The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1906-10-27


cording to their true value In
money.
Section four as it now stands pro-
vides that property employed In
banking shall be subject to q tax
equal to that imposed on other
property, This is only a repetition
of the requirements of Sections one
and three, as no rational person
would claim that banking cap1ta1
should be exempt from taxation.
Section seventeen as 1T now stands
is not easy to understand, but 1T was
intended by that section to relieve
from the operation of sections one
and three, above quoted, property
of the classes therein enumerateu,
SO that u gross earnings tax couln
be applied thereto instead or dlrect
taxation.
lions one and three of the present
Constitution many amendments
were from time to time added so as
to permit taxes to be imposed On
specific kinds OF property otner
wise than upon cash NalualOh
equalized throughout the state. we
have among these exceptions rail-
road gross earnings taxes; mun1c1-
pal frontage taxes; Inheritance
taxes; and the gross earnings taxes
authorized by said section seven
teen.
Several exemptions from tdAAaAoH
are also provided for, but as these
exemptions are not changed by the
proposed amendment, will make
no further reference to them
The amendment which, if adopted,
would take the place of all or the
sections and amendments above re-
ferreI to, is simple and plain. NO
provision Of the Constitution is
necessary to authorize the i'm
position of the taxes necessary for
the support of the state ana It's
various political subdivisions. me
power of taxation is inherent IN
government. This proposed amend
ment declares that this inherent
power of taxation shall never be
surrendered, suspended or con-
tracted away; that taxes shall be
imposed for public purposes ana
shall be uniform on the same class
of subjects. Should this amend
ment be adopted all property of
every kind in the state would be
subject to taxation, according to
the method the legislature saw fit
to adopt, provided only that the
tax was levied for public purpose
and was uniform on the same class
of subjects. Under this amendment
every tax law we now have on the
statute books would continue to be
valid, because under this amend
ment all limitations on the power
of the legislature would be taken
away.
The adoption of this amendment
would, as Indicated, repeal the so
called inheritance tax amendment,
and the ErOss-earnings tax amend
ment adopted in 1896 as contained
in said section seventeen, but In
their place this amendment would
give the legislature greater author
ity. Under this amendment the
power to impose inheritance taxes
would be unlimited, and any form
of gross earnings tax would be
valid. The gross earnings tax on
railroads would not be affected by
this amendment, as the Constitution
provides that it can not be changed
without vote of the people. But
with this amendment various new
forms of taxation could be imposed,
notably an income tax and regis
try tax on mortgages. Under the
present Constitution we can impose
no tax on mortgages owned by nom
residents. A registry tax, which
would be valid under this amend
ment, would reach all mortgages
alike. While all subjects of taxa
ton are required to have a cash
valuation with the tax equaHzed
throughout the state, no proper in
come tax could be imposed. such a
tax, if imposed, should be pro-
gressive, which would be valid
under this amendment.
SECOND PROPOSED AMENDMENT.
The second proposed amendment is
contained in Chapter 212 of the
Laws of 1905. 1t is sought by this
amendment to repeal Section 16 of
Article 8 of the Constitution, which
is as follows:
Section tp 1e; For For the purpose Of lending
of public highways and bridges. there is
hereby created fund to be known as
the State Road and Bridge Fund Said
from the income derived from invest
ments in the internal Improvement land
fund. or that may hereafter accrue to
said fund and shall also include all
bridge fund, however provided. The
legislature is authorized to add to such
fund for the purpose. Of constructing or
| state, by providing in it's discretion, for
| an annual tax levy upon the property Of
| this state Of not to exceed in any year
able property within the state. The I9g-
| islature is also authorized to provide for
the appointment by the governor Of the
| Highway Commission consisting Of
three members, who shall perform such
duties as shall be prescribed by law
|
| than personal expenses. Such commits
| sion shall have general superintendent
| of the construction of state roads and
bridges and shall use such fund in the
| construction thereof and distribute this
same in the several counties in the state
| upon an equitable basis: Provided,
| further that no county shall receive in
any year more than three per cent or
| less than one-half of one per cent OF
| the total fund thus provided and ex-
| pended during such year; and provided.
| further, that no more than one-third OF
| such fund ,accruing, in any, year shall
| be expended for bridges, and in no case
| shall more than one-third of the cost OF
! constructing or improving any road OF
bridge be paid by the state from suck
fund"
and substitute therefor the fol-.
lOwing(
''section 16. For the purpose of lending
| aid in the construction and Improvement
| Of public highways and bridges, there is
hereby created a fund, to be known as
| fund shall include all moneys accruing
| from the income derived from invest
ments in the internal Improvement land
| fund, or that may hereafter accrue to
| FUNDS accruing to any state road and
| Drldge fund, however provided.
| me legislature is authorized to add
to r, such n fund for the purpose Of con,
bridges of this state, by providing, in
It's discretion, for an annual tax levy
" upon aro me property Of this state Of not
one mill on all taxable property within
Provided, that no county shall receive
IN any year more than three (3) per cent
Of the total fund thus = pro ng and md
expended during such year; and provided,
| turner, that in no case shall more than