(2) sleeping car, dining car, drawing-room car, and palace car companies, refrigerator, oil stock, fruit and other car-loaning and other car companies operating upon the railroads in the State, (3) companies doing express business on any railroad, steamboat, vessel, or stage line in this State, (4) telegraph and telephone companies, (5) companies engaged in the transmission or sale of gas or electricity, shall be assessed annually by the State Board of Equalization, at the actual value of such property.

All property so assessed by said board shall be subject to taxation to the same extent and in the same manner as other property.

All companies herein mentioned and their franchises, other than insurance companies and their franchises, shall be taxed in the same manner and at the same rates as mercantile, manufacturing and business corporations, and their franchises are taxed pursuant to section 16 of this article; provided, that nothing herein shall be construed to release any company mentioned in this section from the payment of any amount agreed to be paid or required by law to be paid for any special privilege or franchise granted by any political subdivision or municipality of this State; provided further that no excise, or income tax or any other form of tax or license charge shall be levied or assessed upon or collected from the companies, or any of them, mentioned in the first paragraph of this section, in any manner or form, different from, or at a higher rate than that imposed upon or collected from mercantile, manufacturing and business corporations doing business within this State (art. XIII, sec. 14).

* *

(3) Taxation of insurance companies:

* * * Every insurance company or association doing business in this State shall annually pay to the State a tax, assessed by the State Board of Equalization, of two and six-tenths per centum upon the amount of the gross premiums other than gross premiums from ocean marine insurance, received upon its business done in this State, less return premiums and reinsurance in companies or associations authorized to do business in this State; provided, that there shall be deducted from said two and six-tenths per centum upon the gross premiums the amount of any taxes paid by such companies on real estate owned by them in this State. This tax shall be in lieu of all other taxes and licenses, State, county, and municipal, upon such companies or their property, except taxes upon their real estate; provided, that when by the laws of any other State or country, any taxes, fines, penalties, licenses, fees, deposits of money, or of securities, or other obligations or prohibitions, imposed on insurance companies, of the State, doing business in such other State or country, or upon their agents therein, in excess of such taxes, fines, penalties, licenses, fees, deposits of money, or of securities, or other obligations or prohibitions, imposed upon insurance companies of such other State or country so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind may be imposed by the Legislature upon insurance companies of such other State or country doing business in this State.

Every insurer transacting the business of ocean marine insurance in this State shall annually pay to the State a tax, assessed by the State Board of Equalization, measured by that proportion of the underwriting profit of such insurer from such insurance written in the United States, which the gross premiums of the insurer from such insurance written in this State bear to the gross premiums of said insurer from such insurance written within the United States, at the rate of five per centum, which tax shall be in lieu of all other taxes and licenses, State, county, and municipal, upon such insurer, except taxes upon real estate, and such other taxes as may be assessed or levied against such insurer on account of any other class of insurance written by it. The Legislature shall define the terms "ocean marine insurance" and "underwriting profit," shall provide for the assessment, levy, collection, and enforcement of said tax.

The Legislature, two-thirds of all the members elected to each of the two houses voting in favor thereof, may by law change the rate or rates of taxes herein imposed upon insurance companies.

The word "companies" as used in this section shall include persons, partnerships, joint stock associations, companies and corporations.

Nothing herein contained shall be construed to subject to assessment and taxation property which is exempt from taxation under other provisions of this Constitution (art. XIII, sec. 14, as amended June 27, 1933).

(4) Taxation of banks and banking:

1. (a) Banks, including national banking associations, located within the limits of this State, shall annually pay to the State a tax according to or measured by their net income, which shall be in lieu of all other taxes and licenses, State, county, and municipal, upon such banks, or the shares thereof, except taxes upon their real property, at the rate to be provided by law.

(b) The Legislature may provide by law for any other form of taxation now or hereafter permitted by the Congress of the United States respecting national banking associations; provided, that such form of taxation shall apply to all banks located within the limits of this State.

2. The Legislature may provide by law for the taxation of corporations, their franchises, or any other franchises, by any method not prohibited by this Constitution or the Constitution or laws of the United States.

3. Any tax imposed pursuant to this section must be under an act passed by not less than two-thirds vote of all the members elected to each of the two Houses of the Legislature (art. XIII, sec. 16, as amended June 27, 1933).

