Little Falls herald., 1912-08-09
IN MINNESOTA
TWENTY-EIaHTH ARTICLE BY
STATE TAX COMMISSION EX-
EdPTION FROM TAXATION

STATE TAX COMMISSION EX-
EMPT1oN FROM TAXATION
The state constitution provides that
property used for certain specified pur.
poses shall be exempt from taxation.
Exempt property may be divided in
to four general classes, (1) educational,
(2) religious, (3) charitable, and (4)
public.
In addition to the above, there may
be exempted from taxation personal
property not exceeding in value 5000
for each household, individual or head
of family, as the legislature may de-
termine. ~:
Property used for educational pur.
poses includes public libraries, public
school houses, academies, colleges,
universities, and all seminaries Of
learning. Property leased to an educa-
tional 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 nee
essary for the proper use and enjoy
ment Of the same. Mere ownership by
a church, however, does not necessarily
exempt the property from taxation,
Under the decisions of the courts par
sonage or a rectory belonging to a
church, even though used in part for,
religious services, is not exempt from
taxation; nor is land or other property
owned by church but not used for
church purposes exempt property.
Property used for charitable purposes
includes public hospitals, and all in
stitutions Of purely public charity, such
as almshosues, homes for orphans, the
aged or dependents, and all other prop
erty 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 purposes.
Property owned by municipality but
not used OF necessary for public pur-
poses is not exempt from taxation.
In general way it may be said that
it is the use, not the ownership, that
determines the question of exemption.
Constitutional provisions governing
exemptions, and statutory laws based
on the constitution, are strictly con-
structed by the courts. Such exemptions
are regarded as an abrogation of part
Of the sovereignty Of the state, and
they are consequently confined to the
strict letter Of the constitution, and
can neither be enlarged or extended
by legislative enactment.
Notwithstanding these rest Motions
the legislature has from time to time
enacted laws exempting from taxation
other classes of property not embraced
in the constitutional provision. Tt has,
for instance, attempted to exempt the
property of incorporated district and
county agricultural societies, and the
buildings and other property owned
and used exclusively by beneficiary as.
sociations and fraternal beneficiary as
sociations, as we'll as an additional per
each member Of the national guard.
These laws are clearly unconstitution-
al and fail to accomplish the purpose
for which they were enacted. As al
ready stated, the legislature has no
authority, either directly OF indirectly,
to. exempt property or persons: from
taxation except as: authorized by the
constitution, and as these exemptions
are not authorized by the constitutions,
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 3 exemption leaves
it optional with the legislature to- de-:
eide whether there shall or shall not be
| any such exemption, and if any, the
amount thereof, not, exceeding: $500!
The legislature may also, determine
! whether the exemptions shall apply to
each household, individual or head of
a family The present: exemption Of
500 applies to each individual: SUBJ
ject to a 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 personal property
in the name Of several members Of
the family. In some cases called to the
attention Of the tax commission per-
sonal property was divided among as
many as six members of family when
the actal and bona fide owner was the
head Of the family
This practice is serious violation
of law and is punishable by fine OF
imprisonment. Section 5O33, Revised
Laws Of 1905, provides that every per.
son who, making any statement, oral
or written, which is required or author
lied by law to be made as a basis of
imposing or reducing any tax or as.
sessment, who shall wilfully make any
statement as to any material matter
which he knows to be false, shall be
guilty Of a gross misdemeanor.