of one mill for high school purposes, which shall constitute the high school fund; said fund shall be apportioned in the manner the legislature shall provide, to the school districts maintaining high schools, and such levy for district school purposes which together with the interest on the permanent school fund and such other funds as may be available for district school purposes, will raise annually an amount which equals $25.00 for each person of school age in the state as shown by the last preceding school census; the same to be distributed among the school districts according to the last preceding school census; and in addition an equalization fund which when added to other revenues provided for this purpose by the legislature shall be $5.00 for each person of school age as shown by the last preceding school census; said equalization fund shall be apportioned to the school districts in such manner as the legislature shall provide. Said rates shall not be increased unless a proposition to increase the same specifying the rate or rates proposed and the time during which the same shall be levied, be first submitted to a vote of such of the qualified electors of the State, as in the year next preceding such election, shall have paid a property tax assessed to them within the state, and the majority of those voting thereon shall vote in favor thereof, in such manner as may be provided by law (art. XIII, sec. 7, as amended 1930). (2) Intangible property: The rate on intangible property shall not exceed 5 mills on each dollar valuation (art. XIII, sec. 2; see par. B-1-a). (e) Exempt property.— The property of the United States, of the State, counties, cities, towns, school districts, municipal corporations and public libraries, lots with the buildings thereon used exclusively for either religious worship or charitable purposes, and places of burial not held or used for private or corporate benefit, shall be exempt from taxation. Water rights, ditches, canals, reservoirs, power plants, pumping plants, transmission lines, pipes, and flumes owned and used by individuals or corporations, or the individual members thereof, shall not be separately taxed as long as they shall be owned and used exclusively for such purposes. Power plants, power transmission lines, and other property used for generating and delivering electrical power, a portion of which is used for furnishing power for pumping water for irrigation purposes on lands in the State of Utah, may be exempted from taxation to the extent that such property is used for such purposes. These exemptions shall accrue to the benefit of the users of water so pumped under such regulations as the legislature may prescribe. The taxes of the indigent poor may be remitted or abated at such times and in such manner as may be provided by law. The legislature may provide for the exemption from taxation of homes, homesteads, and personal property not to exceed $2,000 in value for homes and homesteads, and $300 for personal property. Property not to exceed $3,000 in value, owned by disabled persons who served in any way in the military service of the United States or of the State of Utah and by the unmarried widows and minor orphans of such persons may be exempted as the legislature may provide (art. XIII, sec. 2, as amended 1936). 2. INCOME TAXES Nothing in this Constitution shall be construed to prevent the Legislature from providing a stamp tax, or a tax based on income, occupation, licenses, or franchises (art. XIII, sec. 12, as amended 1906; also art. XIII, sec. 3). An estate tax is imposed. 3. DEATH TAXES 4. FRANCHISE TAXES Franchise taxes are imposed (art. XIII, sec. 12, as amended 1906, quoted in par. B-2 above; see also art. 1, sec. 23). 5. LICENSE TAXES License taxes are imposed by the State and municipalities (art. XIII, sec. 12, as amended, 1906, as quoted in par. B-2 above). 6. POLL TAXES An annual poll tax of $2 is imposed for public road purposes. 1. PROPERTY TAXES (a) The legislature may vest the corporate authorities of counties and municipal corporations with power to tax: The Legislature shall not impose taxes for the purpose of any county, city, town, or other municipal corporation, but may, by law, vest in the corporate authorities thereof, respectively, the power to assess and collect taxes for all purposes of such corporation (art. XIII, sec. 5). (b) The counties and school districts are recognized as legal subdivisions of the State. A system of uniform county government is required to be established to provide for precinct and township organization (art. XI, secs. 1 and 4). (c) By an amendment to the constitution (1930), a county board of equalization was provided to adjust and equalize valuations and assessments of property within the respective counties (see par. B-1-a). D. SPECIFIC PROVISIONS (MUNICIPALITIES) 1. PROPERTY TAXES (a) The corporate authorities of municipalities may be vested with power to impose taxes for local purposes (art XIII, sec. 5; see par. C-1-a). But municipal powers may not be delegated to any commission, private corporation, or association (art. VI, sec. 29). (b) Municipal corporations are authorized to frame or adopt a charter for their own government, giving them authority to levy and collect taxes, including special assessments for benefits conferred, and to grant local public utility franchises (art. XI, sec. 5, as amended 1932). 2. ORGANIZATION Municipal corporations shall be established by general laws, which shall provide for the classification of cities and towns in proportion to population: Corporations for municipal purposes shall not be created by special laws; the Legislature, by general laws, shall provide for the incorporation, organization, and classification of cities and towns in proportion to population; which laws may be altered, amended, or repealed (art. XI, sec. 5). VERMONT Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1793, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS (a) The supreme legislative power of the State shall be exercised by the general assembly (ch. II, secs. 2 and 6). (b) The powers of the general assembly are as follows: * They may prepare bills and enact them into laws, redress grievances, grant charters of incorporation, subject to the provisions of section 65, constitute towns, boroughs, cities, and counties; and they shall have all other powers necessary for the Legislature of a free and sovereign State; but they shall have no power to add to, alter, abolish, or infringe any part of this Constitution (ch. 2, sec. 6). 