(e) Limitation of appropriations to be raised by property taxes.Not more than 25 percent of the total appropriations from all funds of the State shall be raised by means of taxes on real and personal property according to the value thereof:

Appropriations from the general fund of the State for any biennium, exclusive of appropriations for the support of the public school system, shall not exceed by more than five per centum the appropriations from such fund, exclusive of such public school appropriations, for the preceding biennium unless two-thirds of all members elected to each house of the Legislature vote in favor thereof; provided, that no amount appropriated in excess of such five per centum shall become a part of the base for determining the maximum appropriation for a succeeding biennium. Should the appropriations in the budget act for any biennium exceed the limitations herein prescribed, and such budget act be not passed by such two-thirds vote, the several items of appropriation therein shall be deemed reduced by that percentage which the excess amount of appropriation bears to the total appropriation. Should the prescribed limit for any biennium be exceeded by reason of any other appropriation or appropriations from the general fund, then the appropriation first passed by the Legislature without such two-thirds vote, which exceeds such prescribed limitation, shall be deemed reduced by the amount of such excess, and all other subsequent appropriations from the general fund not passed by such two-thirds vote shall be void. Nothing herein contained shall prevent the Governor from vetoing any bills or reducing any appropriation therein or any appropriation reduced as herein provided.

Not more than twenty-five per cent of the total appropriations from all funds of the State shall be raised by means of taxes on real and personal property according to the value thereof (art. IV, sec. 34a). (New section adopted June 27, 1933.)

(f) Limitation of tax lien.-Provision is made that the lien of every tax shall cease to exist and be conclusively presumed to have been paid after 30 years, unless the property subject thereto has been legally sold for the payment of said tax (art. IV, sec. 31-b, amended 1932). (There are two sections bearing this same number.)

(g) Computation of taxes upon unsecured property.—

The taxes levied for any current tax year upon personal property and assessments upon possession of, claim to, or right to the possession of land and upon taxable improvements located on land exempt from taxation, which are not a lien upon land sufficient in value to secure their payment, shall be based upon the rates for taxes levied for the preceding tax year upon property of the same kind where the taxes were a lien upon land sufficient in value to secure the payment thereof. Nothing in this section shall be construed to prohibit the equalization each year of the assessment on such property in the manner now or hereafter provided by law (art. XIII, sec. 9a, amended 1936).

(h) Exemptions.-(1) The following property is exempt from taxation:

(a) That used for free libraries and museums; (b) exclusively for public schools; (c) such as may belong to the United States, to the State and its political subdivisions, except such as is located outside the subdivisions owning the same as were subject to taxation at the time of the acquisition thereof; (d) but no improvements constructed by any subdivision shall be subject to taxation; and (e) growing crops (art. XIII, sec. 1).

(2) By subsequent amendments to the same section, other specific exemptions are provided (a) for colleges and burial grounds not operated for profit; (b) for veterans and members of their families; (c) buildings and property used exclusively for religious purposes or orphan asylums; (d) bonds of State and municipal corporations; (e) certain vessels registered in the State; (f) property of householders to the value of $100 (art. XIII, sec. 101⁄2); and (g) certain fruit trees and grape vines and immature forest trees (art. XIII, sec. 1234).

2. INCOME TAX

Income taxes are imposed on individuals and corporations:

Income taxes may be assessed to and collected from persons, corporations, joint stock associations, or companies resident or doing business in this state, or any one or more of them, in such cases and amounts, and in such manner, as shall be prescribed by law (art. XIII, sec. 11).

3. DEATH TAXES

Both an inheritance and estate tax is imposed.

4. FRANCHISE TAXES

(a) Franchise taxes are authorized by the State and local subdivisions (art. XIII, secs. 1, 14, and 16, par. B 1-d).

(b) The right to collect for the use of water supplied to local subdivisions or the inhabitants thereof is declared a franchise (art. XIV, sec. 2).

5. LICENSE TAXES

License or occupational taxes are imposed by the State and counties and cities.

6. POLL TAXES

A poll tax of not less than $5, with certain exceptions, is imposed (art. XIV, sec. 12).

NOTE.

C. SPECIFIC PROVISIONS (COUNTIES AND OTHER POLITICAL

SUBDIVISIONS)

The constitutional provisions with respect to organization and government of counties, cities, and other subdivisions of the State are too elaborate to incorporate more than a bare outline in this report. The major taxing provisions we have included under this section C.

