BIENNIAL REPORT The following report, showing the results of the work accomplished by the Nevada Tax Commission and the State Board of Equalization in the years 1917 and 1918, is published in accordance with section 19, chapter 177, Statutes of Nevada, 1917. The Legislature of 1917 enacted a law under which the Tax Commission was reorganized, and in place of being a commission composed, with one exception, of ex officio members, it became a commission composed of seven members, two of whom, the Governor and one associate member of the Railroad Commission, are ex officio members, and five of whom are appointed by the Governor to represent the five leading industries of the State. The personnel of the Tax Commission under the provisions of the law and by appointment of the Governor was, in 1917, as follows: Governor Emmet D. Boyle, Chairman; Hon. J. F. Shaughnessy, Associate Member of Railroad Commission; Hon. Moses Reinhart, Winnemucca, appointed for two years, representing Hon. P. Y. Gillson, Reno, appointed for four years, representing business interests; Hon. F. W. Lockman, Rhyolite, appointed for two years, representing mining interests; *Hon. George Henningsen, Minden, appointed for four years, representing land interests. The reorganized Commission held its first meeting at Carson City, April 23, 1917. F. N. Fletcher of Reno was appointed Secretary of the Commission. This meeting was continued with various recesses through the month of May, during which time the valuations of the various interstate and intercounty railroads and public utilities were established for taxation purposes; and the valuations of intracounty railroads and public utilities were established in order to recommend the same to the various County Assessors as provided by law. During these sessions the following owners of taxable property appeared to offer evidence as to the proper valuation of their properties: American Express Company, Las Vegas and Tonopah Railroad, Nevada Telephone and Telegraph Company, Wells Fargo & Co. Express, Western Pacific Railway. The valuations established on all railroad and public utility properties at these meetings and the apportionment of same to counties is set forth in Tax Commission Bulletin No. 12 issued for the use and direction of County Assessors. *Resigned in August, 1918, to enter U. S. military service. STATE BOARD OF EQUALIZATION, 1917 Under the Tax Commission law of 1917 it is provided that "beginning on the third Monday in August the said Commission shall, together with the County Assessors of the several counties of the State, sit in Carson City as a State Board of Equalization. At such meeting it shall be the duty of the State Board of Equalization to review the tax rolls of the various counties as corrected by County Boards of Equalization. and to raise or lower for the purpose of state equalization the valuations therein established by County Assessors and County Boards of Equalization, on any class or piece of property in whole or in part in any county," except interstate and intercounty railroad and public utility property, the valuation of which is fixed by the Tax Commission. Pursuant to the provisions of the law, the State Board of Equalization met at Carson City on Monday, August 20, 1917. In addition to members of the Tax Commission the various counties were represented by the following Assessors or by persons appointed by the County Commissioners in cases where it was impossible for the Assessors to be present: Churchill County, by C. M. Way, Deputy Assessor: Esmeralda County, by R. T. Armstrong, Deputy Assessor: Humboldt County, by A. E. Organ, Assessor; Lander County, by H. R. Lemaire, Assessor; Lincoln County, by D. J. Ronnow, Assessor; Lyon County, by H. S. Pole, Assessor: Mineral County, by C. L. Dimock, Deputy Assessor; Nye County, by W. H. Thomas, Assessor; Ormsby County, by J. H. Stern, Assessor; Storey County, by T. W. O'Connor, Assessor; The board remained in session until September 24, engaged in the consideration of the valuations of the various classes of property in the State and the comparative assessed valuations of such properties as had been established by the Assessors. A stenographic report of this meeting has been transcribed and is on file in the office of the Tax Commission. A comparison of the county rolls disclosed that little attention had been paid by Assessors to the recommendations made by the board in 1917 for the purpose of bringing about uniformity in the assessed valuations of different classes of property throughout the State; particularly was this true in respect to the classification of lands for assessment purposes. A large portion of the session was devoted to the effort of bringing about a nearer approach to uniformity, and changes involving a large portion of the lands on the rolls were ordered by the board. Extensive changes were also ordered in the assessed valuations of various classes of live stock as they appeared on the rolls of some counties. Range cattle were raised from $35 to $36 per head, and sheep from $5 to $8 per head, in all counties. For the purpose of securing equity in state taxation between the different counties the board after full debate and long consideration recommended the adoption of the following schedule to be used by County Assessors in 1918: LIVESTOCK VALUATIONS FOR 1918 Stock cattle, including all calves born in 1917, per head.. Horses, work Horses, saddle.. Horses, buggy. Horses, stock. Assessment of all other cattle left to Assessors. $38.00 Left to Assessor Left to Assessor Left to Assessor NOTE Cultivated land shall include all vegetable, orchard, grain, timothy, red top, alfalfa, or