powers for corporate purposes, such taxes to be uniform as to persons and property. Bank shares are to be listed at their true value and taxed where located. A like rule applies to shareholders of other corporate stock. All property not exempted shall be taxed:

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The corporate authorities of counties, townships, school districts, cities, towns, and villages may be vested with power to assess and collect taxes for corporate purposes; such taxes to be uniform in respect to persons and property within All shares * * * the jurisdiction of the body imposing the same. in any bank or banking association * shall be listed at their true value in money and taxed for municipal purposes in the city, ward, town, or incorporated village, where such bank is located, and not elsewhere: Provided, That the words "true value in money" as used in line 12 (line 12 of original MS) of this section shall be so construed as to mean and include all surplus or extra moneys, capital, and every species of personal property of value owned or in possession of any such bank: Provided, A like rule of taxation shall apply to the stockholders of all corporations other than banking institutions. And the General Assembly shall require that all the property, except that herein permitted to be exempted within the limits of municipal corporations, shall be taxed for corporate purposes and for the payment of debts contracted under authority of law (art. 10, sec. 5).

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(b) School taxes.-Counties are required to levy an annual tax of three mills on the dollar upon all the taxable property therein, and an annual poll tax of $1 for public schools. The comptroller general is authorized to levy additional taxes for school purposes upon the taxable property of the State, under certain conditions. The general assembly may also authorize any school district to levy additional school taxes (art. 11, sec. 6).

(c) Purposes for which taxes may be imposed. The general assembly shall not have power to authorize any county or township. to levy taxes except for certain purposes named herein.

The General Assembly shall not have power to authorize any County or township to levy a tax or issue bonds for any purpose except for educational purposes, to build and repair public roads, buildings, and bridges, to maintain and support prisoners, pay jurors, county officers, and for litigation, quarantine, and Court expenses, and for ordinary county purposes, to support paupers, and pay past indebtedness (art. 10, sec. 6).

By subsequent amendments, various counties and townships have been excepted from the above limitations.

(d) Special assessments.-Certain named counties and municipalities are authorized to levy taxes upon abutting and adjacent property for the payment of various permanent improvements by several amendments to the constitution (arts. 8 and 10).

(e) Exemption of manufactories.-By amendment to the constitution (1930) authority was given cities and towns to exempt manufactories from taxation, except for school purposes. Subsequently, the legislature was authorized to extend this provision to certain counties, and it has been variously extended to manufacturing industries of various character and capital throughout the State (art. 8, sec. 8).

D. SPECIFIC PROVISIONS (MUNICIPALITIES)

1. PROPERTY TAXES

(a) Uniformity.-(1) Corporate authorities of municipalities may be vested with taxing powers, taxes to be uniform as to persons and property. (See Par. C-1-a.)

(2) Cities and towns shall have power to assess and collect taxes for corporate purposes, including license taxes. Taxes are to be uniform upon persons and property:

The corporate authorities of cities and towns in this State shall be vested with power to assess and collect taxes for corporate purposes, said taxes to be uniform in respect to persons and property within the jurisdiction of the body composing the same; and all the property, except such as is exempt by law, within the limits of cities and towns shall be taxed for the payment of debts contracted under authority of law. License or privilege taxes imposed shall be graduated so as to secure a just imposition of such tax upon the classes subject thereto (art. 8, sec. 6).

(b) Limitation of taxing power. The powers of cities and towns to levy taxes and assessments shall be restricted by the legislature:

The General Assembly shall restrict the powers of cities and towns to levy taxes and assessments, to borrow money and to contract debts, and no tax or assessment shall be levied or debts contracted except in pursuance of law, for public purposes specified by law (art. 8, sec. 3).

(c) Special assessments.-There are certain cities and towns that by amendments to the constitution have been authorized to levy taxes upon abutting and adjacent property to pay for various permanent improvements (arts. 8 and 10).

(d) Exemptions.-Cities and towns are authorized to exempt manufactories from taxation, except for school purposes. (See par. C-1-e.)

