(2) Real and personal property shall be assessed at its fair market value. Where the State levies upon a public service corporation a franchise, license, or other tax measured by its gross earnings, its real estate and tangible personal property shall be assessed by the State:

Except as hereafter provided, all assessments of real estate and tangible personal property shall be at their fair market value, to be ascertained as prescribed by law. So long as the State shall levy upon any public service corporation, other than a railway or a canal corporation, a State franchise, license,› or other tax, based upon or measured by its gross receipts, or gross earnings, or any part thereof, its real estate and tangible personal property shall be assessed by the State Corporation Commission, or other central State agency, in the manner prescribed by law (art. XIII, sec. 169).

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(b) Real estate and tangible personal property.—

No State property tax for State purposes shall be levied on real estate or personal property except the rolling stock of public service corporations.

Real estate and tangible personal property, except the rolling stock of public service corporations, are hereby segregated for, and made subject to, local taxation only, and shall be assessed or reassessed for local taxation in such manner and at such times as the general assembly has heretofore prescribed, or may hereafter prescribe by general laws (sec. 171, amended).

(c) Franchise taxes in certain cases may be imposed in lieu of taxes upon other property (sec. 170, amended; see par. B-4).

(d) Corporations and corporate property.-(1) No law shall suspend the right of the State or any political subdivision to tax corporations and corporate property:

* * * No general or special law shall surrender or suspend the right and power of the State, or any political subdivision thereof, to tax corporations and corporate property, except as authorized by article thirteen. No private corporation, association, or individual shall be specially exempted from the operation of any general law, nor shall its operation be suspended for the benefit of any private corporation, association, or individual (art. IV, sec. 64).

(2) Creation and supervision of corporations: Corporations shall be created by general laws (art. XII, sec. 154). A State Corporation Commission is provided for (sec. 155) through which shall be issued all charters for domestic and all licenses for foreign corporations (sec. 156). The commission's duties and powers are set out at length. The commission, however, may not impair the right of cities, towns, or counties to exercise legislative authority given them with regard to public service corporations under a county or municipal franchise (sec. 156). Fees are required to be paid the State upon the granting or amending of a charter for a domestic corporation, or a license to a foreign corporation to do business in the State (sec. 157). The legislature shall have the power to discriminate against foreign corporations if it deems it wise or expedient so to do (sec. 163).

(3) Railroad and canal corporations: Property of railroad and canal companies (except franchise and nontaxable shares of stock) shall be ascertained by the corporation, commission and taxed for State, county, municipal, and district purposes at the same rates imposed upon the real and personal property of natural persons:

The State Corporation Commission shall annually ascertain and assess, in the manner prescribed by law, the value of the roadbed and other real estate, rolling stock, and all other personal property whatsoever (except its franchise and the non-taxable shares of stock issued by other corporations) in this State, of each railway corporation, whatever its motive power, now or hereafter liable for taxation upon such property; the canal bed and other real estate, the boats and all other personal property whatsoever (except its franchise and the non-taxable shares of stock issued by other corporations) in

this State, of each canal corporation, empowered to conduct transportation; and subject to such segregation of property, if any, as is provided in section one hundred and seventy-one of this Constitution, such property shall be taxed for State, county, city, town, and district purposes in the manner prescribed by law, at such rates of taxation as may be imposed by them, respectively, from time to time, upon the real estate and personal property of natural persons (art. XIII, sec. 176).

(4) A franchise tax upon gross receipts may be in lieu of certain other taxes:

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Every such railway or canal corporation shall also pay an annual State franchise tax to be prescribed by law, upon the gross receipts * * * which, with the property taxes provided for shall be in lieu of all other taxes or license charges whatsoever upon the franchise of such corporation, provided, that nothing herein contained shall exempt such corporation from the annual fee required by section one hundred and fiftyseven of this Constitution, or from assessments for street and other public local improvements * * *; and, provided, further, that nothing herein contained shall annul or interfere with or prevent any contract or agreement by ordinance between street railway corporations and municipalities, as to compensation for the use of the streets or alleys of such municipalities by such railway corporations (art. XIII, sec. 177).

The amount of such franchise tax shall be equal to such per centum of the gross transportation receipts of such corporation for the year preceding the year for which the tax is levied, or the year for which the tax is levied, as may be prescribed by law, * * * (art. XIII, sec. 178).

