We recommend that the townships be allowed to retain enough out of the State and county taxes collected to fill their school tax, and that the sum so retained be made good out of the first collection of taxes by the county treasurer, and that thereafter the State, county, and town shall each be entitled to its proportion of taxes and interest as received. We adopt the existing plan of having the State purchase all lands at tax sales not taken by other bidders, but provide that the State shall hold the title in trust for itself and the county and town, and pay to each the amounts due only after they have been received from the lands. By this plan the State, county and township each carries its own taxes. The officers of a township or county havea direct motive for imposing only legal taxes, since they can receive only what is collected, and if taxes are rejected as illegal they will be charged to the locality. We do not see what objection can be made to the justice of this plan. Our theory is that local taxes should be paid by each locality. There is no safety in any other theory, since otherwise the burden of taxes would not fall on those who vote them. If this theory is just, it is most unjust that the State should be compelled to purchase every worthless tax title, made worthless by the carelessness, disregard of law, or fraud of the officers originating the tax. VIII. THE SALE OF LAND FOR DELINQUENT TAXES. There is no other branch of the present law in which its failure has been sc conspicuous. The most valuable property will bring no more than the tax. Tax titles are proverbially of little value. There is no real competition at the sales. When tax titles are litigated they are usually broken, and yet it would seem that the present law does everything which the statute can do under the present system of sale to make a tax title valid. The difficulties are: 1. The disregard of the requirements of the law. the necessity of compliance therewith. Officers can not be taught 2. The redemption allowed tends to prevent any one from bidding for any land more than the amount of the tax. 3. The fact that the contests as to the validity of tax deeds are usually bctween the holder of the original title, who has been guilty only of negligence, excused perhaps by poverty, and one who has paid but a trifle for valuable property, makes judge and jury sympathize with the former. The power of this sympathy is incalculable. It is liable to defeat the most carefully drawn provisions to protect the tax-title holder. The remedy is: 1. In enforcing upon local officers the necessity of a strict compliance with the law. 2. In giving ample opportunity to every one who disputes the validity of a tax, to vindicate his rights at as little expense as possible. 3. In giving the tax payer every indulgence compatible with the recovery of the tax, so as to develop in community the feeling that delinquents are morally to blame, and ought to suffer therefor. 4. In such provisions as to sales as will on the one hand secure fair competition, so as to protect the tax payer from a sacrifice of his property, and on the other will make the purchaser secure in the title bought. In order to accomplish these purposes, we have provided that there shall be an adjudication of the validity of every tax before sale, and that every one interested may appear in court and contest such tax or any part thereof. We have provided that the sale shall be without redemption, but have fixed the time so that the sale will come about the end of the period now fixed within which redemption may be made. Objections to the sale may be made before confirmation. After the issue of the deed, the court may put the purchaser in possession. The deed is to convey to the purchaser a perfect title to the land bought, subject only to be set aside on application by one who has paid his taxes, or whosc property is exempt. The notice of the beginning of judicial proceedings and for sale are by publication. No other notice seems possible. We have provided that boards of supervisors may make such other provisions for notifying tax payers as they may deem wise. Doubt may be suggested as to the constitutional power of the legislature to make such sale conclusive. After the most careful consideration of the question, we see no reason to think the State cannot enforce an alleged lien for taxes by judicial proceedings, as well as a private individual might any other lien; nor why such proceedings on behalf of the State should not be as conclusive. Nor is any new principle involved in the fact that the notice to the parties interested is not personal. Under the present law no personal notice of any step in the proceedings is necessary, and yet the assessments of a supervisor are conclusive as to the value of the property assessed. The enforcement of liens on property seized by public notice in admiralty courts is of undoubted validity. Liens on real estate against non-residents are constantly enforced in other courts, on