Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1908-02-08
MORRIS REFUSES
TO PAY The TAX
TO RAISE FUNDS FOR STATE
INEBRlATE FARM.
City Attorney Ormond Gives His
Opinion that the Plan to Raise
Funds by Taxing Public Money
of Cities is Unconstitutional.

The last legislature made provision
for the establishment of an Inehriate
Farm, the funds for the support of the
same to come from tax of two per
cent levied on the licenses collected
by the various municipalities of the
state. Many of the cities of the state
have already paid this tax, but on the
advise of City Attorney Ormond, the
City o.,Morris has refused to pay the
tax, because the law is unconstitution-
al and void. Mr.. Ormond's opinion is
set forth in the following letter which
he has sent to the city council
February 5, 1908
To the Common Council of the City
of Morris,
Gentlemen:
At the request of your City Clerk,
I have made an examination of Chap.
2Ss, Laws of 1907, Creating and es-
tablishing a hospital farm for in
ebriates, and authorizing the State
Board of Control to purchase land
therefor and to provide means for
the building and maintenance of such
institution" and have the honor to
inform you that in my opinion Sec
ton 10 of said Act, which declares:
"For the building and maintenance
Of said hospital a tax of 2 per cent
is hereby levied upon all license fees
for the sale of intoxicating liquors
under the laws of this state, and
whenever a license is granted by any
City, Village, County or municipality
for the sale of Intoxicating liquors,
per cent of the amount charged for
such license shall be set aside by
such Village, City, County or Muni-
cipality issuing such liquor license
for the payment of the tax specified
in this section, and shall be imned-
lately remitted by draft to the State
Treasurer, who shall credit the same
to fund known as the inebriate
fund.-" is unconstitutional and void,
and that the tax sought to be levied
and enforced hereunder should not
be paid as there is no warrant in law
for the imposition of such a tax,
however worthy the motive. Article
8, Section of the Constitution of
the State of Minnesota, expressly
exempts from taxation Public pro-
perty used exclusively for any public
purpose" This provision of the con-
stitution is self executing; it creates
the exemption. No legislation is neces-
sary to give it force or effect, and
statutory enactments can neither add
to or take from it. 80 MINI. 90; A
L. r. A. 202. The question then
whether municipal funds derived
from the issuance of retail liquor Ii
censes are exempt from taxation
must be determined therefore, sole
upon the constitutional provision
above quoted, and not from legisla-
tive enactment. The Revised Laws
Of 1905, Section 795, Subdivision
reiterates this constitutional declar-
alton. Under the enactment of 1907
the legislature clearly attempts to
Rvy tax of 2 per cent upon all Ii
cense fees (moneys received by the
different municipalities from retail
liquor dealers taking out licenses)
for the sale of Intoxicating liquors,
and not a tax upon the right to is
sue the license, a thing not taxable
under the laws of this state. and in
plain language, a tax upon the pub
lie funds of the city, contrary to the
provisions of the constitution exempt
ing from taxation public property used
exclusively for public purposes. And
while in the earlier decisions of the
Supreme Court of this state, touching
the question of constitutional eXemp-
tions, real estate was alone involved,
it was held in State VS.. Seabury Mis-
sion, 80, Mimi, 80, Judge Brown writ
ing the opinion that the exemption
also embraced personal property and
applied to the funds of an institu-
ton claiming the exemption.
There is no question but that the
legislature has absolute power to
grant to or withhold from a munich
Ifalzcorporation the right to issue re-
tail liquor licenses, and direct how
the revenues derived therefrom shall
be expended, or into what fund of a
municipality they shall be paid, but
having once bestowed the power up
on a municipality to issue licenses,
and directed that the revenues de-
rived therefrom shall be paid into
the city treasury and credited to a
certain fund for the purpose of de-
axS6He4H