MONTANA. STATE BOARD OF EQUALIZATION. RULES ANL REGULATIONS. (Jnrnpll ICam ^rljnnl SItbrarg .>..-..-._-??'■"*" University Library KFM9478.A44A2 1898 ) Rules and regulations. 3 1924 024 690 475 „ \ RULES ^■f / i>ri i.t \ •^ ' -AND- REGULATIONS OF p J lonfil ol Fii Id ifit f j\j\X vl v L^v tlvl Lvll V — OF- The State of Montana. Prepared by The State Board of Equalization For General Use. 1898 Independent Publishing Company Helena Cornell University Library The original of tliis book is in tlie Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924024690475 RULES -AND- REGULATIONS OF ] Dnnrfl n[ [n n m\ r J U\J\\ \A \J Lv kaW L\\ V OF- The State of Montana. Prepared by The State Board of Equalization For General Use. 1898 Independent Publishing Company 4G480 Rules arid Regulations. Office of the State Board of Equalization, ) Helena, Montana, Jan. i, 1898. j In order to comply with Section 3801 of the Political Code, the following rules and regulations are prescribed by the State Board of Equalization for the government of County Commissioners when equalizing and Assessors when assessing taxable property in the several counties of the state: RULE I. The object of the law in the matter of assessing and collecting the public revenue, is to carry into eiifect the Constitutional and Statutory requirements; that all property in the State not exempt, under the laws of the United States, shall be taxed in proportion to , its value, excepting from taxation the property of the United States, the State, counties, cities, towns, school districts, munici- pal corporations, public libraries and such other property as is used exclusively for agricultural and horticultural societies, for educational purposes; places for actual religious worship, hospitals . and places of burial, not used or held for private or corporate profit, and institutions of purely public charity, provided no more land than is necessary for such purposes shall be exempt; also all mines and mining claims, both placer and rock in place, con- taining or bearing gold, silver, copper, lead, coal, or other valu- able mineral deposits prior to the purchase thereof from the United States. To this end the law requires the assessment of all taxable property in the State to be first completed before the rate of county taxation is determined. The assessment of the property must be commenced immedi- ately after the first Monday in March, and completed on or be- 4 RULES AND REGULATIONS iore the second Monday in July of each year; and the equaUzation by the County Boards of Equalization must be commenced on the third Monday of July and completed on or before the second Monday in August of each year. (Sees. 3700-3780, Political Code.) All taxable property must be assessed at its full cash value. (Sec, 3690, Political Code.) The terms "value" and "full cash value" mean the amount at which the property would be taken in payment of a just debt due from a solvent debtor. (Sec. 3680, Political Code.) RULE II. Assessors are hereby instructed to use the form of assessment list adopted and furnished by the State Board of Equaliza- tion, or a form substantially the same; and in all cases to require a list or statement to be sworn to and sigiled by the person as- sessed, which must be carefully preserved in the office of the as- sessor. The assessor may fill out the statement at the time he pre- sents it, or he may deliver it to the person and require him, within an appointed time, to return the same to him properly filled out. The Assessor shall immediately deliver, in person or by mail, a copy of his or her statement showing corrections, if any, made by him. (Sees. 3701-3702, Political Code.) RULE III. In addition to the affidavit required by Section 3702 of the Political Code, mentioned in Rule II, and before taking from any person the statement required by Section 3701, the Assessor must administer to such person an oath that he or she will true answers make to all questions put to him or her concerning all matters contained in said last mentioned section. In this connection attention is called to the positive provisions of Section 3701, as to the statement to be made by taxpayers. The object of the section is to obtain a complete and detailed list of the taxpayer's taxable property owned by him or her on the first Mon- day of March of each vear. BOARD OP EQUALIZATION. 5 RULE IV. Assessors must not assess the property of any person in "gross" or "bulk" but, after demanding and receiving from each person to be assessed a specific statement, setting forth in detail and in accordance with the assessment lists, the quantity, num- ber or kind of each class of property assessed; the Assessor will then fix the proper values at which the several properties are to be assessed, according to his own judgment, pursuant to the pro- visions of law and these rules. If the person being assessed makes any statement of the value of the property, or any portion thereof, whether under oath or not, the Assessor should consider the same, but will not be bound thereby, but must assess such property at its ""full cash value." (Sec. 3690, Political Code.) RULE V. Assessors must not accept returns or statements from agents for persons when the persons themselves can be found in the county. RULE VI. Attention is called to Section 3705, where the Assessor is re- quired to make a valuation of the property of persons neglecting •or refusing to give, under oath, the statement provided for in Sec- tions 3701-3703. Where the statement is neglected or refvised, -or the person neglects or refuses to comply with the other require- ments of the law, or the requirements of the Assessor thereunder, the Assessor must be careful to note on the assessment book, oppo- site the name of the party assessed, the refusal thus: "Refused to be sworn." "Refused to give statement as to property." "Neg- lected to furnish statement as to property. (Sec. 3705, Political Code.) RULE VII. Assessors should be careful in exercising their duties under Sections 3710-3711, in order that assessments made thereimder will 6 RULES AND REGULATIONS be legal. The same rule applies to partnership. The