To these may be added the provisions that corporations for municipal purposes must be created by general laws. That city and county governments may be consolidated; that any county may frame a charter for its own government; that school districts may be consolidated; that a city may frame a charter for its own government. There are specific provisions as to certain cities and counties. All the foregoing powers are to be exercised under prescribed conditions. (Generally, see art. XI.)

1. PROPERTY TAXES

(a) Assessment.-Unless provided otherwise in the constitution, all property shall be assessed in the local subdivisions having tax jurisdiction (art. XIII, sec. 10).

(b) Imposition of taxes.-The legislature may not impose taxes upon municipal corporations for local purposes, but may vest the local authorities with such power:

* * * The legislature shall have no power to impose taxes upon counties, cities, towns, or other public or municipal corporations, or upon the inhabitants or property thereof, for county, city, town, or other municipal purposes, but may, by general laws, vest in the corporate authorities thereof the power to assess and collect taxes for such purposes. * * (art. XI, sec. 12, amended).

*

(c) School taxes. The legislature is required to provide for levying of taxes by the boards of supervisors of each county, and city and county, for school purposes therein, including school district taxes (art. IX, sec. 6).

2. DELEGATION OF LOCAL POWERS PROHIBITED

Not applicable to irrigation, reclamation, and drainage districts: The legislature shall not delegate to any special commission, private corporation, company, association, or individual any power to make, control, appropriate, supervise, or in any way interfere with any county, city, town, or municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or assessments or perform any municipal function whatever, except that the legislature shall have power to provide for the supervision, regulation, and conduct, in such manner as it may determine, of the affairs of irrigation districts, reclamation districts, or drainage districts, organized or existing under any law of this state (art. XI, sec. 13).

COLORADO

Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1876, as amended)

A. GENERAL PROVISIONS

1. LEGISLATIVE POWERS

(a) The legislative power is vested in the general assembly, but reserved to the people by initiative and referendum, and is extended to cities, towns, and municipalities (art. V, sec. 1).

(b) The general assembly is required to provide an annual tax, sufficient, with other resources, to defray the estimated expenses of the State government for each fiscal year (art. X, sec. 2).

*

2. LEGISLATIVE LIMITATIONS

Special or local laws are prohibited:

*

regulating county or township affairs;

*

changing the law of descent; * * * granting to any corporation, association, or individual any special or exclusive privilege, immunity, or franchise whatever. (art. V, sec. 25).

3. WATER RIGHTS

*

Water of natural streams, not heretofore (1876) appropriated, is declared to be public property:

The water of every natural stream, not heretofore appropriated, within the State of Colorado, is hereby declared to be the property of the public, and the same is dedicated to the use of the people of the State, subject to appropriation as hereinafter provided (art. XVI, sec. 5).

4. ALIEN PROPERTY RIGHTS

(See par. B. 1-a (3)

B. SPECIFIC PROVISIONS (STATE)

1. PROPERTY TAXES

(a) Equality and valuation.—(1) Taxes are required to be uniform within the territorial limits of the authority levying the tax: All taxes 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, which shall prescribe such regulations as shall secure a just valuation for taxation of all property, real and personal: Provided, That the personal property of every person being the head of a family to the value of $200 shall be exempt from taxation. Ditches, canals, and flumes owned and used by individuals or corporations, for irrigating land owned and used by individuals or corporations, or the individual members thereof, shall not be separately taxed so long as they shall be owned and used exclusively for such purposes (art. X, sec. 3).

(2) A State and county board of equalization is provided, and the boards shall equalize to the end that all taxable property shall be assessed at its full cash value.

* * *

There shall be a board of equalization for the State The duty of the said board of equalization shall be to adjust, equalize, raise, or lower the valuation of real and personal property of the several counties of the State, and the valuation of any item or items of the various classes of such property.

There shall be in each county of this State a county board of equalization, * * ** The duty of the county board of equalization shall be to adjust, equalize, raise, or lower the valuation of real and personal property within their respective counties, subject to revision, change, and amendment by the state board of equalization.

* * * The State board of equalization and the county board of equalization shall equalize to the end that all taxable property in the State shall be assessed at its full cash value and also perform such other duties as may be prescribed by law: Provided, however, That the State board of equalization shall have no power of original assessment (art. X, sec. 15).

(3) Alien residents of Colorado are given the same property rights as native citizens:

Aliens, who are or may hereafter become bona fide residents of this State, may acquire, inherit, possess, enjoy, and dispose of property, real and personal, as native citizens (art. II, sec. 27).