NEED OF A STATE TAX COMMISSION IN COLORADO 83 



known as the general property tax. Briefly this may be described 

 as the system whereby the assessor is directed to ascertain how much 

 property of every description is owned by each individual, and to 

 appraise such property at its true cash value. The total value of 

 the property thus ascertained of each person forms the basis upon 

 which his tax is computed. 



The assessor is a local officer generally elected by the voters in 

 the county, township, city or district. The valuation of the prop- 

 erty for taxation in the assessment district is determined by the 

 local assessor. The valuations of the various districts are added 

 together to form the valuation of the state. On this sum as a basis, 

 the per cent of tax levy for the state is determined. The amount of 

 state tax to be paid by the taxpayers in each county or local assess- 

 ment district is determined by finding what proportion the total 

 assessed value of such district is of the total assessed value of the 

 state. It is therefore clear that if the local assessor can establish 

 for the inhabitants of his county a record for poverty and, by under- 

 assessment of property of all kinds, keep the valuation low, the pro- 

 portion of state tax borne by the taxpayers in that county will be 

 much below what it should be. Taxes will be lowered and such an 

 assessor will be popular. There is, therefore, a constant tendency 

 to overlook property and underestimate its value in making assess- 

 ments. 



The above general property tax system is weakest in its attempts 

 to secure the assessment of personal property. Such a method of 

 taxing real estate is beUeved to be correct in theory and the objections 

 to it come from defects in administration. However, the application 

 of the general property tax system to personal property is con- 

 demned by all writers on finance, and has been abandoned by prac- 

 tically all civilized countries except the United States. The reason 

 for its failure is the absolute impossibility of finding intangible prop- 

 erty, such as moneys, credits, stocks, bonds, etc. Numerous illus- 

 trations showing how personal property escapes the assessor might 

 be given. The following from the Ohio Special Tax Commission 

 of 1893 is significant: 



