The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-04-30

only personal property, or only real pro
perty, but "all property, both real and per
sonal, shall be taxed in proportion TO n,
value, to be asceriained as prescribed h,
law. No one species OF property from
which tax may be collected shall be taxed
higher than any other species Of properi, (,
OF equal value"
Giving TO the language Of this section n.
proper Specification, and TO each member OF
the sentence, and TO each sentence. tbeII
lust influence and bearing in conveying tbe
meaning OF the whole, 1t was tbe intention
10 require that taxation should be on the
ga oot0rem principle, and that IL should be
equal and uniform; andit was no purpose
OF The frnmcrs OF The Constitution by this
section to restrict the Legislature in the Sc.
ieciion OF the subjects Of taxation, or ia
diyest 1t OF an important element Of soye.
reIgnty by an iuflexible Inhibition OF ex-
emptlng, in any case, property from taxa.
non. The same rule OF taxation prescribed
ior the State Is by this section prescribed for
county or corporate bodies. City councils,
Tor the promotion OF the growth and well
iare OF the city, regard II as important to
introduce certain manufacturing or other
INDUSTRIAL ENTERPRISES
within the limits OF the city; and 10 en-.
c0uruge'ther introduction stipulate on be.
half OF the city that the. property of those
who engage. In thesentef1rises within. the
limits OF the city shall not be liablegto
taxation for series OF years. Would
such an exemption, whilst it tends TO in
crease the sources Of revenue TO the State,
and to build up our cities, and to advance
the prosperity OF the rural districts, by fur.
nishing them marts for the productions OF
the soil, be forbidden by the Constitution {.
Again, for the growth and prosperity OF
our cities, and the extension OF their trade
and commerce, capital is rtquired; and to
obtain II, Il is necessary to issue their bonds
and offer them IN the markets, and in order
| 10 increase the value Of thei: bonds and 10
render them more salable, would il be con.
tended that it i forbidden by this section
OF the Constitution to make. by city ordi.
nance, such bonds exempt from municipal
/ taxation?
The Constitution OF 1850 contains the
same provision, except as to county and
corporate bodies, and other matters which
do not affect this question. The language
is : "Taxation shall be equal and uniform
throughout the Commonwealth, and all
property, other than slaves, shall be taxed
! in proportion TO IFS value, which shall be
scrbed by law"
| Under that Constitution
EXEMPTIONS OF PROPERTY FROM TAXATION
were frequently made, and am not aware
| that the cOnstitulionality Of those eXemp-
/ tions have ever been even questioned, and
they were sustained by judicial construc'
tion before that provision OF the Conslitu'
ton OF 1850 was copied into the present
I Constitution OF the State. and must be held
| to have been adopted by the trainers OF the
present Constitution. a. it bad been under
stood by the unquestioned legislative con-
struction and action, and the usage OF the
country, and by judicial construction, be-
fore it was engrafted into the present Con-
stitution. The Legislature by the act OF
-, 1856, exempted the property OF the
Alexandria and Orange Railroad Company
in the city OF Alexandria from taxation,
and in Alexandria and Orange Railroad
Company IS. City of Alexandria u Graft,
page l7G) this Court helG that distinguish
ed jurist Judge Joynes delivering the opin-
ion-that whilst the property Of the railroad
company was exempt from taxation by the
State, it was not exempt from taxation by the
city corporation-ihe Court constituting the
exemption by the act OF the General Assem-
bly as limited to taxation by the State-0ul
conclusion Is that the inherent power OF the
Legislature, which is ap important element
OF sovereignty to exempt property from
taxation when. in the wise discretion OF the
Legislature, such exemption is deemed TO be
FOR THE BENEFIT OF THE STATE.
is not taken away, or its exercise forbidden
by the section OF the Constitution under
consideration.
Nor is it taken away or forbidden by sec-
ton 3 OF the same article OF the Constitu-
ton. That article does not forbid but au-
Ihorizes exemptions by the Legislature in
certain specified cases, without fOrbidding
| it in Others. The language is: " The Lee
eisIature may exempt all property usede x
cIusiyely for State, county, municipal. be-
nevolent, and charitable purposes" III 1t
had intended to forbid its eXempting other
properiy, it would have been easy 10 add
| the words 'but no other" And we think
If its purpose had been to deprive the Le-
gislature OF 4 power, the exercise OF which
! in eases tbnt might arise might be so beDe-
| fetal 10 tie State, and the inhibition ol
which might be so hurtful, the above words,
or their equivalent, would have been added
IT WAS CONTENDED
State bonds, in this case, from taxation, as
those bonds were issued by the State, the
principal payable in forty years, bearing i'll
terest for ten years at the rate OF per cent.
interest, for twenty years ut the rate OF
per cent. interest, and for the remaining ten
years at ) per cent. interest, in exchange FOL
per cent. bonds Of the State then outstand'
| ing, which would be saving OF millions OF
Il IL, al fdf hf
benefit OF the State, and is therefore within
the express authority given by this third
section to exempt. Whilst that may be so,
and there is much reason for IL, the Court
deems it unnecessary to put it on that
ground. The Constitution nowhere, be.
| leve, expressly confers on the Legislature
the power Of taxation, because the power
is inherent in the Legislature, and Is not de-
pendent on any express power from the
Constitution. In like manner the general
power of eXemptiDg property from taxa
ton is inherent in the Legislature, being
incident TO the taxing power, and may be
exercised without any express power from
the Constitution, il not forbidden. There
fore the giving power to the Legislature, IN
certain cases, to exempt from taxation can
not take from it its inherent power OF ex-
emption in other cases, which Is not for'
hidden by the Constitution.
In this case the exemption is OF tax on
the tonds OF the State, which were issued
under
A CONTRACT WITH ITS CREDITORS,
upon an adjustment OF an antecedent debt,
by which the State is RENTED one half the
interest accruing for ten years. one third
for twenty years, and one-tlfth for ten
wears, In consideration OF which the State
agreed that the bonds which she issued, with
that abatement OF interest, should be non
taxable. The exemption is by virtue OF a
contract made by the State with her eredl-
tors, which was deemed by the Legislature