3. DEATH TAXES

An inheritance tax is imposed.

4. FRANCHISE TAXES

Franchise taxes are imposed.

5. LICENSE TAXES

License or occupational taxes are authorized to be imposed by State, county, and municipalities:

All occupation taxes shall be equal and uniform upon the same class of subjects within the limits of the authority levying the tax * * * (art. VIII, sec. 2; amended 1930; see also par. B-1-a.),

6. POLL TAXES

Payment of a poll tax is required (art. VI, sec. 2, and art. VIII, sec. 1).

C. SPECIFIC PROVISIONS (COUNTIES)

1. PROPERTY TAXES

(a) The regulation of the affairs of counties, cities, towns, and school districts must be by general laws (art. III, sec. 56).

(b) All property taxes shall be assessed and taxes paid in the county where situated (art. VIII, sec. 11).

(c) A special provision is made with respect to railroad property: All property of railroad companies shall be assessed, and the taxes collected in the several counties in which said property is situated, including so much of the roadbed and fixtures as shall be in each county. The rolling stock may be assessed in gross in the county where the principal office of the company is located, and the county tax paid upon it, shall be apportioned by the Comptroller, in proportion to the distance such road may run through any such county, among the several counties through which the road passes, as a part of their tax assets (Art. VIII, Sec. 8).

(d) Seawall construction.-Counties and cities bordering on the Gulf of Mexico may levy a tax for construction of seawalls and breakwaters for sanitary purposes (art. XI, sec. 7).

(e) County-owned school lands.—

All agriculture or grazing school land mentioned in Section 6 of this Article owned by any county shall be subject to taxation except for State purposes to the same extent as lands privately owned (art. VII, sec. 6a; amended).

(f) Lands owned by the University of Texas.—

All lands mentioned in Sections 11, 12, and 15 of Article VII, of the Constitution of the State of Texas, now belonging to the University of Texas shall be subject to taxation for county purposes to the same extent as lands privately owned; provided they shall be rendered for taxation upon values fixed by the State Tax Board; and providing that the State shall remit annually to each of the counties in which said lands are located an amount equal to the tax imposed upon said land for county purposes (art. VII, sec. 16a; amended).

(g) Separate taxes for sinking funds.—(1) Counties and municipalities are authorized to levy taxes to provide for a sinking fund separately from taxes for current expenses (art. XI, sec. 6).

(2) Counties and political subdivisions may levy taxes to provide a sinking fund for the retirement of bonds issued for certain pur

poses:

* and levy and collect such taxes to pay the interest thereon and provide a sinking fund for the redemption thereof, as the legislature may authorize, and in such manner as it may authorize the same, for the following purposes to wit:

(a) The improvement of rivers, creeks, and streams to prevent overflows, and to permit of navigation thereof or irrigation thereof, or in aid of such purposes.

(b) The construction and maintenance of pools, lakes, reservoirs, dams; canals, and water ways for the purposes of irrigation, drainage, or navigation, or in aid thereof.

(c) The construction, maintenance, and operation of macadamized, graveled, or paved roads and turnpikes, or in aid thereof (art. III, sec. 52).

(h) Rate limitation.

The State tax on property, exclusive of the tax necessary to pay the public debt, and of the taxes provided for the benefit of public free schools, shall never exceed thirty-five cents on the one hundred dollars valuation; and no county, city, or town shall levy more than twenty-five cents for city or county purposes, and not exceeding fifteen cents for roads and bridges, and not exceeding fifteen cents to pay jurors, on the one hundred dollars valuation, except for the payment of debts incurred prior to the adoption of the amendment September 25, A. D. 1883; and for the erection of public buildings, streets, sewers, waterworks, and other permanent improvements, not to exceed twentyfive cents on the one hundred dollars valuation in any one year, and except as is in this Constitution otherwise provided; and the Legislature may also authorize an additional annual ad valorem tax to be levied and collected for the further maintenance of the public roads; provided that a majority of the qualified property tax paying voters of the county voting at an election to be held for that purpose shall vote such tax, not to exceed fifteen cents on the one hundred dollars valuation of the property subject to taxation in such county. And the Legislature may pass local laws for the maintenance of the public roads and highways, without the local notice required for special or local laws (art. VIII, sec. 9).