published notice. The difference in such cases made between residents and non-residents seems one of policy and not of constitutional obligation. IX. SPECIFIC TAXATION. A considerable portion of property is withdrawn from the operation of the ordinary laws of taxation, and is subject only to specific taxation. The only ground upon which any property ought to be withdrawn from local burdens is that it extends through many localities, and its value can only be estimated as a whole. Railroad and telegraph lines are of this class. They belong to no locality, nor can their value be ascertained by adding together the values of the property in each locality. But these reasons do not apply to street railroads. They are confined to narrow limits, usually to but one municipality. We see no good reason why they should not be left to be taxed in their respective localities. Nor do we see any sufficient reason why the ordinary rules of taxation should not be applied to mining companies. When property is taxed only specifically, the amount of such tax should be equal, as near as may be, to the average rate of taxation for all purposes paid on property in general. If heretofore, for the purpose of favoring railroads or mining companies, a lighter standard has been adopted, no reason for its continuance now exists; except where inviolable charters limiting the right of taxation have been granted. We think the question whether our railroads, organized under the general law, pay their fair proportion of taxation, is one which ought to be carefully investigated. The tax on street railways, one-half per cent of their capital stock, as now provided, ought to be changed at once. Not only is the rate much below that of ordinary taxation, but a street railway may be built with borrowed money, with a trifling amount of stock, and so almost wholly escape taxation. The taxes paid by some street railroads show that this theory has been put in practice. We urgently recommend that such railroads be left to be taxed as other property. It may be questioned whether the matter of specific taxation comes within our duties, but the subject is one of such interest to the general tax payer that we hope the recommendations made in reference thereto will not seem out of place. We have discussed the principal questions connected with a law for the assessment and collection of taxes, but have not alluded to many minor changes recommended. We have tried to correct many defects in the form of the existing law, where we have preserved its substance. One desirous of ascertaining the full extent of the changes recommended, can only do so by a careful comparison of the existing law with our bill. In addition to our main bill we have prepared several bills which seem necessary to fully accomplish the object of our commission. 1. Two bills to repeal the provisions of the law as to the taxation of street and train railroads and have them subject to the usual taxation. 2. A bill to amend the law which prescribes the time for the meeting of the boards of supervisors in the month of June in those years when the State Board of Equalization is required to meet. 3. A bill providing amendments to the present highway law, the object of which is to provide for the levy of the highway tax upon the general assessment roll by the supervisor in all cases. At present, in most townships, the supervisor only spreads upon the general township assessment roll that portion of the highway tax which is returned by the overseer as delinquent. Under this bill the supervisor will in all cases assess the highway tax so that all such taxes will have to be paid to the township treasurer like other taxes. We preserve the right to pay such taxes to the overseer in labor, and provide that he shall give a receipt which the township treasurer shall credit as money to the tax payer. The advantage of these changes is that the validity of a tax or a tax title will no longer be dependent upon the regularity of the proceedings of the overseer. It is notorious that defects are now more commonly found in the highway taxes than in any other upon the roll. Under the plan we propose a large proportion of these defects will be remedied, so far as the validity of the tax is concerned. 4. A bill repealing various acts. These acts will not be needed if our bill becomes a law. We have preferred to embody the repealing clauses in a separate bill rather than to add them to our main bill, so as to avoid the cumbersome and wordy title which otherwise it would be customary to employ. We submit the results of our labors to yourself and the Legislature, hoping that whatever imperfections may be discovered, the changes recommended will be found an improvement of the present law. Respectfully, JOHN MOORE. E. O. GROSVENOR. C. A. KENT. H. H. HATCH. The following are the bills introduced by the Governor's message, as reported by the Tax Commission: Bill No. 1, entitled A bill to provide for the assessment of property and the levy and collection of