Morris tribune., 1912-08-09
EXEMPTIONS.
Their Unlawful Use to Escape
Taxation.
XVIII. EXEMPTION FROM TAX
ALTON

Lie SGnLS PLONIuSS IudG p4OpSLGN NSCH
for certain specified puposes shall ex-
empt from taxation. Exempt proper
ty may be divided into four general
classes. (I) educational, (2) religious,
(3) charitable, and ~ public. In
addition to the above, there may be
exempted from taxation personal pro-
perty not exceeding in value $500 for
each household, individual or head of
a family IS the legislature may deter
mine.
Property for educational purposes
includes public libraries, public
houses, academies. colleges. universi-
ties. and all seminaries of learning.
Property leased 10 an educational
institution. however, or property
owned by such an institution but not
devoted to or necessary for it's use is
not exempt from taxation.
Church property includes all
churches and houses of worship and
the land necessary for the proper use
and enjoyment of the same. Mere
ownership by church. however,
does not necessarily exempt the pro-
perty from taxation. Under the de-
cisions of the court parsonage or a
rectory belonging to a church, even
though used in part for religious SER
vices. is not exempt from taxation; nor
is land or other property owned by a
church but not used Tor church purposes
exempt property.
Property used for charitable pur-
poses includes public hospitals. and all
institutions of purely public charity.
such as almshouses. homes for orphans,
the aged or dependents. and all other
property devoted exclusively to public
charity.
Public property includes all property
of the federal and state governments
and the property of each municipality
of the state used for public proposes.
Property owned by municipality but
not used or necessary for public pur-
poses is not exempt from taxation.
In general u ay it may be said that
it is the use, not the ownership, that
determines the question of exemptions
institutional provisions governing
exemptions, and statutory laws based
on the constitution. are strictly con-
strued by the courts. Such exemp-
tions are regarded as an abrogation
of the part of the sovereignty of the
state. and they are consequently con-
fined to the strict letter of the con-
stitution. aid can neither be enlarged
or extended by legislative enactment.
Notwithstandln these restrictions
the legislature has from time to time
enacted laws exempting from taxation
other classes of property not embraced
in the constitutional provision. 1t
has, for instance. attempted.to exemp-
the property of incorporated district
and county agricultural societies. and
the buildings and other property
owed and used exclusively by bene-
ficiary associations and fraternal bene-
fciarY associations, as we'll as an adj
! ditional property exemption of 500
for each member of the national guard.
These laws are. clearly uncons itu.
tional and fail to accomplish the pur-
pose for which they were enacted. AS
already stated. the legislature has no
authority, either directly or indirectly,
to exempt property or persons from
taxation except as authorized by the
constitution, and as these exemptions
are not authorized by the constitution.
it is held by the legal department of
the state that legislative enactment
attempting to do so is null and void.
The constitutional provision relating
to personal property exemption leave
it optional with the legislature to de-
eide whether there shall or shall not
be any such exemption, and the amount
thereof, not exceeding 5000. The
Legislature may also determine whether
-the exemption shall apply to each
household, individual or head O.: a
family. The present exemption OF
500 applies to each individual subject
to personal property assessment.
There is considerable abuse of the
personal property exemption in some
districts Of the state. Not few
people attempt to list their persona
property in the name of several mem.
bers of the family. In some case:
called to the attention of tie tax com,
mission personal property was divided
among as many as six members wher
the actual and bona fde owner was
the head of the family.
This is serious violation of the
law and is punshablo by fine or impris
onment. Section 5O33, Revised Laws
of 1905. provides that every person
who, in making any statement, ora
or written, which is required or author