D. SPECIFIC PROVISIONS (MUNICIPALITIES)

1. PROPERTY TAXES

(a) Cities and towns having 5,000 or less population may be chartered by general law and have powers of taxation. No tax for any one year shall exceed 12 percent of the taxable property of such city or town:

Cities and towns having a population of five thousand or less may be chartered alone by general law. They may levy, assess, and collect such taxes as may be authorized by law, but no tax for any purpose shall ever be lawful for any one year which shall exceed one and one-half per cent of the taxable property of such city; and all taxes shall be collectible only in current money, and all licenses and occupation taxes levied, and all fines, forfeitures, and penalties accruing to said cities and towns shall be collectible only in current money (art. XI, sec. 4).

(b) Cities of over 5,000 inhabitants may adopt or amend their charters; they may be authorized to assess and collect taxes. No tax for any purpose for any one year shall exceed 22 percent of the value of the taxable property therein (art. XI, sec. 5; amended):

* said cities may levy, assess, and collect such taxes as may be authorized by law or by their charters; but no tax for any purpose shall ever be lawful for any one year which shall exceed two and one-half per cent of the taxable property of such city and no debt shall ever be created by any city

unless at the same time provision be made to assess and collect annually a sufficient sum to pay the interest thereon and creating a sinking fund of at least two per cent thereon (art. XI, sec. 5; amended).

* * *

(c) All property of railroads within the limits of an incorporated city or town shall bear its share of municipal taxation:

All property of railroad companies, of whatever description, lying or being within the limits of any city or incorporated town within this State, shall bear its proportionate share of municipal taxation, and if any such property shall not have been heretofore rendered, the authorities of the city or town within which it lies, shall have power to require its rendition, and collect the usual municipal tax thereon, as on other property lying within said municipality (VIII, sec. 5).

(d) For limit of rate on property values, see paragraph C-1-h. (e) Cities may levy a tax to provide for a sinking fund. (See par. C-1-g-(2).)

(f) Cities on the Gulf of Mexico may levy tax for sea walls and breakwaters and for sanitary purposes. (See par. C-1-d.)

(g) A city or town may constitute a separate school district and levy a tax for support and maintenance of a public institution of learning. (See par. E-1-c.)

E. SPECIFIC PROVISIONS (SCHOOL DISTRICTS)

1. PROPERTY TAXES

(a) Laws may be passed for the assessment and collection of taxes in school districts:

* * *

* * * and the Legislature may authorize an additional ad valorem tax to be levied and collected within all school districts * * * for the further maintenance of public free schools, and for the erection and equipment of school buildings therein; provided that a majority of the qualified property taxpaying voters of the district shall vote such tax not to exceed in any one year one ($1.00) dollar on the one hundred dollars valuation of the property subject to taxation in such district, but the limitation upon the amount of school district tax herein authorized shall not apply to incorporated cities or towns constituting separate and independent school districts, nor to independent or common school districts created by general or special law (art. VII, sec. 3).

(b) School districts are authorized to levy ad valorem taxes to provide a sinking fund for the retirement of bonds:

Every school district heretofore formed, whether formed under or by special act, and whether the territory embraced within its boundaries lies wholly within a single county or partly in two or more counties, is hereby declared to be, and from its formation to have been, a valid and lawful district.

Each such district is hereby authorized to, and shall annually levy and collect an ad valorem tax sufficient to pay the interest on all such bonds and to provide a sinking fund sufficient to redeem the same at maturity, not to exceed such a rate as may be provided by law under other provisions of this Constitution * * * (art. VII, sec. 3a).

(c) A city or town may constitute a separate school district:

The Legislature may constitute any city or town a separate and independent school district. And when the citizens of any city or town have a charter, authorizing the city authorities to levy and collect a tax for the support and maintenance of a public institution of learning, such tax may hereafter be levied and collected, if at an election, held for that purpose, two thirds of the taxpayers of such city or town shall vote for such tax (art. XI, sec. 10).

91655-38--10

UTAH

Constitutional Provisions Relating to Taxation as of June 30, 1937

(Constitution of 1895, as amended)

A. GENERAL PROVISIONS

1. LEGISLATIVE POWERS

(a) The legislative power is vested in the Legislature, and the legal voters of the State or fractional parts or subdivisions thereof have power with respect to initiative and referendum (art VI, sec. 1). (b) The Legislature shall levy an annual tax for State purposes and to pay the State debt:

* * * The Legislature shall provide by law for an annual tax sufficient, with other sources of revenue, to defray the estimated ordinary expenses of the State for each fiscal year. For the purpose of paying the State debt, if any there be, the Legislature shall provide for levying a tax annually, sufficient to pay the annual interest and to pay the principal of such debt, within twenty years from the final passage of the law creating the debt (art. XIII, sec. 2; amended 1936).

