incomo in-como taxes and must bo roportod, and tho taxes collected "at tho source." "When the matter was referred to the Attorney Geuoral, however, the treasury treas-ury was overruled, and it is uow held that interest on irrigation, reclamation, drainage, road and leveo bonds is not subject to incomo taxes, and owners of th'em need not report income from them. This will bo good news to the irrigation irriga-tion districts. It will make saleable bonds that have not been saleable up to this time, and the bonds should bring higher prices.