Rensselaer Semi-Weekly Republican, Volume 34, Number 18, Rensselaer, Jasper County, 1 November 1901 — SWEEPING TAX EDICT. [ARTICLE]

SWEEPING TAX EDICT.

Illinois Supreme Conrt Rules for Broad- . er Assessment of Corporations. Every corporation in the State of Eli* nois must be taxed on its capital stock and franchise assessed at a fair cash valuation based on market values. The Chicago traction, gas, electric and other rast public utility corporations must be assessed fully on their stock and tl\eir franchise rights. Mandatory order is laid on the State Board of Equalization that these properties be added to the tax lists. The foregoing is the substance of the decision handed down by the Illinois Supreme Court at the instance of the Chicago Teachers’ Federation. It is regarded ns the most important decision ever made in Illinois affecting the taxing of corporate interests. By this decision, concurred in by every member of the Supreme Court, it is estimated that from $200,000,000 to $335,000,000 will be added to the assessment lists of Cook County. The assessed valuation of property In Cook County is $305,000,000, which at the 5 per cent rate would yield $18,250,000 taxes. Assuininbg that the increase should approximate $300,000,000, the added income from taxation would be $15,000,000, making a total„of $33,250,000. Of course, however, the tax rate would shrink with the*greater valuation. Twen-ty-three Chicago and Cook County corporations were specifically mentioned in the plea for mandamus filed by the Teachers' Federation. Their demand that $268,000,000 be added to the taxable property values for 1900 and assessed against these corporations has now been approved and served on the State Board of Equalization. The decision opens the way, so those who have won the fight contend, for legal proceedings to collect back taxes for the last twenty-five years on corporation stock and franchises. Heretofore taxes have been collected from corporations chiefly on the small amounts of tangible propertyjinearthed by local assessors. The sweeping decision of the Supreme Court is expected to change the entire industrial map of Illinois and especially of Cook County unless immediate changes in corporate taxation laws result. Attorneys who have conducted the case contend that legislation is the only relief that may be sought by the corporations, asserting that, as no federal point is involved, there can be no appeal to the United States courts. To attempt to collect back taxes for a quarter of a century on the market values of the stock of corporations organized in Illinois, it is admitted by officials, would bankrupt the companies. Already assertions are made by attorneys, government officials and business men that the legal yuling, unless special corporate taxation laws are soon enacted, will drive these companies from Illinois.