The people's voice. [volume] (Helena, Mont.) 1939-1969, 1941-12-31
(The second article on this sub
|ect. by Harold BrOwn)

(IQ6 second arL1cle on LIB sup-
1ect, by Harold Brown.)
Summary: As l stated in my first
article on this subject, graduated
land tax, frankly, is designed to place
a penalty upon large holdings OF agri-
cultural land. The primary purpose
of such plan must be punitive rather
than revenue raising. Several OF the
states have passed Homestead Exemp-
uation of farm property from taxation.
This in itself is one form Of grad
uated land tax. These exemptions
have ranged from $500 in the state
Of Wyoming, to $4,000 in the state Of
Vermont. Any plan to bring about
the passage Of Homestead Exemp
ton bill in Montana has been opposed
on the ground that it would deprive
the state Of sufficient revenue to OPP
crate state and county government.
A properly graduated land tax would
meet this objection.
AS revenue producing measure, it
should be equal, If not better than
the present system of taxing farm
property. In the state of Oklahoma
the tax was based on acres and sought
to eliminate the number of acres any
person could own.
In Montana with the great differ
ence In the productivity Of different
areas, any plan based on the number
of acres would be impractical. A
graduated land tax to be workable
at all, would have to be based on val
uation.
Legal Difficulties involved
Prior to the session of the state
legislature which convened January 1,
1941 the Farmers Union made some
study of steps that should be neces-
sary to secure passage Of graduated
land tax. We were advised by sew
eral legal authorities that such tax
would be unconstitutional. Some law
yers held that three separate and dis
tinct constitutional amendments would |
be necessary before such tax could |
be applied in this state.
Article XII of the State Constitution
Section 1, of this article states there
must be uniform rate of assessment
for taxation. Section 8, places limit
upon the rate of taxation of real and
personal property of three mills.
Section XII again repeats that taxes
shall be uniform.
Legal authorities have expressed
the opinion that it would require
separate and distinct amendment to
each Of these sections before the grad
uated land tax would be constitutions
al. On this point there may be some
of opinion. Since the
of Montana provides that
only three constitutional amendments
may be voted on by the people at any
general election, the chance of secur-
ing the adoption of three separate
dealing with the same {
subject by any session Of the legis-
allure and then securing passage of /
Ill three of these amendments by the
people at one election seems quite 1
.emote. II
However, Section 8, Article II, sets t
up mines and mining claims In {
class by themself for taxation. Some ]
argue that agricultural lands could {
llso be set up as class by itself I
Ind new section be written in Arti- t
lie IL, dealing with taxation of agri- c
,ulural lands as special class. If L
his could be done, the graduated plan s
# taxation could be written into the u
by one amendment. I
\ Proposed Plan Q
lated land tax, l would offer the fol- U
owing: as an amendment to Article
2 by adding Section 10 which would T.
ontain these points. IL