Twin-City herald. [volume] (Minneapolis, Minn.) 1927-1940, 1932-10-22
Purpose and Effect
of each
Addressed to
MIKE HOLM
Secretary of State

MIKE HOLM
Secretary of State
STATE OF MINNESOTA,
LEGAL DEPARTMENT.
HENRY ~. BENSON
ATTORNEY General
HON. MIKE HOLM,
Secretary of State.
Pursuant to Mason's Minnesota Sta
tutes of 1927. section IS. herewith
transmit a statement of the purposes
and effect of the proposed amendments
to the constitution of the state OF
Minnesota which are to be submitted
to the electors of the state at the 1891
general election. In accordance with
certain acts adopted by the legislature
at the 1891 session thereof.
PROPOSED AMENDMENT NO.
BY the adoption of Laws 1891. chap;
ter 420, the legislature has proposed
an amendment to article 3. section l
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 shall
Iof 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
houses OF worship Institutions of
i 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
nronnrtv mt axPaadtnR In Valne
$780, for each household. individ-
ual or head of 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
ing law providing for the taxa.
ton of the gross earnings of rail-
roads,"
IL amended as proposed, this section
will read as follows:
1.-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
but public burying grounds. pub
lie school houses, public hospitals.
academies. colleges, universities.
and all Summaries 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, indivi-
dual or head OF the family. as the
legislature may determine. The
legislature may enact any law re-
quired to make the taxation OF
national banking associations con-
States. Taxes may be imposed
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 a vote
Of the people any law imposing a
tax upon the income. franchises
or privileges of railroad COM
panies. Any and all provisions of
the constitution of this State In.
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"
Che Purpose Of the Proposed Amendment
The proDosed amendment Is Intended
first. TO give the legislature specific au-
thority TO enact such laws respecting
the taxation of national banking asso-
Citations as 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 associa-
ton, provided that the rate OF tax or
such shares shall not be greater than Is
assessed upon other moneyed capital In
the hands Of Individual citizens of such
state coming In competition with the
business OF national banks. At present
the laws Of Minnesota provide that
shares OF such a banking association
shall be assessed at thlrty-three and
one third per cent (s3 1870 Of their
true and full value. Moneys and credits
and mortgages upon and executory con-
tracts for the sale OF real estate are
taxed In this state at 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 higher rate than moneys and
credits and MORTGAGES on and executory
tate. Under the proposed amendmen;
II Is intended to give the legislature the
power 20 enact laws for the taxation Of
national banks that shall be In harmony
with the federal statutes on that sub.
Jeet, even though such laws might Of.
fend other provisions Of the state con.
stitution.
The remainder Of the new matter
which would be placed IN said section
BY the proposed amendment 10 Intended
90 give the legislature specific authority
comes, and on franchises and priVl.
Ieaes measured by income, including In.
come, franchises and privileges Of rail-.
road companies. II IL proposed that
all incomes may be classified and that
taxes may be graduated and progressive;
that is TO say. the rates may be differ.
emit en- Incomes of different sizes. Il I.
intended that the legislature shalt have
power to allow reasonable exemptions
Income taxes may be In lieu, either In
whole or In part, Of taxes on such other
siassss 81 real 81 personal property a.