(5) The legislature is given constitutional authority to change the present system of taxation for railroad and canal companies:

* the General Assembly shall have power to change the system of taxation as to the corporations therein mentioned to be administered by the State Corporation Commission, or other central State agency. If the said system of taxation shall, for any reason become inoperative the General Assembly shall have power to prescribe some other system in lieu thereof, and to provide how and by what agencies it shall be administered (art. XIII, sec. 181).

(e) Exemptions.-The property named herein shall be exempt from State and local taxation, including inheritance taxes:

Unless otherwise provided in this Constitution, the following property and no other shall be exempt from taxation, State and local, including inheritance taxes:

(a) Property owned directly or indirectly by the United States, the Commonwealth or any political subdivision thereof, and obligations of the Commonwealth

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(b) Buildings with land they actually occupy, and the furniture and furnishings therein and endowment funds * * * owned * * by churches or religious bodies, and wholly * * used for religious worship, or for the residence of the minister of any such church or religious body, together with the additional adjacent land reasonably necessary for the convenient use of any such building.

(c) Private or public burying grounds or cemeteries and endowment funds, lawfully held, for their care, provided the same are not operated for profit. (d) Property owned by public libraries, incorporated colleges or other incorporated institutions of learning, not conducted for profit, together with the endowment funds thereof not invested in real estate. But this provision shall apply only to property primarily used for literary, scientific, or educational purpose or purposes incidental thereto. It shall not apply to industrial schools which sell their product to other than their own employees or students.

(e) Real estate belonging to, actually and exclusively occupied and used by, and personal property, including endowment funds, belonging to Young Men's Christian Associations, and other similar religious associations, orphan or other asylums, reformatories, hospitals and nunneries, conducted not for profit, but exclusively as charities, also parks or playgrounds held by trustees for the perpetual use of the general public.

(f) Buildings with the land they actually occupy, and the furniture and furnishings therein, belonging to any benevolent or charitable association and

used exclusively for lodge purposes or meeting rooms by such association, together with such additional adjacent land as may be necessary for the convenient use of the building for such purposes; and

(g) Property of the Association for the Preservation of Virginia Antiquities, the Confederate Memorial Literary Society, the Mount Vernon Ladies' Association of the Union, the Virginia Historical Society, the Thomas Jefferson Memorial Foundation, Incorporated, the posts of the American Legion, and such other similar organizations or societies as may be prescribed by law.

Obligations issued by counties, cities, or towns may be exempted by the authorities of such localities from local taxation (art. XIII, sec. 183).

2. INCOME TAXES

The general assembly may levy a tax on incomes in excess of six hundred dollars per annum; * * * (sec. 170; Amended).

3. DEATH TAXES

An inheritance tax is imposed, as is an estate tax, where it is greater than the aggregate of the inheritance taxes.

*

4. FRANCHISE TAXES

Franchise taxes may be imposed in cetrain cases in lieu of property taxes and of taxes imposed on shares of stock in corporations: * and may impose state franchise taxes, and in imposing a franchise tax may, in its discretion, make the same in lieu of taxes upon other property, in whole or in part, of a transportation, industrial, or commercial, corporation. Whenever a franchise tax shall be imposed upon a corporation doing business in this state, or whenever all the capital, however invested, of a corporation chartered under the laws of this state, shall be taxed, the shares of stock issued by any such corporation shall not be further taxed (sec. 170, amended; see also par. B-d. (4)).

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5. LICENSE TAXES

A license tax is authorized upon any business which cannot be reached for ad valorem taxes:

** * may levy a license tax upon any business which can not be reached by the ad valorem system; * * * (sec. 170).

6. POLL TAXES

(a) A State capitation tax, not to exceed $1.50 per annum, is required to be levied. Counties and municipalities may be authorized to levy an additional tax not to exceed $1 per annum (art. XIII, sec. 173). (b) Payment of State poll tax is required to qualify electors:

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First. That he has personally paid to the proper officer all State and poll taxes legally assessed or assessable against him for the three years next preceding that in which he offers to register; or, if he come of age at such time that no poll tax shall have been assessable against him for the year preceding the year in which he offers to register, has paid one dollar and fifty cents, in satisfaction of the first year's poll tax assessable against him; * * (art. II, sec. 20).

(c) Exemption from payment of poll tax is provided for veterans of the Civil War and their wives or widows:

No person, nor the wife or widow of such person, who, during the late war between the States, served in the army or navy of the United States, or of the

Confederate States, or of any State of the United States, or of the Confederate States, shall at any time be required to pay a poll tax as a prerequisite to the right to register or vote. The collection of the State poll tax assessed against anyone shall not be enforced by legal process until the same has become three years past due (art. II, sec. 22).