2. ORGANIZATION

The organization and classification of municipal corporations is provided for, and the powers of each class to be defined by the general assembly:

The General Assembly shall provide by general laws for the organization and classification of municipal corporations. The powers of each class shall be defined so that no such corporations shall have any powers or be subject to any restrictions other than all corporations of the same class. Cities and towns now existing under special charters may reorganize under the general laws of the State, and when so reorganized, their special charters shall cease (art. 8, sec. 1).

SOUTH DAKOTA

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Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1889-As Amended)

A. GENERAL PROVISIONS

1. LEGISLATIVE POWERS

The legislative power is vested in the legislature, the power of initiative and referendum, with certain exceptions, being reserved, and is extended to municipalities:

* * * except such laws as may be necessary for the immediate preservation of the public peace, health, or safety, support of the state government and its existing public institutions; * (art. III, sec. 1).

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2. LEGISLATIVE LIMITATIONS

(a) Private or special laws may not be enacted in the following cases: Regulating county and township affairs; incorporating cities, towns, and villages; and granting to an individual, association, or cor

poration any special or exclusive privilege, immunity, or franchise whatever (art. III, sec. 23).

(b) No special privilege or immunity may be granted:

No law shall be passed granting to any citizen, class of citizens, or corporation privileges or immunities which upon the same terms shall not equally belong to all citizens or corporations (art. VI, sec. 18).

(c) Powers as to municipal affairs may not be delegated:

The legislature shall not delegate to any special Commission, private corporation, or association any power to make, supervise, or interfere with any municipal improvement, money, property, effects, or levy taxes (art. X, sec. 2).

3. THE WIFE'S SEPARATE ESTATE

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Rights of Married Women: The real and personal property of any woman in this state, acquired before marriage, and all property to which she may after marriage become in any manner rightfully entitled, shall be her separate property, and shall not be liable for the debts of her husband (art. XXI, sec. 5).

4. ALIEN PROPERTY RIGHTS

No distinction as to property rights can be made between resident aliens and citizens of the State:

No distinction shall ever be made by law between resident aliens and citizens, in reference to the possession, enjoyment, or descent of property (art. VI, sec. 14).

B. SPECIFIC PROVISIONS (STATE)

1. PROPERTY TAXES

(a) Uniformity and valuation.—(1) Taxation shall be equal and

uniform:

No tax or duty shall be imposed without the consent of the people or their representatives in the legislature, and all taxation shall be equal and uniform (art. VI, sec. 17).

(2) The legislature is empowered to divide all property into classes, to determine what shall be subject to taxation and what exempt. Taxes are to be uniform upon the same classes; taxes may be imposed upon franchises, licenses, incomes, and gross earnings:

To the end that the burden of taxation may be equitable upon all property, and in order that no property which is made subject to taxation shall escape, the legislature is empowered to divide all property including moneys and credits as well as physical property into classes and to determine what class or classes of property shall be subject to taxation and what property, if any, shall not be subject to taxation. Taxes shall be uniform on all property of the same class and shall be levied and collected for public purposes only. Taxes may be imposed upon any and all property including privileges, franchises, and licenses to do business in the state. Gross earnings and net incomes may be considered in taxing any and all property, and the valuation of property for taxation purposes shall never exceed the actual value thereof. The legislature is empowered to impose taxes upon incomes and occupations, and taxes upon incomes may be graduated and progressive and reasonable exemptions may be provided (art. XI, sec. 2; amended).

(3) Moneys, credits, stocks, bonds, notes, and bills and assets of every description, of all banks or bankers, shall be taxed so that all property used in banking may be taxed, as is the property of individuals:

The legislature shall provide for taxing all moneys, credits, investments in bonds, stocks, joint stock companies, or otherwise; and also for taxing the notes

and bills discounted or purchased, moneys loaned and all other property, effects or dues of every description, of all banks and of all bankers, so that all property employed in banking shall always be subject to a taxation equal to that imposed on the property of individuals (art. XI, sec. 4).

(b) Taxes for State expenses.-An annual tax to defray the ordi-. nary expenses of the State shall be provided, not to exceed 2 mills on the dollar of the assessed value of all taxable property.

In case of a deficiency in revenue, the legislature shall provide for an additional tax the ensuing year. And for the payment of the State debt, the legislature may levy an additional tax not to exceed 2 mills on the dollar in any one year:

The legislature shall provide for an annual tax, sufficient to defray the estimated ordinary expenses of the state for each year, not to exceed in any one year two mills on each dollar of the assessed valuation of all taxable property in the state, to be ascertained by the last assessment made for state and county purposes.

