C. SPECIFIC PROVISIONS (COUNTIES)

1. PROPERTY TAXES

(a) The system in effect prior to the present constitution is continued, and the counties assess and collect taxes for State and local purposes.

(b) Counties may not be denied the right to levy taxes upon corporate property (art. 4, sec. 112; see par. B-1-a).

(c) School taxes.-Counties and school districts are required to maintain common schools:

There shall be a county common-school fund, which shall consist of the poll-tax, to be retained in the counties where the same is collected. and a state common-school fund, to be taken from the general fund in the state treasury, which together shall be sufficient to maintain the common schools for the terin of four months in each scholastic year. But any county or separate school district may levy an additional tax to maintain its schools for a longer time than the term of four months * * * (art. 8, sec. 206).

D. SPECIFIC PROVISIONS (MUNICIPALITIES)

1. PROPERTY TAXES

The powers of municipal corporations shall be restricted: Provision shall be made by general laws to prevent the abuse by cities, towns, and other municipal corporations of their powers of assessment, taxation, borrowing money, and contracting debts (art. IV, sec. 80).

2. ORGANIZATION

Cities and towns must be created under general laws under which local and private interests shall be provided for and protected (art. 4, sec. 88).

3. EXEMPTION OF CERTAIN ENTERPRISES FROM TAXATION

Provision shall be made by general laws whereby cities and towns may be authorized to aid and encourage the establishment of manufactories, gasworks, waterworks, and other enterprises of public utility other than railroads, within the limits of said cities or towns, by exempting all property used for such purposes from municipal taxation for a period not longer than ten years (art. 7, sec. 192).

E. LEVEE DISTRICTS

1. CREATION AND ORGANIZATION

A levee system shall be maintained in the State as provided in this article (art. 11, sec. 227).

Two districts are provided (sec. 228), and a board of levee commissioners (secs. 229-230-231) whose duties and powers are prescribed (secs. 232 and 233).

2. IMPOSITION OF TAXES

(a) The legislature shall impose a uniform tax for levee purposes: The legislature shall impose for levee purposes, in addition to the levee taxes heretofore levied or authorized by law, a uniform tax of not less than two nor more than five cents an acre per annum upon every acre of land now or here

after embraced within the limits of either or both of said levee districts. The taxes so derived shall be paid into the treasury of the levee board of the district in which the land charged with the same is situated; and the legislature, by the act imposing said tax, shall authorize said levee boards to fix the annual rate of taxation per acre within the limits aforesaid and thereby require said levee boards, whenever a reduction is made by them in their other taxes, to make a proportionate reduction in the acreage tax hereinbefore mentioned; but said acreage tax shall not be reduced below two cents an acre per annum; and all reductions in such taxation shall be uniform in each of said districts; but the rate of taxation need not be the same in both of them; and such specific taxes shall be assessed on the same assessment roll, and collected under the same penalties, as ad valorem taxes for levee purposes, and shall be paid at the same time with the latter. And no levee board shall ever be permitted to buy lands when sold for taxes; but the state shall have a prior lien for taxes due thereto. The legislature may provide for the discontinuance of the tax on cotton but not in such manner as to affect outstanding bonds based on it, and on the discontinuance of the tax on cotton, shall impose another tax in lieu thereof; but the legislature may repeal the acreage tax required to be levied hereby after the first day of January, A. D. 1895 (art 11, sec. 236).

(b) Full power given to legislature to provide levee taxation:

The legislature shall have full power to provide such system of taxation for said levee districts as it shall, from time to time, deem wise and proper (art. 11, sec. 237).

MISSOURI

Constitutional Provisions Relating to Taxation as of June 30, 1937

(Constitution of 1875, as amended)

A. GENERAL PROVISIONS

1. LEGISLATIVE POWERS

(a) The legislative power of the State is vested in the general assembly, and the power of initiative and referendum is reserved:

The legislative power, subject to the limitations herein contained, shall be vested in "The General Assembly of the State of Missouri" (art. IV, sec. 1, and art. IV, sec. 57, amended).

(b) The taxing power may be exercised by the general assembly for State purposes, and by counties and municipal corporations under legislative authority:

The taxing power may be exercised by the General Assembly for State purposes, and by counties and other municipal corporations, under authority granted to them by the General Assembly, for county and other corporate purposes (art. X, sec. 1).

