The Appeal., 1908-10-31

as reasonably may be with the taxes i'm
posed upon similar property in said state,
or 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 tho 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
portionate business, earnings, mileage or
quantity Of production or property now
or hereafter existing Of any such COM
pantes, 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 az aforesaid;
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-
ical subdivisions thereof wherein the
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, firm or
company except in the manner provided
by the ordinary methods of taxation"
and to substitute therefor the following:
''Sec. /. 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
provements upon property benefited
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
tion Of the gross earnings of railroads"
ment was submitted and voted upon at
the last election and was declared car
red. But contest was Instituted by in
terested parties, claiming that the amend
ment was not carried. That contest Is
now pending in the courts and it was on
that account that the legislature decided
to re-subnt the amendment to the peo-
Pile, 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
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
CD as it now stands provides that all
taxes imposed shall be equal-as near as
may be-on all forms of property, and all
property upon which a tax is imposed Is
required to have a CASH VALUATION
equaized throughout the state.
Section two (2) as 1t now stands re-
qulres 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 1t now stands pro-
vides that all real and personal property,
VESTMENTS IN BONDS AND STOCKS,
shall be assessed according to their true
value in money.
Section four ~ as It now stands pro-
vldes that property employed In banking
shall be subject to tax equal to that
imposed on other property. This is only
a repetition of the requirements of Sec
tions one (1) and three (a), as no rational
person would claim that banking capital
should be exempt from taxation.
Section seventeen (17) as it now stands
Is not easy to understand, but it was in
tended by that section to relieve from the
operation Of sections one (1) and three
(3), above quoted, property Of the classes
thereln enumerated, so that gross earn
OF direct taxation.
Owing to the provisions of sections one
% and three (3) of the present Const-
tuition many amendments were from time
to time added so as to permit taxes to be
Imposed on specific kinds of property
equaIized throughout the state. We have
among these exceptions railroad gross
earnings taxes; municipa! frontage taxes;
inheritance taxes; and the gross earnings
taxes authorized by said section seven
teen (17.
Several exemptions from taxation are
also provided for, but as these exemp-
amendment, | will make no further ref
erence to them.
The amendment which, It adopted,
would take the place Of all Of the sections
and amendments above referred to, is
simple and plain. No provision OF the
imposition OF the taxes necessary for the
support of the state and its various poIIt-
ical subdivisions. The power of taxation Is
Inherent In government. This proposed
amendment declares that this Inherent
power of taxation shall never be surren.
tod
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
only that the tax was levied for a 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,
because under this amendment all limita.
tions on the power Of the legislature
would be taken away.
as Indicated, repeal the so called Inherit
ance tax amendment, and the gross earn
Ings tax amendment adopted in 1895, as
contained In said Section seventeen (1N,
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 unIimt-
ed, 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 they cannot be changed without sub.
hitting the law making the change to a
vote Of the people. But with this amend >
ment various new forms Of taxation could
be imposed, notably an income tax, tom
mage tax on iron ore and registry tax on
mortgages. Under the present Constitu-
ton we can Impose no tax on mortgages
owned by non-resldents. A registry tax,