any other land of same value as cultivated due to special conditions. First-class cultivated is land capable of producing five tons of alfalfa, one and one-half tons of timothy or red top, or one ton of grain per acre. Second-class cultivated is land capable of producing three to five tons of alfalfa, less than one and one-half tons of timothy, or fourteen hundred to two thousand pounds of grain per acre. Third-class cultivated is land capable of producing two to three tons of alfalfa, or eight hundred to fourteen hundred pounds of grain per acre. Fourth-class cultivated is land capable of producing less than two tons of alfalfa, or less than eight hundred pounds of grain per acre. VALUATION OF MOTOR-DRIVEN VEHICLES, 1918 In order to secure a uniform and equitable assessment of motordriven vehicles in the State, a list of prices used by insurance companies and showing the values of the various cars manufactured was adopted by the State Board, and the depreciated value of used cars worked out on the following basis: Motor vehicles of older model than 1914 were left to Assessors for valuation. VALUATION OF MERCHANDISE STOCKS, 1918 The last previous inventory shall be taken as the basis of valuation, provided the inventory was taken within six (6) months prior to the time of assessment, and a deduction of fifteen per cent (15%) from the inventory value shall be allowed for depreciation; the factor of 90 per cent shall then be applied to find the assessed value. Under this rule a stock of merchandise showing an inventory value of $10,000 would have a depreciated value of $8,500, and an assessed value of $7,650. During this session of the State Board of Equalization hearings were granted to the following taxpayers, who had either petitioned for reductions in their assessed valuations or had been cited to show cause why their assessed valuations should not be increased: Aurora Consolidated Mines Company, assessment left as fixed by county Carson City Water Company, valuation reduced from $80,000 to $75,000; Central Pacific Railway, petition for reduction in assessed valuation of Consolidated Copper Mines Company, increased from $195,266 to $459.776; Ely Securities Company, valuation raised to $35,000; J. B. O'Sullivan, granted reduction of $2,000 in assessment of town property in Sparks; Mason Townsite Company, petition for reduction, denied ; Nevada Consolidated Copper Company, increased from $4,580,607 to $4,596,502; New Mines Company, reduced from $20,000 to $7,500; Pacific Portland Cement Company, increased $5,000 on improvements; Rose Vieira, assessed valuation of plaster property at Mound House reduced from $1,500 to $1.000; Smith Valley Colony Ditch Company, petition denied ; State Bank and Trust Company, petition denied. On September 24, the State Board of Equalization adjourned. MEETING OF THE TAX COMMISSION, OCTOBER, 1917 As required by law the Tax Commission met on October 1, 1917, as a final Board of Equalization and remained in session until October 20. During this meeting hearings were granted to the following taxpayers who had petitioned for a reduction in their assessed valuations or had been cited by the Commission to show cause why their assessed valuations should not be raised: MEETING OF THE TAX COMMISSION, FIRST SESSION, 1918 Under the provisions of chapter 177, Statutes of Nevada, 1917, a regular session of the Tax Commission beginning on the second Monday in January of each year must be held at Carson City, at which valuations shall be established for railroads, public utilities and those classes of property whose valuations are fixed by the Tax Commission. Pursuant to the law the Tax Commission met on January 14, and adopted the valuations on lands, live stock, merchandise and motor vehicles that were recommended and adopted for 1918 by the State Board of Equalization, at its meeting in August and September, 1917, as set forth in the preceding pages, and instructed the Secretary to have bulletins showing such valuations printed and mailed to County Assessors. During this session which recessed from time to time hearings were granted to various parties interested, and the following appeared: Austin Water Company. Bullfrog and Goldfield Railroad. The hearing of the Nevada Mine Operators' Association was held at the request of the Tax Commission in order to discuss the matter of the deduction of federal taxes from gross proceeds to find net proceeds on which taxes should be paid. The question was submitted to the Attorney-General who, in an exhaustive opinion, held that taxes were not a legal item of costs against proceeds. This opinion was accepted by mine operators throughout the State. A contrary opinion would have resulted in great loss in taxes to the State and counties, under the heavy war taxes levied by the National Government. The valuations established for railroads and public utilities in the State and their apportionments to counties is set forth in Tax Commission Bulletin No. 19. STATE BOARD OF EQUALIZATION, 1918 The State Board of Equalization met on the third Monday of August, 1918, as provided by law. Several counties were not represented by Assessors, and the tax rolls of Churchill, Lander, and Nye Counties had not been filed. Recess was taken until August 21. On this date rolls of Lander and Nye Counties were reported filed. After discussion it was voted to recess until September 9. On September 9 the board again convened. Rolls from all counties, except Churchill, were reported filed. The board in 1918 consisted of the Tax Commission and the following Assessors or Deputy Assessors : Churchill County. Clark County. Elko County.. .C. M. Way Chris Neilsen |