2. LEGISLATIVE LIMITATIONS

(a) Special or private laws are prohibited in the following cases: Assessing and collecting taxes; changing the law of descent or succession; regulating county and township affairs; incorporating cities, towns, or villages; and granting to an individual, association or corporation any special privileges, immunity, or franchise (art. VI, sec. 26).

*

*

(b) All laws of a general nature shall have uniform operation (art. I, sec. 24).

3. WIFE'S SEPARATE ESTATE

Real and personal estate of every female, acquired before marriage, and all property to which she may afterwards become entitled by purchase, gift, grant, inheritance, or devise, shall be and remain the estate and property of such female, and shall not be liable for the debts, obligations, or engagements of her husband, and may be conveyed, devised, or bequeathed by her as if she were unmarried (art. XXII, sec. 2).

B. SPECIFIC PROVISIONS (STATE)

1. PROPERTY TAXES

(a) Uniformity and valuation.-(1) A uniform and equal rate of assessment and taxation on property is required according to its value in money:

The Legislature shall provide by law a uniform and equal rate of assessment and taxation on all tangible property in the State, according to its value in money and shall prescribe by law such regulations as shall secure a just valuation for taxation of such property, so that every person and corporation shall pay a tax in proportion to the value of his, her, or its tangible property, provided that the Legislature may determine the manner and extent of taxing transient live stock and live stock being fed for slaughter to be used for human consumption. Intangible property may be exempted from taxation as property or it may be taxed in such manner and to such extent as the Legislature may

provide. Provided that if intangible property be taxed as property the rate thereof shall not exceed five mills on each dollar of valuation. When exempted from taxation as property, the taxable income therefrom shall be taxed under any tax based on incomes, but when taxed by the State of Utah as property, the income therefrom shall not also be taxed. The Legislature may provide for deductions, exemptions, and/or offsets on any tax based upon income. The personal income tax rates shall be graduated but the maximum rate shall not exceed six per cent of net income. No excise tax rate based upon income shall exceed four per cent of net income. The rate limitations herein contained for taxes based on income and for taxes on intangible property shall be effective until January 1, 1937, and thereafter until changed by law by a vote of the majority of the members elected to each house of the Legislature. * (Remainder of the section allocates revenue) (art. XIII, sec. 3; amended).

* *

(2) All tangible property shall be taxed according to its value: All tangible property in the State, not exempt under the laws of the United States, or under this Constitution, shall be taxed in proportion to its value, to be ascertained as provided by law (art. XIII, sec. 2, amended 1936).

* *

*

(3) A State tax commission and county equalization boards are provided for

*

* * * The State Tax Commission shall administer and supervise the tax laws of the State. It shall assess mines and public utilities and adjust and equalize the valuation and assessment of property among the several counties. It shall have such other powers of original assessment as the Legislature may provide. * * revise the tax levies and budgets of local governmental units, and equalize the assessment and valuation of property within the counties. The duties imposed upon the State Board of Equalization by the Constitution and laws of this State shall be performed by the State Tax Commission. In each county of this State there shall be a county board of equalization consisting of the Board of County Commissioners of said county. The County Boards of Equalization shall adjust and equalize the valuation and assessment of the real and personal property within their respective counties, subject to such regulation and control by the State Tax Commission as may be prescribed by law * * (art. XIII, sec. 11, as amended Nov. 4, 1930).

*

(4) Nonresidents to be taxed as residents:

* * The lands belonging to citizens of the United States residing without this State shall never be taxed at a higher rate than the lands belonging to residents of this State * * * (art. III, Ordinance Part Second).

(b) Corporate property.-Imposition of property taxes for State, county, school, and municipal purposes:

All corporations or persons in this State, or doing business herein, shall be subject to taxation for State, county, school, municipal or other purposes, on the real and personal property owned or used by them within the territorial limits of the authority levying the tax (art. XIII, sec. 10).

(c) Taxation of mines and mining property.

All metalliferous mines or mining claims, both placer and rock in place, shall be assessed as the Legislature shall provide: Provided, the basis and multiple now used in determining the value of metalliferous mines for taxation purposes and the additional assessed value of $5.00 per acre thereof shall not be changed before January 1, 1935, nor thereafter until otherwise provided by law. All other mines or mining claims and other valuable mineral deposits, including lands containing coal or hydrocarbons and all machinery used in mining and all property or surface improvements upon or appurtenant to mines or mining claims, and the value of any surface use made of mining claims, or mining property for other than mining purposes, shall be assessed as other tangible property (art. XIII, sec. 4, as amended 1930).

(d) Rate limitation.—(1) Tangible property:

The rate of taxation on tangible property shall not exceed on each dollar of valuation, two and four-tenths mills for general State purposes, two-tenths