out any tax upon any kind of property, and machinery was provided for the administration of state tax laws and the collection of all state revenue directly by agents of the state through the State Department of Revenue. This new and modern system of financing state expenses has operated with a minimum of friction and complaint, and in contrast with former revenue necessities of the state, has provided liberally for its need. The total of revenue collections by the state for its general fund for the year 1920, the last year under the old system, was $3,027,413[1], and for the fiscal year ending June 30, 1928, was $13,912,302, leaving a substantial cash surplus of $2,235,232 at the end of the fiscal biennium. Collections by the state for the state highway system are not included. Prior to the year 1920 the state had made little more than a gesture in the direction of developing a state system of public roads. Its collections for this purpose were nominal and intended mainly to meet the conditions of federal aid. In 1928 (fiscal year) the collections of revenue for the state highway fund were $15,782,254. This large and annually increasing sum was for the year 1928 ample for adequate maintenance, bond interest, sinking fund, and amortization, with a balance of about eight million dollars (including federal apportionment) for new construction.
For the same period here under consideration, 1920-1928, the revenues of local units of government in the state—the counties, school districts and municipalities—have progressively increased and are raised by the method in general use by local governments throughout the country, that is, by a direct tax on property.
We are citing, preliminarily, these few outstanding facts, as the basis for our assumption that, in providing for the general survey we have undertaken, there was not in the legislative mind the thought that our revenue system was in need of another general and complete reconstruction; but that it was desired to make a searching inquiry into the operation of the system that we have, to test the reasonableness and equality of its bearing upon different groups and classes of taxpayers, and to recommend such changes as the results of investigation would seem to justify.
With this conception of our responsibility we caused to be organized a group of trained men and have used the limit of time and means at our disposal to make the survey as thorough as possible.
- ↑ Exclusive of a property tax of $4,103,137 by the state for 3 months of the 6months school term. This tax was levied as a state tax only in 1919 and 1920 to equalize one-half of the six months school term. It was a county tax before 1919 and has been a county tax since 1920.