rule is to give the entire name of each partner in the firm thus: "John Doe and Richard Roe," co-partners, doing business under the firm name of John Doe & Co." An assessment under the latter name alone,, without naming the individual members, would not bind the firm. RULE VIII. Care should be taken when assessing unsecured solvent cred- its, to bear in mind that it is the intention of the law to assess all unsecured credits due and owing to the party assessed, from or by all residents of the State. In making deductions from the ag- gregate amount of such credits, allowance must be made for such unsecured debts as the assessed party owes to bona fide residents of this State. The only deductions allowable on ac- count of such debts of the party, are debts which are not secured' by deed of trust, mortgage or other lien on real or personal! property. RULE IX. In assessing solvent credits, whether the same are secured by a deed of trust, mortgage or other lien, or other obligations, or are unsecured, they are to be valued only by the actual value of the security; that is to say, if the face value of the mortgage is greater than the value of the property, the mortgage should be assessed at no greater value than the property; and so in the case of all other credits secured on either real or personal prop- erty, the credit should be assessed at no greater value than the security. In the case of unsecured credits, the same should be assessed at their real value, which may, in many instances, be less than the par or face value. RULE X. Care should be taken so as not to assess money loaned out or money loaned to or deposited with banks or banking associations as money, but such property must be assessed to the owners or holders as "solvent debts." In assessing any credits due any per- BOARD OF EQUALIZATION. 7 son, association, or ■ corporation, the present cash value of the credit is to be ascertained as near as may be, by taking into consider- ation the nature of the indebtedness ; the ability of the debtor to pay the same, in whole or in part; the character and sufficiency of the security, if any there be; the times when payable, and such other circumstances as have a present and direct effect upon the value. RULE XL An indebtedness within the meaning of Section 3701 of the Po- litical Code does not include an acknowledgement of indebtedness not founded oii consideration, and no such acknowledgement made for the purpose of being so deducted, must or can be considered a debt within the intent of said section, and no person is entitled to a deduction on account of an obligation of any kind given to an insurance company for the premium of insurance, nor on account of any tmpaid subscription to any institution or society, nor on account of a subscription to or installment payable on the capital stock of any company or corporation ; nor on account of the liability of any person or persons as surety for another; and no deduction must be made in any case unless: 1. Tlie party claiming such .deduction discloses to the Asses- sor, imder oath, the name or names of the persons to whom such party is indebted; 2. The amount of such indebtedness to each; 3. That such indebtedness is not barred by the statute of limita- tions. RULE XIL What is known as a deposit of money, gold dust or other val- uables, in a bank or with a bankef or other person — that is to say, a 'deposit by the terms of which the custodian of the deposit has no right to the use of the same, but is merely charged with the duty of safely keeping it for the benefit of the depositor — is not to be assessed to such bank, banker, or other person, but such deposit must be assessed to the depositor. In case such depositor resides in another county, the Aesessor must in that case file the 8 RULES AND REGULATIONS affidavit or statement in his office, and transmit a copy of the same to the Assessor of the .county in which the residence of the depositor is therein shown. In case the depositor is absent from the State, the deposit must be assessed to the bank, banker or other person in whose keeping the same remains, taking care to specify in the assessment that said bank, banker or other person is assessed for such deposit, as the agent of the owner, naming such owner. RULE XIII. Banking corporations and all banks and banking firms or asso- ciations, or persons doing a banking business, must be assessed for the full amount of money, gold dust, or bullion on hand, (ex- cept the special deposits mentioned in Rule No. XI); and, in addition thereto, under the head of solvent credits, all their loans and all solvent credits due them which are secured by mortgage or other lien upon real or personal property, must be assessed at the full cash value thereof, without any deduction on account of any indebtedness, and notwithstanding the creditors (or depos- itors as they are commonly called) of such corporations, banks,, banking firms, associations, pr persons who may have been, or are liable to be, assessed for their said deposits or credits, as solvent credit due them. RULE XIV. With repect to such solvent credits as are not secured in the manner above stated in Rule XIII, the excess of the same over the amount of the same party's indebtedness which is not secured in the manner above stated, only, is to be assessed. RULE XV. The term "solvent credits" include all debts owing by any such institutions or persons to their creditors or depositors, on account of moneys or securities loaned to or deposited with them, (excepting the special deposits prescribed in Rule No. XI) and such debts must be severally assessed at their full cash value as "solvent credits,?' BOARD OF EQUALIZATION. 