STATE CONSTITUTIONS ON TAXATION

The varying restrictions imposed by State constitutions upon the legislative power of taxation are shown in the following abstract. All of the State constitutions contain provisions guaranteeing due process of law in the protection of property. In some of the older States, as in some of the New England States and New York, there is no limitation upon the legislative power of taxation except in this general guaranty in the Bill of Rights for due process of law.

Many of the State constitutions contain the requirement. of equality and uniformity in taxation, this being limited in some cases to the same class of subjects within the territorial limits of the authority levying the tax. It will be observed also that there is a material difference in the constitutions in the restrictions upon the legislative power of exempting from taxation. In some States legislative exemptions are prohibited and all property made subject to taxation except as specifically exempted in the constitution, while in others the legislature is authorized to make certain specific exemptions.

It will be observed that some of the constitutions are not framed upon the theory that the State legislative power is supreme in taxation except as limited by the State constitution, as they contain specific grants of power to levy certain forms of taxes, as poll taxes, license and inheritance taxes; and in some cases, as in Illinois and Minnesota, the power to make special assessments for local improvements is specifically given. These latter provisions however seem to have been made in view of prior decisions holding that such methods of taxation were inconsistent with the

constitutional requirement of equality and uniformity in

taxation.

The more recent constitutions, as in Virginia, are notable for a more detailed and specific regulation of the exercise of the taxing power. On the other hand, there is a strong agitation favoring local option in taxation, that is, separating the sources of State and municipal revenue, and allowing municipalities to determine for themselves the subjects of taxation. This would involve the repeal of provisions in State constitutions which restrict the power of the legislature to regulate assessments and taxation, and require taxation of all property in a uniform manner by a uniform rule throughout the State.1 Many of the constitutions contain express limitations upon the rates of State and municipal taxation, which have not been included in this abstract, the purpose being to include only the provisions which are illustrative of the policy of the State in restricting the taxing power.

ALABAMA.

(Constitution went into effect November 28, 1901.)

SEC. 91. The legislature shall not tax the property, real or personal, of the State, counties or other municipal corporations, or cemeteries; nor lots in incorporated cities or towns, or within one mile of any city

1 The League of American Municipalities at its fourth annual convention held at Charleston, S. C., December 12-15, 1900, unanimously adopted the following resolutions:

Resolved, That all provisions in State constitutions should be abolished which restrict the power of the legislatures to regulate assessment and taxation.

"Resolved, That so much State revenue, as may be required in excess of that derived from specific taxes should be apportioned to and paid by the counties or towns in proportion to county or town revenue.

"Resolved, That every county or town and every city be granted the right to regulate the assesment and taxation of property at its discretion, provided any increase or reduction of assessment must be uniform throughout such county, town or city, and not made on the ground of ownership."

or town to the extent of one acre, nor lots one mile or more distant from such cities or towns to the extent of five acres, with the buildings thereon, when same are used exclusively for religious worship, for schools, or for purposes purely charitable.

SEC. 92. The legislature shall by law prescribe such rules and regulations as may be necessary to ascertain the value of real and personal property exempted from sale under legal process by this constitution, and to secure the same to the claimant thereof as selected.

Article VIII, Sec. 178. (The payment of a poll tax is made a condition precedent of the right to vote. This poll tax, by Section 194, is to be $1.50 upon each male inhabitant over the age of twenty-one and under the age of forty-five years, who was not, when the constitution was adopted, exempt by law, but the legislature is authorized to increase the maximum age to not more than sixty years. No legal process is allowed for the collection of the poll tax, and any payment of the poll tax by another or the advancement of money for that purpose is made to constitute bribery. Under Section 259, the proceeds of all the poll taxes are applied to the support of the public schools.)

ART. XI, SEC. 211. All taxes levied on.property in this State shall be assessed in exact proportion to the value of such property, but no tax shall be assessed upon any debt for rent or hire of real or personal property, while owned by the landlord or hired during the current year of such rental or hire, if such real or personal property be assessed at its full value.

SEC. 212. The power to levy taxes shall not be delegated to individuals or private corporations or associations. (Under Sections 214, 215 and 216 the rates of tax in the State, counties and cities are specifically limited.)

SEC. 217. The property of private corporations, associations and individuals of this State shall forever be taxed at the same rate; provided, this section shall not apply to institutions devoted exclusively to religious, educational or charitable purposes.

