The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1908-10-14


OF all boom companies or owners, and OF
all ship builders or owners doing business
In this state or having port therein
Crowded, that this act shall not apply
to property owned by railroad companies,
their lands and other property; and upon
the property of either or any~ot such
companies or owners,-a tax as uniform
as reasonably may be with the taxes i'm
posed upon similar property in sad state
or upon the earnings thereof WITHIN tnls
state but may be graded or progressive
or both, and in providing for such tax, or
in providing for ascertaining the just ana
true value of such. property, 1t snail pe
competent for the Legislature in either
or all such cases. to impose such tax
upon any or all property thereof WITHIN
this state, and in either case by taxing
as the basis Of such imposition the pro-
pOrtiOnate business, earnings, mileage or
quantity of production or property now
or hereafter existing of any such COM
panies, persons or owners, transacted or
existing in this state, in relation to the
entire business mileage or quantity OF
production or property OF such COM
panies, persons or owners as aforesaid;
or in such other manner, or by such
other method as the legislature may de-
termine; but the proceeds OF such taxes
upon mining property shall be distributed
between the state and the various po!t-
ical subdivisions thereof wherein che
same is situated, in the same proportion
as the proceeds of taxes upon real prop
erty are distributed: Provided further,
that nothing in this act contained shall
operate to authorize the assessment or
taxation of any farm land or ordinary
business blocks or property owned by
any such corporation, person, hrm Ut
company except in the manner PROVIDED
by the ordinary methods of taxation,
and to substitute therefor the following:
"Sec l. The power Of taxation shall
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 pubic
purposes, but public burying grounds
public school houses public hospltals,
academies, colleges, universities, ana all
seminaries of learning, all churches
church property used for religious pur-
poses, and houses of worship, institutions
Of purely public charity, and pupnc
property used exclusively for any pubhc
purpose, shall be exempt from taxation,
and there may be exempted from TAXA
ton personal property not exceeding IN
value 5000 for each household, individual,
or head of family, as the legislature
may determine. But the legislature may
authorize municipal corporations to levy
and collect assessments for local I'M
provements upon property penenteo
thereby without regard to a cash valua.
ton, and nothing herein contained shall
be construed to affect, modify or repeal
any existing law providing for the taxa
ton of the gross earnings Of railroads..
This proposed constitutional amend
ment was submitted and voted upon at
the last election and was declared car.
ried. But contest was Instituted by IN
terested parties, claiming that the amend
ment was not carried. That contest is
in ia IT
that account that the legislature decided
to re submit the amendment to the peo-
pie, so that however the contest may be
decided, the next legislature may nave
the power granted by the amendment:
For the purpose of discussing the effect
of the amendment | will assume that the
same amendment Submitted at the tase
election, did not carry.
The purpose and effect Of this amend
, ment would be to greatly enlarge the
power of the legislature with reference
to the subject of taxation. Section one
% as it now stands provides that all
taxes imposed shall be equaI-<as near as
! may be-on all forms OF property, ana an
! property upon which a tax is imposed 70
required to have CASH VALUATION
equaIized throughout the state.
Section two ~ as it now stands re-
| quires the legislature to levy the neces'
sary taxes annually to defray the ex:
penses of the state. That Is 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, CREDITS and IN.
VEsTMENTs IN BONDS AND STOCKS,
value in money.
Section four (4) as 1t now stands pro-
vldes that property employed in banking
shall be subject to a tax equal to that
imposed on other property. This is only
repetition of the requirements of Sec.
! tions one (1) and three (3), as no rational
person would claim that banking capital
| should be exempt from taxation.
Section seventeen (1) as it now stands
! Is not easy to understand, but 1t was In.
! tended by that section to relieve from the
! operation of sections one Cd and three
! ~, above quoted, property of the classes
therein enumerated, so that gross earn.
ings tax could be applied thereto instead
| Of direct taxation.
! Owing to the provisions of sections one
! (1) and three ~ of the present ConstI-
tuition many amendments were from time
| to time added so as to permit taxes to be
| imposed on specific kinds of property
! otherwise than upon cash valuation
| equalized throughout the state. We have
among these exceptions railroad gross
earnings taxes; municipal frontage taxes;
| inheritance taxes; and the gross earnings
taxes authorized by Satd Sectioh seven.
| teen (17).
Several exemptions from taxation are
| also provided for, but as these exemp-
| tions are not changed by the proposed
amendment, will make no further ref
| erence to them.
The amendment, which, if adopted,
would take the place of all of the sections
and amendments above referred to, Is
simple and plain. No provision of the
Constitution is necessary to authorize the
imposition of the taxes necessary for the
support Of the state and it's various poit-
| ical subdivisions. The power of taxation Is
Inherent In government. This proposed
amendment declares that this inherent
| power OF taxation shall never be surren-
| dered, suspended or contracted away;
that taxes shall be imposed for public
purposes and shall be uniform on the
| same class Of subjects. Should this
amendment 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 pub
lie purpose and was uniform ON the same
class of subjects. Under this amend.
mont every tax Jaw we now have on the
statue books would continue to be valid,
because under this amendment all Imita-
tons on the power of the legislature
would be taken away.
The adoption of this amendment would
as Indicated, repeal the so-oaled Inherit
ance tax amendment, and the gross earn
tnqs tax amendment adopted in 1896, al
contained In said Section seventeen (17)
but In their place this amendment would
give the legislature greater authority
Under this amendment the power to I'm.
pose inheritance taxes would be unIimtt.
ed, and any form Of gross earnings tax
! TIA