taxes thereon; Bill No. 2, entitled A bill to repeal section 2527 of the compiled laws of 1871, being section 26 of an act approved March 5, 1867, entitled "An act to provide for the formation of street railway companies;" Bill No. 3, entitled A bill to repeal section 2482 of the compiled laws of 1871, being section 22 of an act approved February 13, 1855, entitled "An act to provide for the construction of train railways;" Bill No. 4, entitled A bill to amend section 303 of the compiled laws of 1871, being section six of an act entitled "An act to provide for a State Board of Equalization; Bill No. 5, entitled A bill to amend sections 4, 5, and 8, of chapter 2, sections 4 and 7 of chapter 3, section 3 of chapter 4, sections 5 and 13 of chapter 11, and to add a new section to chapter 12 to stand as section 14, of Act No. 243 of the session laws of 1881, entitled "An act to revise and consolidate the laws relating to the establishment, opening, improvement, and maintenance of highways and private roads, and the building, repairing, and preservation of bridges within this State." Approved June 8, 1881; Bill No. 6, entitled A bill to repeal section No. 1138 of the compiled laws of 1871, being an act approved March 21, 1865, entitled "An act to provide for assessing property in certain cases at any time between the first days of May and October in each year, and for the more speedy collection of taxes in certain cases ;" and section No. 1141 of the compiled laws of 1871, being an act approved April 5, 1869, entitled "An act to provide for the payment of taxes levied and assessed upon lands purchased and held for non-payment of taxes;" and act No. 169 of the session laws of 1873, approved April 25, 1873, entitled "An act requiring settlers under the homestead laws of the United States to pay taxes after a residence of five years;" and act No. 180 of the session laws of 1873, approved April 29, 1873, entitled "An act relative to licensed homestead lands, and to provide for taxing the same in certain cases;" and act No. 37 of the session laws of 1873, approved March 22, 1873, entitled "An act relative to the payment of taxes; and act No. 118 of the session laws of 1873, approved April 18, 1873, entitled "An act relative to granting injunctions in certain cases," and act No. 6 of the session laws of 1874, approved March 24, 1874, entitled "An act relative to taxation;" and section No. 1136 of the compiled laws of 1871 as amended by act No. 82 of the session laws of 1875, entitled "An act to provide for the return and settlement of tax sales of county treasurers;" and sections No. 967 to No. 1133 both inclusive, of the compiled laws of 1871, the same being act No. 169 of the session laws of 1869, approved April 6, 1869, entitled "An act to provide for a uniform assessment of property, and for the collection and return of taxes thereon," also all acts amendatory thereof. Whereupon, His Excellency, the Governor, and the Honorable State officers, and the members of the Tax Commission then retired. After which, On motion of Mr. G. H. Hopkins; The joint convention adjourned. EDWIN S. HOSKINS, Secretary of the Senate. DANIEL L. CROSSMAN, The Honorable Senators having retired, The House was called to order by the Speaker. The roll was called, and a quorum of the members was present. The Speaker announced that the Senate and House had met in joint convention and had listened to a message from His Excellency, Governor David H. Jerome. Mr. Granger moved that the House do now adjourn; Which motion did not prevail. Mr. Estabrook moved that the recommendations contained in the Governor's message as to the various State institutions be referred to the respective committees on those institutions, and the recommendation as to reapportionment to the select committee on that subject; Which motion prevailed. On motion of Mr. Estabrook the six bills thus introduced by the Governor, as the work of the Tax Commission, were read a first and second time by their titles, referred to the committee of the whole and placed on the general order for immediate action. Mr. Caruss moved that 500 copies of the Governor's message and the appendix relative to the work of the fire commission be printed for the use of the House; Which motion prevailed. The Speaker announced the following appointments to fill vacancies: Assistant Janitors-Wm. H. Dunn, Samuel Moore; Mr. L. C. Rice, present assistant janitor, taking the place of janitor. Messengers-Charles H. Alvord, E. J. Andrus, Egbert Van Buren, Joseph Edwin Greusel. Mr. A. S. Partridge moved that a committee of three be appointed to wait upon the resident clergymen of the city and invite them to conduct the religious exercises of the House; Which motion prevailed. The Speaker appointed as such committee Messrs. A. S. Partridge, Barton, and Littell. Mr. Parsons moved that the clerk be instructed to procure 1,000 copies of the daily Journal for the use of the House; Which motion prevailed. On motion of Mr. Granger, The House adjourned. |