The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1906-10-24

Section 1. Tie power of taxation shan
never be surrendered, suspended or con-
tracted away. Taxes shall be uniform
upon the same class of subjects and
shall be levied and collected for public
purposes, but public buryyiing g rou;nd1s'
academies, colleges, universities, and all
seminaries of learning. all churches
church property, and houses of worship,
institutions of purely public charity, ana
public property used exclusively for any
public purpose, shall be exempt from TAX
alton, and there may be exempted from
taxation personal property not eXceeulns
in value $500 for each household. indl-
vidual or head of a family, as the legis-
iature may determines: PROVIDED, thaI
the legislature may authorize munlclpal
ments for local improvements upon prop
erty benefited thereby without regard 70
cash valuation: and, provided turtner,
that nothing herein contained shali pe
any existing law providing for the TAXA,
ton of the gross earnings OF rallroaus.
The purpose and effect of this
amendment would be to greatly en-
large the power of the legislature
with reference to the subject OF
taxation. Section one Cd as II now
stands provides that all taxes I'M
posed shall be equal-as near as may
be-on all forms of property, and all
posed is required to have a lash
VALUATION equaIized throughout
the state.
Section two as it now stands re-
quires the legislature to levy the
necessary taxes annually to defray
the expenses of the state. That rs
the duty of the legislature without
any constitutional direction.
Section three as it now stands pro-
vides that all real and personal
property. including MONEYS, CRED
ITS and INVESTMENTS IN BONDS
AND STOCKS, shall be assessed ac-
cording to their true value IN
money.
Section four as it now stands pro-
yides that property employed in
banking shall be subject to TAX
equal to that imposed on otner
property. This is only a repetlt1oh
of the requirements of Sections one
and three, as no rational person
would claim that banking cap1tai
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, propeE.y
of the classes therein enumerated,
so that a gross earnings tax couHi
be applied thereto instead OF dlrect
taxation.
Owing to the provisions of sec
tio~s 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 a cash ValuatIon
equaIized throughout the state. we
have among these exceptions rail-
road gross earnings taxes; munich
pal frontage taxes; inheritance
taxes: and the gross earnings taxes
authorized by said section seven
teen.
Several exemptions from taxation
are also provided for, but as these
exemptions are not changed by the
proposed amendment, 1 will make
NO further reference to them.
The amendment which, If adopted,
would take the place of all OF the
sections and anne md IN ents above re-
ferred to, is simple and plain. NO
provision of the Constitution liz
necessary to authorize the I'M
position of the taxes necessary for
the suupOrt of the state and it's
various political subdivisions. The
power of taxation is inherent In
government. This proposed amend
ment declares that this inherent
power of taxation shall never ne
surrendered, suspended or con-
imposed for public purposes and
shall be uniform on the sa nae 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 a public purpose
and was uniform on the same ella IS
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 amendme mt
would as indicated, repeal the So
called inheritance tax amendment
and the grOSs-earnings tax amend
ment adopted i'm 1906 as contained
in said section seventeen, but in
their place this, amendment would
give the Legislature greater auff or
ity. Under this amendment tn"
power to impose Inheritance tax"S
would be unlimited. and any form
of gross earnings tax would Oe
valid. The gross earnings tax on
railroads would not be affected by
this amendment. as the Constitution
provides thEt It can not he changed
with this amendment various new
forms of taxation could he 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 cash
valuation with the tax equa1ized
throughout the state, no proper In
come tax could be imposed. Such Il
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
amen dment to repeal Section 10 of
Article o of the Constitution, which
Is as follows,
Section 16. For the purpose of lending
aid in the construction and Improvement
of public highways and bridges. there is
hereby created fund to be known as
ID Dit Il