Twin-City herald. [volume] (Minneapolis, Minn.) 1927-1940, 1932-10-08
Addressed to
MIKE HOLM
Secretary of State

MIKE HOLM
Secretary of State
STATE OF MINNESOTA.
LEGAL. DEPARTMENT..
HENRY N. BENSON.
Attorney General
HON. MIKE HOLM,
Secretary Of state
Pursuant to Mason's Minnesota sta.
tutes of 1927, section As, ! herewith
transmit a statement of the purposes
and effect of the proposed amendment
to the constitution OF the state o.
Minnesota which are to be submitted
to the electors of the state at tho l9S;
general election. In accordance witt
certain acts adopted by the Legislature
at the 1891 session thereof.
PROPOSED AMENDMENT NO.
BY the adoption of Laws 1881. chap.
ter 40, the Legislature has proposed
an amendment to article 8. section l
OF the constitution, relating to taxa
tion. This section now reads as tol'
lows:
THE power Of taxation shall
or contracted away. Taxes shall
be uniform apo1 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 a.,
churches church property ano
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 taxation personal
property not, exceeding In value
ual or head of a family. as the
legislature may determine: Pro-
vided, that the legislature may
authorize municipal corporations
to levy and collect assessments
for local improvements upon prop
erty. benefited thereby. without re-
gard to a cash valuation. and pro-
vided further, that nothing here
In contained shall be construed to
affect, modify or repeal any exist.
ing law providing for the taxa.
tion Of the gross earnings OF rail-
roads"
II amended as proposed. this section
will read as follows:
"The power of taxation shall
never be surrendered. suspended
or contracted away. Taxes shall
of subjects, and shall be levied
and collected for public purposes.
but public burying grounds. pub
lie school houses, public hospitals,
academies, colleges. universities.
and all seminaries of learning. all
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 taxation personal
property not exceeding In value
5000, for each household. indivi-
dual or head of the family, as the
legislature may determine. The
legislature may enact any law re-
quired to make the taxation or
national banking associations con-
form to the laws OF the United
States. Taxes may be imposed
and privileges measured by In
come. including income, franchises
and privileges Of railroad COM
panies, which may be CLASSIFIED,
and which taxes may be graduated
and progressive, and the iegisia-
ture may prescribe reasonable
exemptions. and such taxes may
be In lieu, in whole or in part, OF
taxes on any class or classes of real
or personal property as the legis-
lature may determine. 1t shall not
be necessary to submit to a vote
of the people any law imposing
tax upon the income., franchises
panies. Any and all provisions OF
the constitution Of this State in
consistent herewith are hereby re-
pealed. Provided, that the legis-
lature may authorize municipal
corporations to levy and collect
assessments for local improvements
upon property benefited thereby
without regard to a cash valua-
ton. and provided further, that
nothing herein contained shall be
construed to affect. modify or re-
peal any existing law providing
for the taxation Of the gross earn
ings OF railroads"
the Purpose Of the Proposed Amendment
The proposed amendment 10 Intended
FIRST to give the legislature specific au.
thority to enact such laws respecting
the taxation Of national banking asso.
Citations az will conform to the laws Of
the United States. The laws OF the
United States at present provide In sub.
stance that the states may tax the
shares Of national banking zssocia.
ton, provided that the rate Of tax or
such shares shall not be greater than Il
assessed upon other moneyed capital u
the hands Of Individual citizens Of such
state coming In competition with the
business Of national banks. AZ present
the laws Of Minnesota provide that
ssares Of such q banking association
shall be assessed at thIrty-three and
ne-third per cent (33 1870 Of thelI
true and fuii value. Moneys and credits
and mortgages upon and exeeutory con.
tracts for the sale Of real estate are
taxed In this state at q lower rate. The
supreme court OF the United States has
held that the Minnesota plan of taxing
shares Of . national banking association
10 invalid because these shares are taxed
at q higher rate than moneys ara
contracts for the sale Of real Is.
tate. Undsr the proposed amendment
Il 10 Intended TO give the legislature the
power to enact laws for the taxation OF
national banks that shall be In harmony
with The federal statutes on that sub.
leet, even though such laws might Of.
send other proSlslens Of the state con.
Btitution.
The remainder Of the new matter
which would be placed In said section
BY the proposed amendment ls Intended
70 give the iesisiaturs specific authority
10 enact laws providing for tax on IN.
zones, and on franchises and priv.
leses measured ny income, Including In.
come. franchises and privileges Of rail-
rOou companies. " ~ proposed tndt
aii incomes may be classified and that
taxes may be graduated and progressive;
that 10 to say, the rates may be differ.
ent en- Incomes OF different sizes. Il u
Intended that the legislature shall have
power 20 allow reasonable mptions
IRON, such taxes and 70 provide that sueh
Income taxes may be In lieu, either In
whole Or In part, Of taxss an such other
slassss 81 real Or personal property a.