2. LEGISLATIVE LIMITATIONS (a) Business corporations may only be organized under general laws: No charter of incorporation shall be granted, extended, changed, or amended by special law, except for such municipal, charitable, educational, penal, or reformatory corporations as are to be and remain under the patronage or control of the State; but the General Assembly shall provide by general laws for the organization of all corporations hereafter to be created. All general laws passed pursuant to this section may be altered from time to time or repealed (ch. II, sec. 65, amended 1913). (b) Legislation conferring special privileges or advantages is condemned: That government is, or ought to be, instituted for the common benefit, protection, and security of the people, nation, or community, and not for the particular emolument or advantage of any single man, family, or set of men, who are a part only of that community; * * (ch. I, art. 7). * B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Uniformity and valuation.-Every citizen is required to contribute his proportion to the expense of the protection of his constitutional rights: That every member of society hath a right to be protected in the enjoyment of life, liberty, and property, and therefore, is bound to contribute his proportion towards the expense of that protection, and yield his personal service when necessary, or an equivalent thereto, * (ch. I, art. 9). * * NOTE. There is no constitutional provision specifically requiring uniformity and equality of taxation. Various expressions throughout the Constitution, however, indicate it was intended the people of the State should be equally and justly dealt with. Moreover, from expressions of the state courts, it appears to be recognized that taxation should be uniform or equal as nearly as may be practical; that any discriminations should be reasonable, not an unjust insidious discrimination in favor of some to the prejudice of others. In one case, the Court says: * * * "the expenses of government shall be apportioned equally and not merely that exactions levied upon property shall be equal." And further it is held that the proportional contribution referred to in Article 9, for support of the government "was not intended to restrict the State as to methods of taxation that operate equally upon all its inhabitants, regardless of the variety and measure of advantages derived from its protection and regulation." (b) Requirements as to procedure in imposing State taxes.-(1) The purpose for which any tax is to be levied ought to appear evident: * and previous to any law being made to raise a tax, the purpose for which it is to be raised ought to appear evident to the Legislature to be of more service to community than the money would be if not collected (ch. I, art. 9). (2) Two-thirds of the number of representatives elected are required as a quorum for the consideration of the question of raising any State tax: * * The Representatives so chosen (a majority of whom shall constitute a quorum for transacting any other business than raising a State tax, for which two-thirds of the members elected shall be present) shall meet as required by section 7, and shall be styled in the House of Representatives: * (ch. II, sec. 14). (c) Exemptions.-There is no specific Constitutional provision as to exemptions. 2. INCOME TAXES Income taxes are imposed. 3. DEATH TAXES Both inheritance and estate taxes are imposed. 4. FRANCHISES Franchise taxes are imposed. 5. LICENSE TAXES License taxes are imposed by the State and municipalities. 6. POLL TAXES Poll taxes are imposed, collectible in the town of residence. C. SPECIFIC PROVISIONS (COUNTIES) 1. PROPERTY TAXES (a) The authority of the legislature to delegate powers to counties and municipalities is recognized: The power of suspending laws, or the execution of laws, ought never to be exercised but by the Legislature, or by authority derived from it, to be exercised in such particular cases as this constitution, or the Legislature shall provide for (ch. I, art. 15; see also par. A-1-b). (b) School taxes.— ** * * A competent number of schools ought to be maintained in each town and one or more grammar schools to be incorporated and properly supported in each county * * * (ch. II, sec. 64). D. SPECIFIC PROVISIONS (MUNICIPALITIES AND TOWNS) 1. The remarks in paragraph C as to counties apply to municipalities as well. 2. Under the Vermont system, towns, including villages and districts, are still units of taxation. VIRGINIA Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1902, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS (a) The legislative power is vested in a general assembly (art. IV, sec. 40). (b) The authority of the general assembly extends to all subjects of legislation not forbidden by the constitution: The authority of the General Assembly shall extend to all subjects of legislation, not herein forbidden or restricted; and a specific grant of authority in this Constitution upon a subject shall not work a restriction of its authority upon the same or any other subject. The omission in this Constitution of specific grants of authority heretofore conferred shall not be construed to deprive the General Assembly of such authority, or to indicate a change of policy in reference thereto, unless such purpose plainly appear (art. IV, sec. 63). 2. LEGISLATIVE LIMITATIONS The legislature shall not enact local, special, or private laws in the following cases: For the assessment and collection of taxes, except as to animals which the general assembly may deem dangerous to the farming interests; exempting property from taxation; creating private corporations, or amending, renewing, or extending the charters thereof; and granting to any private corporation, association, or individual any special or exclusive right, privilege, or immunity (art. IV, sec. 63). B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Uniformity and valuation.-(1) All property to be taxed; taxes to be uniform upon the same class of subjects. Taxable subjects may be defined and classified except as to classes expressly segregated in the constitution. The general assembly may segregate and specify upon what subjects State taxes and local taxes may be levied: All property, except as hereinafter provided, shall be taxed; all taxes, whether State, local, or municipal, shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws. The General Assembly may define and classify taxable subjects, and, except as to classes of property herein expressly segregated for either State or local taxation, the General Assembly may segregate the several classes of property so as to specify and determine upon what subjects State taxes and upon what subjects local taxes may be levied (art. XIII, sec. 168). |