Warren sheaf., 1908-10-29

also upon the property within this state
-, =, ~ ~ Doom compan nies or owners, and OF
AZ snip builders or owners doing business
IN this state or having port therein
provided, that this act shall not apply
property owned by railroad companies.
tnelr lands and other property; and upon
the property of either or any Of such
companies p or owners tax as uniform
as reasona bly, may be with the taxes im-
posed upon similar property in sad state,
OF upon the earnings thereof within this
state, but may be graded or progressive,
or both, and in providing for such tax, or
IN providing for ascertaining the just and
true value OF such property, it shall be.
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 taking
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
panles, 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 polit-
lcal subdivisions thereof wherein the
same is situated, in the same proportion
as the proceeds Of taxes upon real prop
erty are distributed: Il 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, firm or
company except in the manner provided
by the ordinary methods of taxation"
and to substitute therefor the following:
"Sec., 1. 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 public
purposes, but public burying grounds,
public school houses, public hospitals,
| academies, colleges, universities and all
seminaries of learning, all churches,
church property used for religious pur-
poses, and houses of worship, institutions
of purely public charity, and public
property used exclusively for any public
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 a family, as the legislature
| may determine. But the legislature may
authorize municipal corporations to levy
and collect assessments for local i'm
pTovements upon property benefited
thereby without regard to cash valua-
ton, and nothing herein contained shall
be construed to affect, modify or repeal
any existing law prov ding for the taxa
ton OF the gross earnings of railroads."
This proposed constitutional amend
!nent was submitted and voted upon at
the last election and was declared car
red. But a contest was Instituted by in
terested parties, claiming that the amend
n1ent was net carried. That contest Is
now pending in the courts and it was on
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 have
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 last
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
(D as it now stands provides that all
taxes imposed shall be equaI-as near as
may bon all forms OF property, and all III
property upon which tax is imposed fs
required to have a CASH VALUATION
equaIized throughout the state.
Section two (2) as 1t 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 (3) as It now stands pro-
including MONEYS, CREDITS and IN.
VESTMENTS IN BONDS AND STOCKS,
shall be assessed according to their true
value in money.
Section four (4) as It now stands pro-
vides that property employed in banking
shall be subject to tax equal to that
imposed on other property. This is only
repetition Of the requirements Of Sec.
ttons one (D and three (3), as no rational
person would claim that banking capital
should be exempt from taxation.
Section seventeen (17) as 1t now stands
is not easy to understand, but 1t was In
tended by that section to relieve from the
operation Of sections one (1) and three
~, above quoted, property Of the classes
therein enumerated, so tina. gross earn
ings tax could be applied thereto instead
of direct taxation.
Owing to the provisions of sections ono
(1) and three (3) Of the present Consti.
tuition many amendments were from time
to time added so as to permit taxes to bo
imposed on specific kinds of property
otherwise than upon cash valuation
equaIizcd throughout the state. We have
amont: these exceptions railroad gross
Inheritance taxes; and the gross earnings
taxes authorized by sad section seven
teen (1D. s.
Several exemptions from taxation are
also provided for, but as these exenp-
tfons are not cEarg~i by the proposed
ame.:dr'sn-, viii! make no further ref
erence to thera.
TIE anne ,dment which, ado. >ed.
would take the Ei1ce Of all of The secS;ons
and amendments above referred to, is
simple and ..'ain. No provision Q; the
Constitution is necessary to authorize the
imposition of the taxes necessary for the
support Of the state and It's various poiit-
lcaI 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 pub
lie purpose and WAS uniform on the same
class Of subjects. Under this amend.
ment every tax law we now have on the
statue books would continue to be valid,