The Sun

FRIDAY, APRIL 30, 1920.

WOULD ASSESS MONEY IN BANKS AT FULL VALUE

DISPUTE BETWEEN STATE AND AN ASSESSOR.

May Be That County Official Will Be Haled Into Court to Make An Ending of Bad Muddle—More Funds For Carrying On the Expenses of the Commonwealth.

Gov. Simon Bamberger says it is probable that the state board of equalization and assessment will ask the supreme court for a ruling on the dispute that has arisen between it and James E. Lynch, the assessor of Salt Lake county, concerning the assessment status of money. The state board takes the view that business men almost universally treat money on commercial deposit, in banks as ready cash, while Lynch holds that such cash is a solvent credit. The law requires that cash on hand shall be assessed at its full market value. the merchant being permitted to subtract from his "solvent credit," or the amounts which the business itself owes. In the event that the supreme court shall rule in accordance with the view held by the state board of equalization, that cash on hand shall be assessed at its full market value with the exemptions noted. it is estimated that the assessed valuation of Salt Lake county alone will be increased about $8,000,000 this year.

Discussion of the question came up at a session of the state road commission last week at which were present members of the Salt Lake county commission. At that time the governor announced intention of the equalization board to make the test in court, but Secretary William Bailey says that no actual steps toward this end have been taken as yet. "There is this much to say on the general situation with regard to state revenues at this time,' declares Bailey. "The board will use every effort under the law to get all the property possible on the assessment rolls, In other words, the state must have the money. Present estimates are that the revenues of the general fund will fall short of the expenditures by $500,000, and the situation is not improving as time goes on. To raise that amount the state board would have to increase the assessed valuation of the state by 50 per cent on every item. Such action is, of course, impossible. But we shall use every legitimate means at our disposal to keep the general fund out of bankruptcy.

"It looks now as though the state's total assessed valuation for 1920 will be about the same as that for 1919. when it was around $692,000,000. The reclassification of farm lands. with their reappraisal, will add about $25,000,000 to the assessed values of farm lands in the state, property which has been most generally undervalued as a class. We expect also an increase of about $10,000,000 in the value of merchandise in Utah. Coal land valuations under the new plan as determined by law will probably add another $2,000,000 to the total. Against these increases must be offset a decrease of about $30,000,000 in the assessed valuation of mines. owing to the falling off in their proceeds during 1919. This is unavoidable. There is also a falling off in live stock assessment of some $5,000,000 coming.

The net result, therefore, is that the assessed valuation of the state will be about the same this year as last. The state board is looking for every chance it has under the law to add to the state's assessment. The public utilities within its jurisdiction have been carefully scanned, and on one item alone—that of rolling stock -a raise of 25 per cent over last year's figures has been ordered. Such an increase is not possible equitably on the right of way and other classes of property owned by railroads, for example.

"The board expects soon to conclude its work as to policy. The actual work of reaching the assessed valuation figures of property within the jurisdiction of the state board. however, will not be concluded until the legal time limit, which is the first Monday in May."