C. SPECIFIC PROVISIONS (COUNTIES)

1. PROPERTY TAXES

(a) County boards of supervisors and city councils may be given powers of local and special legislation:

The General Assembly may, by general laws, confer upon the boards of supervisors of counties, and the councils of cities and towns, such powers of local and special legislation as it may, from time to time, deem expedient, not inconsistent with the limitations contained in this Constitution (art. IV, sec. 65).

(b) Magisterial districts are provided for in the several counties, and the supervisors thereof shall constitute the county boards of supervisors, who shall levy county and district levies:

The supervisors of the districts shall constitute the board of supervisors of the county, which shall meet at stated periods, and at other times as often as may be necessary, lay the county and district levies, pass upon all claims against the county, subject to such appeal as may be provided by law, and perform such duties as may be required by law (art. IV, sec. 111).

(c) School taxes. Each county, city, town, and separate school district is authorized to levy a property tax for school purposes:

Each county, city, or town, if the same be a separate school district, and school district is authorized to raise additional sums by a tax on property, subject to local taxation, not to exceed in the aggregate in any one year a rate of levy to be fixed by law, to be apportioned and expended by the local school authorities of said counties, cities, towns, and districts in establishing and maintaining such schools (art. IX, sec. 136).

(d) Real estate and tangible personal property.—Real estate and tangible personal property is subject to local taxation only (sec. 171, par. B-1-b).

(e) Corporations and corporate property. (See par. B-1-d.) (f) Coal and mineral lands.-Coal and mineral lands shall be assessed for local taxation as the general assembly may provide:

Coal and other mineral lands shall be assessed or reassessed for local taxation in such manner and at such times as the General Assembly has heretofore prescribed, or may hereafter prescribe by general laws (art. XIII, sec. 172). (g) Exemption of manufacturers.-Counties and municipalities may be authorized to exempt manufacturing establishments from local taxation for a period of 5 years.

The General Assembly may, by general law, authorize the governing bodies of cities, towns, and counties to exempt manufacturing establishments and works of internal improvement from local taxation for a period not exceeding five years, as an inducement to their location (art. XIII, sec. 189).

D. SPECIFIC PROVISIONS (MUNICIPALITIES)

1. PROPERTY TAXES

(a) City councils may be given powers of local and special legislation. (See par. C-1 (a).)

(b) School taxes.-Municipalities may levy a tax on property for school purposes. (See par. C-1-c.)

(c) Real estate and tangible personal property is subject to local taxation only. (See par. B-1-b.)

(d) Land added to corporate limits.-Taxation may be imposed for a period of years upon lands added to the corporate limits of a municipality at a rate lower than is imposed for similar lands within the corporate limits:

* * * The General Assembly may allow a lower rate of taxation to be imposed for a period of years by a city or town upon land added to its corporate limits, than is imposed on similar property within its limits at the time such land is added (art. XIII, sec. 169).

(e) Coal and mineral lands shall be assessed for purposes of local taxation. (See par. C-1-f.)

(f) Special assessments.-Cities and towns may impose taxes on abutting property for certain local improvements:

* * * No city or town shall impose any tax or assessment upon abutting owners for street or other public local improvements, except for making and improving the walkways upon then existing streets; and improving and paving then existing alleys, and for either the construction, or the use of sewers; and the same when imposed, shall not be in excess of the peculiar benefits resulting therefrom to such abutting land owners. Except in cities and towns, no such taxes or assessments, for local public improvement, shall be imposed on abutting land owners (art. 170, amended 1927).

2. EXEMPTIONS

Cities and towns may be authorized to exempt manufacturing establishments from taxation. (See par. C-1-g.)

3. ORGANIZATION OF CITIES AND TOWNS

General laws shall be enacted for the organization and government of cities and towns except under certain conditions specified. The councils thereof exercise legislative authority therein. Special forms of organization and government may be authorized; officers and their duties are prescribed for. Their rights as to granting franchises are set out, and which may be further restricted by the legislature (art. VIII).

WASHINGTON

Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1889, as amended)

A. GENERAL PROVISIONS

1. LEGISLATIVE POWERS

The legislative power of the State is vested in the legislature, the power of initiative and referendum being reserved (art. II, sec. 1; amended 1912).

2. LEGISLATIVE LIMITATIONS

(a) The Legislature is prohibited from enacting private or special laws in the following cases: For assessment or collection of taxes, or for extending the time of collection thereof; for granting cor