The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-13
THE DISSENTING OPINION.
Two Judges Who Thought Tax Board
Acted with Authority.


The dissenting opinion, written by Justice
Howard, and concurred in by Justice
Monks after stating that the tax law gave
the State Board of Tax Commissioners am
pie authority to prescribe the forms of prop
erty schedules, with view of securing the
| assessment of all property, says that the
Constitution of the State docs not assume
to grant authority to the Legislature to tax
property, but rather assumes that the
Legislature has power to tax all property.
What the Constitution does is to command
that the General Assembly shall provide
| by law for uniform and equal rate of as
sessment and taxation And this command,
as it seems to me, the General Assembly
has complied with"
| Continuing, the opinion says: However it
| may be in other jurisdictions, having con-
| titutions different from ours, it must be
| held under our Constitution that the Legis-
| lature must do, as it has in fact DONE Sc
| lect as the subjects of its taxation all prop
| erty, both real and personal, save that only
| which the Constitution itself, for reasons OF
| public policy, provides may be exempted.
| Other apparent exceptions found in the
| statute, and to which counsel refer with so
much confidence as showing the exercise
| by the Legislature of the right to select
| property for and exempt 1t from taxation,
are IN truth but provisions tof avol4g
| tax property not within the jurisdiction Of
| the State.
| though mandatory, is not self-eXecuting,
| and requires that the Legislature should
| provide for the assessment and taxation of
| all property. and should prescribe rules and
regulations to secure just valuation for
that purpose. This is conceded, but 1t is
manifest from the statutes that the Legis-
lature has performed this duty in relation
to the property under consideration as well
as all other property.
ture has literally obeyed the mandate of the
Constitution by selecting for taxation all
property within the jurisdiction of this
ton Of the same law it has made provision
for all the exemptions authorized by the
Constitution, nanely-of property used for
municipal, educational, literary, scientific or
charitable purposes
property to be exempted the General As
senlbly has, by necessary implication, for
hidden the exemption OF any other property
from taxation.
.ALL PROPERTY" TO BE ASSESSED.
The opinion then maintains that the Leg
islature has gone further than the two Sec
lions of the law referred to. 1t was pro-
vided full set of fiscal officers beside the
State Board of Tax Commissioners, as
signing prescribed duties to each of the
taxing officers and providing one standard
of valuation for all property-that of its
true cash value. Particular stress is laid
by the opinion on the requirement of Sec
ton 4S7 the tax law that ail property
shall be assessed. Continuing, the opinion
says:
sum of money at the termination of the life
insured. The party owning and holding
such policy, whether on the life of an
other or on his own life, has valuable
interest in it, which he may assign, either
absolutely or by way of security, and it is
assignable like any. other chose in action.
Nor can it be said that life in
surance policy is rot claim or demand
for the reason that no action may be had
upon it before the maturity of the policy.
money can be realized from life insurance
policy until It's IL maturity or the death Of
be due for twenty years, or until
the death of the maker, yet no one would
say that it was therefore without value.
And even If a policy could not be sold
to pay the delinquent tax assessed upon
it, as contended, still that would not be
reason to show that 1t is not taxable. In
Section 4S of the tax law, we have seen,
provision is made for the assessment at it's
actual value OF property that has no mar
ket value.
''Then Section of the law provision is
made for the taxation of goods, chat
tells and effects belonging to inhabitants of
this State situate
1T is with these alone that we are con-
cerned II the companies are solvent, it is
too clear for argument that such policies
have an absolute present money value.
Whether paid up or partly paid up they are
company is pledged for their payment.
Nor is it any reason why this property
should not be taxed that it was not hereto
fore returned for taxation. The Legislature
as we have seen, has provided that all prop
erty not expressly exempted under author
ity of the Constitution shall be taxed. 1t
has provided, moreover, that all personal
property of the class to which this belongs
shall be taxed.
New. forms of property are constantly
presenting themselves, and because taxing
officers have not had their attention drawn
hxyl
10 means follows that such property should
not be taxed as soon as observed or dscov-
BOARD TO MAKE THE RULES.
Speaking of the failure of the law to pro-
vide method for ascertainng the value of
insurance policies, the opinion says that by
Clause of Section 12O of the tax law the
Board Of Tax Commissioners Is not only
given power to make needed rules and reg
uiations, but it becomes a duty the board
must perform. Says the opinion:
The rules and regulations for the assess
m I mere IN controversy are quite in har-
mony with the whole scheme of our own
property.
THE Legislature has simply provided in
obedience to the Constitution, that all prop
erty not expressly exempted shall be taxed
that 1t shall be assessed at its true cash
snail be assessed by different asses SOS and
assessing boards and that the State Board
OF Tax commissioners shall have general
supervision over the whole subject of taxa
ton, and shall frame such rules and reg
ulations as may aid in carrying out the pur-
poses of tho law. Certainly, therefore, the
board might provide rules by which asses-
sors should be guided in determining the
true cash value of life insurance policies
Such rules do not, counsel intimate de-
prive tire taxpayer of the right, as in other
cases, of first returning and valuing his
policy at what he believes to be its true
cash value; neither do they relieve the as
SCISSOR of his duty to assess the same prop
erty at what he believes to be such true
cash value: but the rules are a practical
guide to enable the assessor to arrive al the
framing our tax laws, namely, that this
as every other kind of property, should be
assessed at its true cash value" In con-
clusion, Justice Howard says: 1T is con-
coded that paid-up and nonforfetable and
partly paid-up life insurance policies cunsti-
tute property 1t is conceded that the
Constitution requires all property to be
taxed; and that it is but equitable and just
to those who pay their taxes that the Leg
islature should carry into effect this provi-
sion of the Constitution. 1t is further con-
Legislature to obey this mandate Of the
Constitution, in respect to this, as all other
| property. The Legislature has assumed the
performance of this duty by the enactment
of the tax laws of the State.
If there We're a doubt whether, as to any
species of property the constitutional man
| date had been obeyed, the courts ought to
| construe the law TO be that the Legislature
had performed It's duty rather than 10 hold
| stronger than this and that it appears from
/ this OUiui0p TINT the TseQiola fure has 9ff1I.