The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1932-10-06
Purpose and Effect
of each
Prepared by
HENRY N. BENSON
Attorney General of Minnesota


Addressed to
MIKE HOLM
Secretary of State
STATE OF MINNESOTA.
LEGAL DEPARTMENT.
HENRY N. BENSON.
Attorney General
HON. NIKE HOLM.
Secretary Of State.
Pursuant to Mason's Minnesota sta
tutes Of 1927. section 46. I herewith
transmit q statement of the purposes
and effect of the proposed amendment
Minnesota which are to be submitted
10 the electors Of the state at the 1873.
general election. in accordance Will
certain acts adopted by the Legislature
1t the 1881 session thereof.
PROPOSED AMENDMENT NO. I
By the adoption Of Laws 1881. chap
ter 420, the legislature has PROPOSED
an amendment to article ,. 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
be uniform upon the same class
of sub ects. and snail De levied ana
collected for public purposes. but
public burying grounds, public
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
public purpose. shall be exempt
from taxation, and there may be
exempted from taxation personal
property not exceeding in value
5000. for each household. individ-
ual or head of a family. as the
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 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
$500, 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-
form to the laws of the United
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. Il 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
panies. Any and al provisions of
the constitution of this State in
consistent herewith are hereby re-
pealed- Provided, that the legis
iature may authorize municipal
corporations to levy and collect
assessments for local improvements
upon pronerty benefited thereby
without regard to a cash va'ua-
ton, and provided further, that
nothing herein contained shall be
construed to affect modify or re-
peal any existing law providing
for the taxation or the gross earn
rings of railroads.
The Purpose of the Proposed Amendment
The pro acsed amendment is Intended
hrst to give the legislature specific Az
shorty t. enact such laws respectir!
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 assoc,a
tion, provided that the rate of tax o.
such shares shall not be greater than
assessed uScn other moneyed capital q
the hands of Individual citizens of sue
state coming in competition with tn
business of national banks. At presen
the laws of Minnesota provide tina
shares of such banking sssociario
shall be assessed at thirty-three an
one third per cent (3S 1870 of thei
and mortgages upon and executory con
tracts for the sale of real estate ar
taxed In this state at tower rate. TIL
supreme court of the United States ha
held that the Minnesota plan of taxin
shares of national banking associatio
Us invalid because these shares are take
at higher rate than moneys an
credits and mortgages on and executor
contracts for the sale of real es
tate. Under the proposed amendment
VI Is Intended to give the legislature tn
power to enact laws for the taxation {
national banks that shall! be in harmon
with the fedora, statutes on that sub
ject, even though such laws might OF
TEND other provisions of the state cor
'stltution.
The remainder Of the new matte
which would be placed In said section
by the proposed amendment is intende
TO give the legislature specific authorit
TO enact laws providing for a tax on In
comes, and on franchises and priv
seges measured by income, including In
come, franchises and privileges of raj
road companies. II Is proposed thu
all incomes may be classified and tina
taxes may be graduated and progressive
that Is to say. the rates may be differ
emit en- incomes of different sizes. II
intended that the legislature shall haN
power to allow reasonable exemption
from such taxes and 70 provide that sue
income taxes may be In lieu, either
whole or in part. OF taxes on such oths
classes of real or personal property Z