OCR Text |
Show THE MINE TAX LAW. Governor Bamberger undoubtedly believes be-lieves that he was justified in signing the Bevan-Parker mine tax bill, and his decision will be acquiesced in by many just as it was by representatives of the mining industry, since it puts an end to a controversy that has been acute at intervals over a period of several years. The law is inequitable and unfair to the mining industry, whose taxos under it must be computed at three times the net proceeds, regardless of how other property in the state is valued for taxes. The argument of the members of the legislature, who insisted on the flat "three times" phraseology, was that mines should pay on net proceeds three times the amount that other property paid. Theoretically this may be entirely en-tirely correct. It involves the assumption assump-tion that other property is to be taxed at 100 per cont of its value. Outside of Salt Lake, however, no property in the state is taxed at its actual value. In some counties the valuation is as low as50 per cent or 60 per cent, so that, as related to those counties, the mining industry is paying at the rate of six times or five times the net proceeds. Men interested in mining simply wished the law to be framed so that the state board of equalization would have the power under the law to equalize mine taxes to correspond with the tax on other forms of property. For instance, if the averago tax on other property throughout the state was 75 per cent of its actual value, then mino proceeds should be taxed on the multiple of 2. If property throughout the state was assessed at 100 per cent of its value, then the mine proceeds should be taxed on the multiple of three. The mining industry asks for nothing unfair. It asks simply for a square deal one based on equity and justice. The senate was willing to .give this and the governor unquestionably endeavored en-deavored to bring it about, but the house declined. It is understandable why representatives from outside counties might selfishly be glad to impose unjust un-just burdens on Salt Lake county and industries centering in Salt Lake county, coun-ty, since by tho imposition of these excessive ex-cessive taxes their own constituents would escapo the payment of their just share of taxes, but why somo men representing rep-resenting Salt Lake county in the legislature legis-lature should be parties to such procedure proced-ure is beyond human comprehension. The representatives of the mining industry in-dustry throughout have acted with admirable ad-mirable restraint and fairness. Early in the session an arrangement was made by which they agreed to withdraw their contest of tho occupation tax law and it is only just to add in this connection that the decision of Judge Johnson in the federal court mado about this timo did not go into tho merits of these cases at all and was not a victory for the state in the sense that it obligated tho mining companies that were plaintiffs to pay tho tax. Several hundreds of thousands of dollars wero involved in these suits, and tied up indefinitely, and the state needed the money badly. The agreement, reached at this time by tho mining companies and the state administration, ad-ministration, was that these 6uits should be withdrawn, the tax paid, and that the legislature should pass a law leaving ! it to the board of equalization to fix I somo multiple, not exceeding three times the net proceeds. It was tho general understanding at tho time that leading members of tho legislature were consulted con-sulted by the state officers beforo this arrangement was made, and that their only objection was to tho original proposition, propo-sition, to place checks for the payment of the occupation tax iu tho hands of some state officer, who would turn them over to the 6tato treasurer upon passage of tho laivs agreed upon. Some members mem-bers of the house who wero in tho meeting meet-ing are reported to have been indignant indig-nant at the doubt of their integrity implied in tho placing of tho checks in escrow, ts'o other objection was made bv tbc.-c men to far as we havo been 3 able to learn. This objection was overcome over-come by the payment of the tax by tho mining companies, who relied upon tho good faith of the legislature. The outcome out-come demonstrated that tho escrow is a necessary institution to hold some people. The mining industry, we believe, expects ex-pects to havo imposed upon it more than its fair share of tho burden of taxation, but this load should not be so disproportionate as to cripple it. If the mines must pay taxes on three times their net proceeds for all time, then other property should be assessed for approximately 100 per cent of its value, and it is tho duty of tho state board of equalization immediately to bring up those counties to approximately that amount. Unless the stato board of equalization is alert and courageous it is possible for any county to evade its just share of tho costs of the state government. |