2. LEGISLATIVE LIMITATIONS

(a) The general assembly shall not pass any local or special law— Regulating the affairs of counties, cities, townships, wards, or school districts * Exempting property from taxation.

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Granting to any corporation, association, or individual any special or exclusive right, privilege, or immunity, or to any corporation, association, or individual the right to lay down a railroad track * *

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Nor indirectly enact such special or local law by the partial repeal of a general law (art. IV, sec. 53).

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(b) The general assembly shall not impose taxes for county and other local purposes (art. X, sec. 10; see par. C-1-a).

(c) Power to tax corporations is not to be surrendered:

The power to tax corporations and corporate property shall not be surrendered or suspended by act of the General Assembly (art. X, sec. 2).

B. SPECIFIC PROVISIONS (STATE)

1. PROPERTY TAXES

(a) Uniformity and valuation.-(1) Taxes must be uniform upon the same class of subjects, and they must be levied and collected under general laws:

Taxes may be levied and collected for public purposes only. They shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax, and all taxes shall be levied and collected by general laws (art. X, sec. 3).

(2) Property shall be taxed in proportion to its value, motor vehicles being subject to license taxes:

All property subject to taxation shall be taxed in proportion to its value: Provided, That all motor vehicles subject to taxation in this State shall be subject to license taxes, the rate for State and municipal purposes to be fixed by the General Assembly * * (art. X, sec. 4, amended 1922).

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(3) A State board of equalization is created:

* * * The duty of said board shall be to adjust and equalize the valuation of real and personal property among the several counties in the State (art. X, sec. 18).

(b) Taxation of corporations and corporate property.-(1) All property of business corporations must be taxed (art. X, sec. 2; see sec. A-2-c).

(2) All business corporations are required to pay taxes on capital stock, and increase thereof, in addition to franchise taxes (art. X, sec. 21).

(3) Railway corporations are subject to taxation on real and personal property, on gross earnings, net earnings, capital stock, and franchises (art. X, sec. 5).

(c) School taxes.-(1) Requirement of a free public school system: The legislature shall establish and maintain free public schools for gratuitous instruction (art. XI, sec. 1) and in case the fund provided be insufficient to sustain a free school in every school district for at least 4 months in every year, the legislature may provide for the deficiency (art. XI, sec. 7).

(2) Tax to pay certificates of indebtedness to the public school fund and the seminary fund: Certificates of the State indebtedness to the above funds are confirmed as State obligations and renewals of the indebtedness are authorized:

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Whenever the State bonded indebtedness is extinguished there shall be levied and collected * * * an annual tax not to exceed three cents on the hundred dollar valuation, to pay the accruing interest on all the certificates of indebtedness, the proceeds of which tax shall be paid * * out for the specific purposes herein mentioned (art. X, sec. 26).

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(d) Taxes for retirement of bonds issued for purposes of relief.— Article IV, sections 44 and 47, restrict the power of the State and subdivisions in contracting debts and issuing bonds, but amendments to these sections adopted in 1920-36 have authorized special taxes for

the retirement of bonds issued for assistance to soldiers and sailors, pensions for the deserving blind and to aged persons, and also for the relief of firemen and their families. Amendments are pending reducing the pension age to 65 years and for a tax to provide county hospitals.

(e) Motor vehicle and fuel taxes.-The State highway amendment provides

For a period of ten years after the adoption hereof, the General Assembly shall have no power to levy and collect state registration fees, license taxes, or other taxes on motor vehicles (except the property tax on motor vehicles and state license fees or taxes on motor vehicle common carriers), or state taxes on the sale or use of motor vehicle fuels in excess of the rates fixed by law at the time this amendment is adopted, except that in the event the proceeds from such registration fees, license taxes, or other taxes on motor vehicles (except the property tax on motor vehicles and state license fees or taxes on motor vehicle common carriers) and state taxes on the sale or use of motor vehicle fuels shall not be sufficient to produce funds requisite to pay the costs and expenses herein authorized and for the payments to sinking fund, for interest and for the proper maintenance of state highways as herein provided, then the General Assembly may increase the rates of such registration fees or license taxes on motor vehicles or taxes on the sale or use of motor vehicle fuels to an amount sufficient to provide for such payments and the property maintenance of state highways in order to avoid the levy of a direct tax on property in the State to meet such deficiencies. * * * (art. IV, sec. 44).

