The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1874-03-19
REVENUE AND TAXATION.

SECTION /. The General Assembly shall provide
for raising revenue to defray the expenses of the
State for each year, including a sum sufficient 10
pay the Interest on the State debt with so much at
least of the principal thereof as is provided for in
article of this Constitution
''SEc. 2. The General Assembly shall never levy
poll tax for county or State purposes
''SEo. 8. Laws shall be passed taxing by equita-
Bile and uniform rules al real and personal property
so that all property shall bear an equal share of the
burdens of taxation according to its true value in
money, but providing against double taxation.
''SEc. 4. The General Assembly may provide by
law Tor exemption from taxation of all burial
grounds, public school houses, houses used exclu-
sively for public worship, institutions of purely
public charity, public libraries, public property
used exclusively for any public purpose, and per-
sonal property to an amount not exceeding two
hundred dollars for each individual may, by geper-
al laws, be exempted from taxation; but all such
laws shall be subject to alteration repeal and the
value OF all property so exempted shall, from time
to time, be ascerained and published as may be d-
rected by law.
'.SEc. 3. The General Assembly may impose tax
es by license, excise or otherwise, and also provide
by equitable rules for taxing all income derived
from investments, when for any cause whatever the
principal from which such income is derived can
not be taxed.
"SEc. O. Banks now existing or hereafter created
and all bankers, shall be taxed by such equitable
rules, based upon capital employed and amount of
business done by them, as will require them to
share equally with other business interests in the
burdens OF taxation.
''SEC. 7. No tax shall be levied except in pursu-
ance of law, and every law shall state distinctly the
object of the same, to which only il shall be applied
'SEo. s. The State shall never contract any debt
for purposes of internal improvement
'SEc. 9. The General Assembly may, throughout
the State or in any county counties thereof prO-
vide by law to regulate, restrain, or prohibit by
special tax, assessment, or otherwise the keeping
harboring, and running at large of dogs"
SPEECH OF MR. SMITH.
Mr.. Smith, of Highland, Chairman of the Com
a.
tee, after consideration, had decided to make no
radical change in the existing system. Up to 1881
the Legislature had full jurisdiction over the whole
question of taxation, but in 1866 law had been
adopted by which all classes CT property in the
State were brought under system of uniform taxa
ton. This method operated so advantageously
that at the Constitutional Convention of 1851 the
substantial principles of this bill were incorporated
into the organic law, and consequently formed the
basis of our present system of taxation. The un-
derlying principle of the system was, as it should
but that all classes of it bear equal share of the
public burden and furnish q pro ratG for the pub
lie expenditure.
Under this principle and system of taxation our
State taxes have since 1S5 swelled from Sg 600 OOO
to the of SIS 900 0O0 the system has proved en-
tirey adequate without any excessive pro rata for
the growing requirements of the State and that II
has been no burden upon any special interest or the
general prosperity of the State Is evidenced that the
aggregate value of taxable property in the State
then but 500, 900, is appraised at ST. 5OO
,O00 The fair inference therefore was that the
general provisions of the system adopted in the or
ganic law OF 1851 had worked successfully and
would do to continue UNDER
The first modification of the article of the present
constitution win be found in the third section. 1t
differs mainly from the present one in construction
and in the requirement that uniform and equitable
rules, instead of rule, shall be adopted IN the tax
alton of property in the State. Whether the Ian
guage of the section would admit, as some mem
bers of the committee were of opinion, of q con-
struction allowing the Legislature without restric
ton to classify property they are permitted in
Pennsylvania, might be questioned. Such con-
s.ructiOn has been entertained by some members Of
the committee, and it believed that the Legis-
lature would have the power to classify property,
and apply to that classification uniform laws of tax
alton, instead of single, uniform rule for the tax
alton of all. How far this latitude of legislation
might be matter of safe policy and wisdom might
be question, and is submitted to the decision of
the people in this Constitution.
As TO Section of the article, many systems as to
the exemption OF different kinds of property are
discussed. This section confers upon the Legisla-
ure only the power to exempt the property specified
in the section, but does not exempt it. The nu-
merous petitions and applications made to this
Convention for nOn-exemption of any property
from taxation were not founded upon thorough
discussion of this question with the people, they
hold the power through the General Assembly to, at
any time, tax the class ofproperty named and this
method of remedying exemption having been sub
mitted in 1881, and having been then approved, it
was deemed best not to alter it.
As TO this class of property the amount exempted
is hot great. The statistics show that the value of
the realty of the Church property in the State does
not exceed Sc, 900 OO0-this not including improve
ments, of cOurse-whe the total value of the prop
erty of charitable institutions, including improve
ments, is but s. 0O0,O0. With these facts in view,
the committee thought it best to leave the question
of exemption or taxation where the people could
control it-with the Legislature. If the people see
t to carry this burden having the power to relieve
themselves of it. no injustice is done them.
As to Section of the proposed article, the Cen
Aaaarnhlaa of OhiO haxy
fused to enter into this class of taxation, thinking
themselves debarred by Section Of the ConstitU-
ton of 1885, and hence have declined to legslate.
The committee have made the power to exercise
this class of taxation permissve that the Legis
lature, although at present there may not be nee
essty for enforcing it, occasion arises for its ex
ercise, as it may, may have the proper power def
1t Is endeavored by the second clause of the sec
ton TO reach that class of property from which
income is derived, and which ought to be taxed,
but which is at present exempt and beyond the
power of the State to tax directly; such property
bonds investments in the securities of the United
States, and those OF other States. Although we
have attempted to reach this class of property by
law the effort was failure, but il would be reached
by the method here propOsed-the taxation of the
income derived from il.
By Section 6 it is proposed to put the banks of
the State upon the basis of other property for the
purposes of taxation. The two methods on which
Il was required that the rules of taxation should be
based, viz: Upon capital employed, and the amount
of business done, would enable scheme OF taXa-
ton to be based which, in the language of the sec
ton will require these Institutions to share equally
with other business interests in the burdens of tax
ton. These requirements, upon which is based
taxation, would enable the Legislature TO compel
quarterly exhibits OF statements from the banks and
bankers, upon the showing of which an exact
knowledge of business and capital, upon which tax
alton could be levied, would be acquired.
The purpose of the last section is not crusade
against dogs, as l understand it. | believe the
members of the committee did not intend thereby
to wage a war against dogs to the death. Its OBJ.
ect is simply to protect the wool interests Of the
State By this tax, either per capita or police, q
sum may be raised and paid into the treasury which
will serve to indemnify the owners of sheep destroy
ed by dogs The labor of love of throwing the
shield of protection over the canine race In Ohio
Mr. Smith left to his friend, General Burns and the
conducting Of the war against them TO General Ew-
Ing. [IaIghterl