And whenever it shall appear that such ordinary expenses shall exceed the income of the state for such year, the legislature shall provide for levying a tax for the ensuing year, sufficient, with other sources of income, to pay the deficiency of the preceding year, together with the estimated expenses of such ensuing year. And for the purpose of paying the public debt, the legislature shall provide for levying tax annually, sufficient to pay the annual interest and the principal of such debt within ten years from the final passage of the law creating the debt; provided, that the annual tax for the payment of the interest and principal of the public debt shall not exceed in any one year two mills on each dollar of the assessed valuation of all taxable property in the state, as ascertained by the last assessment made for the state and county purposes (art. XI, sec. 1).

(c) Taxation of corporate property.—

The power to tax corporations and corporate property shall not be surrendered or suspended by any contract or grant to which the State shall be à party (art. XI, sec. 3).

(d) Tax to indemnify for damages to crops by hail.—

The providing of insurance against loss or damage to crops by hail is hereby declared to be a public purpose, and the legislature is authorized and empowered to levy an assessment upon agricultural land for such purpose, with such exemptions as may be provided by law.

The state may be divided into hail insurance districts and the assessment per acre in the different districts shall be as the legislature may determine, but such assessment shall be uniform upon all land of the same district that is similarly situated. The assessment hereby authorized may be levied by the legislature direct, or by the corporate authorities of the districts herein provided for, or by such other agency as may be authorized by general law (art. XXI, sec. 8).

(e) Exemptions.- (1) Constitutional exemptions:

The property of the United States and of the state, county, and municipal corporations, both real and personal, shall be exempt from taxation (art. XI, sec. 5).

(2) By an amendment to this section (1930), it was provided that all State-owned lands acquired under the rural credit act may be taxed for county, township, and school purposes.

(3) Legislative exemptions:

The legislature shall, by general law, exempt from taxation, property used exclusively for agricultural and horticultural societies, for school, religious, cemetery, and charitable purposes, and personal property to any amount not exceeding in value two hundred dollars for each individual liable to taxation (art. XI, sec. 6; see also par. B-1-a (2)).

2. INCOME TAXES

A gross income tax is imposed, applicable to business enterprises (art. XI, sec. 2; see par. B-1-a—(2)).

3. DEATH TAXES

An inheritance tax is imposed.

4. FRANCHISE TAXES

Franchise taxes are imposed on domestic and foreign corporations (See par. B-1-(2).)

5. LICENSE TAXES

License or occupation taxes are imposed by the state and munici palities. (See par. B-1-2.)

Poll taxes are imposed.

6. POLL TAXES

C. SPECIFIC PROVISIONS (COUNTIES)

1. PROPERTY TAXES

The organization of counties shall be by general law (art. IX, seu. 1) and so shall be the organizing of counties into townships (sec. 4); county officers are to be elected (sec. 5). Regulation of county and township affairs must be by general laws. (See par. A–2–a.)

D. SPECIFIC PROVISIONS (MUNICIPALITIES)

1. PROPERTY TAXES

(a) Municipal corporations shall be organized and classified by general laws. The legislature shall restrict their powers to levying taxes and assessments:

The legislature shall provide by general laws for the organization and classi fication of municipal corporations. The number of such classes shall not exceed four, and the powers of each class shall be defined by general laws, so that no such corporations shall have any powers, or be subject to any restrictions other than those of all corporations of the same class. The legislature shall restrict the power of such corporations to levy taxes and assessments, borrow money, and contract debts, so as to prevent the abuse of such power (art. X, sec. 1).

(b) Special assessments.-Municipalities may be vested with power to make local improvements by special assessments. Taxes for corporate purposes shall be uniform in respect to persons and property:

The legislature may vest the corporate authority of cities, towns, and villages, with power to make local improvements by special taxation of contiguous property or otherwise. For all corporate purposes, all municipal corporations may be vested with authority to assess and collect taxes; but such tax shall be uniform in respect to persons and property within the jurisdiction of the body levying the same (art. XI, sec. 10).