(f) Rate limitation.—

The State tax on property, exclusive of the tax necessary to pay the bonded debt of the State, shall not exceed twenty cents on the hundred dollars valuation; and whenever the taxable property of the State shall amount to nine hundred million dollars, the rate shall not exceed fifteen cents (art. X, sec. 8). (g) Exemptions.-The following constitutional exemptions are provided:

(1) All property of the State and corporate subdivisions, cemeteries, buildings, and lots of certain size used exclusively for religious worship, for schools, or for purely charitable purposes, and such real or personal property used exclusively for agricultural or horticultural purposes may be exempted from taxation (art. X, sec. 6).

(2) Other exemptions are void:

All laws exempting property from taxation, other than the property above enumerated, shall be void (art. X, sec. 7).

2. INCOME TAXES

An income tax is imposed on individuals and corporations.

3. DEATH TAXES

Inheritance and estate taxes are imposed.

4. FRANCHISE TAXES

Franchise taxes are imposed.

No corporation, except that organized for benevolent, religious, scientific, or educational purposes may be formed unless the incorporators pay fees fixed according to the amount of capital stock, and a further tax on franchises is authorized:

No corporation, company, or association, other than those formed for benevolent, religious, scientific, or educational purposes, shall be created or organized under the laws of this State, unless the persons named as corpora

tors shall, at or before the filing of the articles of association or incorporation, pay into the State treasury fifty dollars for the first fifty thousand dollars or less of capital stock, and a further sum of five dollars for every additional ten thousand dollars of its capital stock. And no such corporation, company, or association shall increase its capital stock without first paying into the treasury five dollars for every ten thousand dollars of increase: Provided, That nothing contained in this section shall be construed to prohibit the General Assembly from levying a further tax on the franchises of such corporation (art. X, sec. 21).

5. LICENSE TAXES

License taxes are generally imposed.

6. POLL TAXES

A poll tax, not to exceed $4, is imposed and allocated to road C. SPECIFIC PROVISIONS (COUNTIES)

purposes.

1. PROPERTY TAXES

(a) Power to tax.-The Legislature may vest in the corporate authorities thereof power to assess and collect such taxes:

The General Assembly shall not impose taxes upon counties, cities, towns, or other 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. X, sec. 10; see also art. X, sec. 1).

(b) Taxes for local purposes.-Taxes for county and municipal purposes may be levied on all subjects: For county purposes, the rate shall not exceed 35 cents to 50 cents on the hundred dollars valuation:

Taxes for county, city, town, and school purposes may be levied on all subjects and objects of taxation; but the valuation of property therefor shall not exceed the valuation of the same property in such town, city, or school district for State and county purposes. For county purposes the annual rate on property, in counties having six million dollars or less, shall not, in the aggregate, exceed fifty cents on the hundred dollars valuation; in counties having six million dollars and under ten million dollars said rate shall not exceed forty cents on the hundred dollars valuation; in counties having ten million dollars and under thirty million dollars said rate shall not exceed fifty cents on the hundred dollars valuation; and in counties having thirty million dollars or more said rate shall not exceed thirty-five cents on the hundred dollars valuation (art. X, sec. 11).

(c) Road taxes.-(1) A special road tax may be authorized by the majority of the qualified voters of any road district not to exceed 50 cents on the one hundred dollars valuation of all property therein.

In addition to the taxes now authorized to be levied for county purposes, under and by virtue of section 11 of article 10 of the Constitution of this State, and in addition to the special levy for road and bridge purposes authorized by section 22 of article X of the Constitution of this State, it shall be the duty of the county court of any county in this State, when authorized so to do by a majority of the qualified voters of any road district * to make a levy of not to exceed fifty cents on the one hundred dollars valuation on all property within such district, to be collected in the same manner as state and county taxes are collected and placed to the credit of the road district authorizing such special levy (art. X, sec. 23).

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