Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. The valuation of mines and oil properties

Collection:: Economics Books

THE VALUATION OF MINES AND OIL PROPERTIES 25 3 of the cost of operating. This amounts to no tax when the profits are 6 per cent or less, to 10 per cent tax on gross produc- tion when the profits are 20 per cent of the gross, to 31 per cent when the profits are so per cent and so on up to the limit of 66 per cent of the gross production when the operating expenses approach zero. Propriety of Taxing Mining Property. — The question of the propriety of taxing mining properties is an important one. In states such as Michigan and Minnesota where mines make up a large proportion of the industry of the state it is necessary that mining properties bear a large share in the maintenance of the government which exists largely for their protection. In the states just mentioned a closer approximation of the value of the ore underground is possible than in states where the mining interests are largely concerned with precious metals. This should not be construed to mean that the methods of assess- ment now in vogue in the former should be considered the proper ones. There is no doubt that taxation of mines in any form must retard to some extent the development of the mining industry which is of such economic value to the country. It also must be granted that in certain communities the mining interests are so large that it is only proper that they pay their share of the governmental burden. Injustice can be avoided only by the exercise of caution when mineral lands are to be taxed. That taxation may run riot has been shown in Minnesota in the case of mines located within the boundaries of municipalities. In Buhl, Minnesota, the 1913 municipal tax levy was $12 5,000 or $125 per inhabitant. The town had 172 voters and had over 100 persons on the pay roll during the year. Only 1} per cent of the assessment was paid by the inhabitants and ¢82 per cent by the Mining Companies. In Keewatin the levy amounted to $374.10 per inhabitant. The township of Stutz in 1914 spent more than $goo for every voter. By court order some of these levies have been modified but they show what extremes are possible. It is understood that the per

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