Twin-City herald. [volume] (Minneapolis, Minn.) 1927-1940, 1932-10-29

AL AGOLASA
Secretary of State
STATE OF MINNESOTA.
LEGAL DEPARTMENT.
HENRY IL. BENSON,
Attorney General.
HON. MIKE HOLM,
Secretary of State.
Pursuant 10 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 Of
Minnesota which are to be submit co
to the electors of the state at the 1873.
general election, in accordance WITH
certain acts adopted by the legislature
at the 1881 session thereof.
PROPOSED AMENDMENT NO.
gy.the adoption of Laws 1881, chap.
ter 420, the legislature has proposed
an amendment to article 8. section |
of the constitution, relating to taxa
ton This section now reads as fol-
lows:
THE power of taxation shall
never be surrendered, suspended
or contracted away. Taxes SHAH
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, s.
academies, colleges, universities,
and all seminaries of learning, all
churches. church property 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 taxation personal
property not exceeding in value
5000. for each household. ndivid-
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
ton of the gross earnings of rail-
roads.
If amended as proposed. this section
will read as follows:
THE power of taxation shall
never be surrendered. suspended
or contracted away. Taxes shall
be uniform upon the same class
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
churches, church property 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 taxation personal
nropertv 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
upon incomes and on franchises
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 legisla-
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 vote
of the people any law imposing a
tax upon the income, franchises
or privileges of railroad COM.
panfes 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 tar alton of the gross earn
ings of railroads"
The Purpose OF The Proposed Amendment
The proocsed amendment is Intended
first to give the legislature specific au
thority to enact such laws respective
the taxation Of national banking asso
Citations as will conform to the laws o
the United States. The laws of tn
United States at present provide in sub
stance that the states may tax tn
shares of a national banking assoca
ton, provided that the rate OF tax Of
such shares shall not be greater than 1
assessed upon other moneved capital II
the hands of Individual citizens of sucl
state coming in competition with tn
business of national banks. At preser
the laws of Minnesota provide tina
shares of such a banking association
shall be assessed at thirty three ant
one third per cent (s3 1870 of thei
true and full value. Moneys and credit
and mortgages upon and executory con
tracts for the sale of real estate ar
taxed In this state at lower rate. tn
supreme court of the United States ha
held that the Minnesota plan of taxin!
CT Of hankir0 aS~OCiaffol
is invalid because these shares are take
at a higher rate than moneys an
credits and mortgages on and executor
contracts for the sale of real es
tate. Under the proposed amendmen
1t is Intended to give the legislature tn
national banks that shall be in harmon
with the federal statutes on that sub
Iect, even though such laws might of
fend other provisions of the state con
etituticr.
Tfie r6rr-iqS<r Of t'1e n>w rlaetc
WhIeii Vctst b9 fiacsd In eaid section
by the rr>-ce@1 >-scncT1ent Is lnten5e
to give IN. legislature specific autt,oris,
to enact laws prGv.Ginn for IT,. on In
comes. and on frxnesises and rrivI
leees measured by Income, Including In
come. franchises AMI privileges of rail
read companies. Ii Is proposed tina
all incomes may be classified and tina
taxes may be graduated and progressive
that is to say, the rates may be differ
ent en- incomes of different sizes. II I
intended that the legislature shall hav
power to allow reasonable exemption
from such taxes and to provide that sucl
income taxes may be in lieu, either Il
whole or fin part, of taxes on such othe
classes OF real or personal property a