SEC. 218. The legislature shall not have the power to require counties or other municipal corporations to pay any charges which are now payable out of the State treasury.

Section 219. (Authorizes the legislature to levy a collateral inheritance tax of not more than two and one-half per cent on all estates, real and personal, in the State, transferred by will or the intestate laws of the State.)

Art. XIV, Sec. 269. (A special county tax, specifically limited in rate, is authorized for the support of public schools.)

ARKANSAS.

ART. XVI, SEC. 5. All property subject to taxation shall be taxed according to its value, that value to be ascertained in such manner as the General Assembly shall direct, making the same equal and uniform throughout the State. No one species of property from which a tax may be collected shall be taxed higher than another species of property of equal value, provided the general assembly shall have power from time to time to tax hawkers, peddlers, ferries, exhibitions and privileges in such manuer as may be deemed proper. Provided, further, that the following property shall be exempt from taxation: Public property used exclusively for public purposes; churches as such; cemeteries used exclusively as such; school buildings and apparatus, libraries and grounds used exclusively for school purposes and buildings and grounds and material used exclusively for public charity.

SEC. 6. All laws exempting property from taxation other than as provided in this constitution shall be void.

SEC. 7. The power to tax corporations and corporate property shall not be surrendered or suspended by any contract or grant to which the State may be a party.

SEC. 8. The General Assembly shall not have power to levy State taxes for any one year to exceed in the aggregate one per cent of the assessed valuation.

SEC. 11. No tax shall be levied except in pursuance of law, and every law imposing a tax shall state distinctly the object of the same; and no moneys arising from a tax levied for one purpose shall be used for any other purpose.

SEC. 13. Any citizen of any county, city or town may institute suit in behalf of himself and all others interested, to protect the inhabitants thereof against the enforcement of any illegal exactions whatever.

CALIFORNIA.

Constitution, adopted 1879. SECTION 1. All property in the State not exempt under the laws of the United States, shall be taxed in proportion to its value, to be ascertained as provided by law. The word "property," as used in this article and section, is hereby declared to include moneys, credits, bonds, stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership. The legislature may provide, except in case of credits secured by mortgage or trust deed, for a deduction from credits of debts due to bona fide residents of this State. (Amendment ratified November 6,

ART. XIII, SEC. 1 The following property is exempted from taxation: Growing crops, property used exclusively for public schools, and such as may belong to the United States, this State, or to any county or municipal corporation within this State.

SEC. 2. Land, and the improvements thereon, shall be separately assessed. Cultivated and uncultivated land, of the same quality, and similarly situated, shall be assessed at the same value.

SEC. 4. A mortgage, deed of trust, contract, or other obligation by which a debt is secured, shall, for the purposes of assessment and taxation, be deemed and treated as an interest in the property affected thereby. Except as to rail road and other quasi public corporations, in case of debt so secured, the value of the property affected by such mortgage, deed of trust, contract or obligation, less the value of such security, shall be assessed and taxed to the owner of the property, and the value of such security shall be assessed and taxed to the owner thereof in the county, city or district in which the property affected thereby is situate. The taxes so levied shall be a lien upon the property and security, and may be paid by either party to such security; if paid by the owner of the security, the tax so levied upon the property affected thereby shall become a part of the debt so secured; if the owner of the property shall pay the tax so levied on such security, it shall constitute a payment thereon, and to the extent of such payment, a full discharge thereof: Provided, that if any such security or indebtedness shall be paid by any such debtor or debtors, after assessment and before the tax levy, the amount of such levy may likewise be retained by such debtor or debtors, and shall be computed according to the tax levy for the preceding year.*

SEC. 5. Every contract hereafter made, by which a debtor is obligated to pay any tax or assessment on money loaned, or on any mortgage, deed of trust or other lien, shall, as to any interest specified therein, and as to such tax or assessment, be null and void.

SEC. 6. The power of taxation shall never be surrendered or suspended by any grant or contract to which the State shall be a party. SEC. 7. The legislature shall have the power to provide by law for the payment of all taxes on real property by installments.

SEC. 8. The legislature shall by law require each taxpayer in this State to make and deliver to the county assessor, annually, a statement, under oath, setting forth specifically all the real and personal property owned by such taxpayer, or in his possession or under his control, at twelve o'clock meridian on the first Monday of March.

SEC. 10. (Provides for the assessment of railroads, road-bed, tracks and rolling stock by the State Board "at the actual value," and appor

* See supra, § 455.