9 to such creditors or depositors, or such other persons as at the time •of assessment may be the owners or holders of such credits, subject to the deductions allowed on account of unseciired indebtedness, as required in Rule No. X. State, county, city, or other municipal •or public bonds, bonds of any firm, corporation or person, warrants or scrip, are to be assessed as unsecured, solvent credits, from which the assessed party may deduct his unsecured debts due resi- dents of the State. ' RULE XVI. The situs of personal property owned by a non-resident, but em- ployed in business in this State, and under the control and man- ageiiient of an agent, is at the residence of such agent for the pur- pose of taxation. Money, bonds, notes and mortgages under the control and man- agement of a resident agent authorized to use the same in the loan and investment business, is taxable where the agent resides and where such property is employed; and it is the duty of such agent to list such property either in his name as agent or the name of his principal, and upon his refusal so to do, it is the duty of the Assessor to list the same. RULE XVIL The July statement required for the State Board of Equaliza- tion by Section 3729, Political Code, must be furnished in all cases, and the forms furnished by the Board for that purpose must be fully tilled up. Great importance is attached to this report, from the fact that the Board is enabled to gather therefrom, by a comparison ■of all the reports, a correct estimate of the valuations made by the Assessors upon the several classes of property in the State, and •determine therefrom what per centum to add to or deduct from the asssessed value of the same. RULE XVIIL What is meant by "improvements" on land or lots, includes lots ploughed or tilled, fenced, trees planted thereon, structures erected 16 RULES AND REGULATIONS thereon, or fixtures attached thereto. Care must be taken to give each lot, whether improved or unimproved, a separate valuation. The provision in Section 3680, Political Code, does not contemplate any other rule. RULE XIX. To the end that all property, situated in each County, may be designated on the Assessment Lists, and in the Assessment Books, in the city, town, school district, road district, or other revenue district in which it is situated, the County Commissioners are hereby required to cause the boundaries of each and all of such districts above mentioned to be ascertained and entered of record in their said office for the use of the Assessor and the State Board of Equali- zation. Subdivision 4, Section 3701. RULE XX. It is the duty of the Assessor to make a careful examination of each assessment Hst handed in by his deputies, and supervise the valuations thereon; and alter, correct or change them according to his own judgment. Where the labor of assessing is apportioned in districts to different deputies, great inequalities between the several districts are apt to result; unless the Assessor personally attends to fixing the valuations and making them in proportion throughout the county, according to the true values of the lands or other properties assessed. RULE XXI. In case any property is found which has been sold to the County for delinquent taxes, pursuant to Section 3923, such property must be assessed; not to the County, but in the same manner as if it had not been so purchased. In case the time of redemption has expired the property, being the property of the County, must not be assessed. RULE XXII. The Board of County Commissioners of each county should author- ize the Assessor to appoint deputies as provided by law to enable BOARD OP EQUALIZATION. 11 him to complete the assessment and perform such other duties pre- scribed in the revenue law within the prescribed time. The fact that the Assessor has a good bond on file, or neglects to perform his duties, or is not diligent in the performance of them, is not suffi- cient to warrant the commissioners in refusing to authorize the appointment of a sufficient number of deputies, but it is their duty to render all aid in their power in the matter of the assessment of property subject to taxation, and hold the Assessor liable on his "bond for failure to render his personal services to the county in that hehalf. The measure of damages would be the amount paid out for the services of a deputy, or, in case the work was negligently per- formed, the amoimt of taxes lost to the county thereby. RULE XXIII. It is the duty of the Assessor to transmit to this Board, as soon as practicable, a statement of all mortgages, deeds of trust, contracts and other obligations by which any debt is secured, which embrace or relate to lands situate in more than one county, in order to enable the Board to apportion the value of such property in €ach county and transmit such apportionment tO' the Assessor of such county, as required by Section 3787, such statement, in addition to a full description of the names, dates, etc., of the instrument, sHall contain all information the Assessor may have in relation to the character and value of the lands described in such instrument. Sec- tion 3786. RULE XXIV. In assessing a mortgage, deed of trust, contract or other obliga- tion by which a debt is secured, the mortgaged property must be particularly described. The better way is to adopt the same descrip- tion by which the land is assessed. In all cases a mortgage or other security must be assessed to the owner thereof in the county where he resides. RULE XXV. In case the Assessor shall discover real or personal property in the possession of a person who has become the owner thereof by 12 RULES AND REGULATIONS purchase since twelve o'clock noon, of the first Monday in March^ such property must not be assessed to such purchaser, but assessed to the party who was the owner of the same on the first Mionday o| March at twelve o'clock noon. Notwithstanding the fact that th: owner cannot be found on whom to make a demand for the assess ment list, such property must be assessed to him. RULE XXVI. Live stock driven into any county from without the State and turned at large for grazing purposes therein, may be listed and assessed at any time during the year in such county. This rule must not be construed to prevent assessors from listing; and assessing live stock that graze continuously in one county,, while the owners thereof have their headquarters in another county.-. By order of the State Board of Equalization. ROBT. B. SMITH, President. T. E. COLLINS, Vice President T. W. POINDEXTER, Jr. C. B. NOLAN. T. S. HOGAN, Secretary. DAVID MARKS, Clerk.