C. SPECIFIC PROVISIONS (COUNTIES) 1. PROPERTY TAXES The schedule, article XXII, continues the laws of the territory prior to the adoption of the Constitution to remain in effect. These provided for local government of the political subdivisions of the State. The preexisting counties are recognized and continued and are required to be classified (arts. IV, IX, and X). Their right to contract debts and levy taxes under Legislative authority is also recognized (art. IX, secs. 10 and 12). D. SPECIFIC PROVISIONS (MUNICIPALITIES) The paragraph next above, (C), applies also to cities, towns, and villages. NEW YORK Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1894, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS The legislative power is vested in the senate and assembly (art. III, sec. 1). 2. LEGISLATIVE LIMITATIONS The legislature shall not pass a private or local bill in the following cases: Incorporating villages; granting any private corporation, association, or individual any exclusive privilege, immunity, or franchise whatever; and granting an exemption from taxation on real or personal property. The legislature shall pass general laws providing for the cases enumerated in this section and for all other cases which, in its judgment, may be provided for by general laws (art. III, sec. 18). B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Equality and valuation.-There is no general constitutional provision specifically requiring equality of taxation. In the section providing for the upkeep of canals, it is required that taxes for this purpose be "equitable" (art. VII, sec. 9). By an amendment adopted in 1925, among other civic departments established, was one of taxation and finance, its powers and functions to be established by law (art. V, secs. 2 and 3). NOTE. This department and the courts appear to hold that property assessments should be equal and proportionate and not discriminatory; that assessments ought to be based upon the full true or fair market value; and that in the absence of constitutional restrictions the Legislature has the power to make any change it deems advisable in the method of collecting State or county taxes. (b) Enactment of taxing laws.-In order that laws imposing taxes may be fully considered, it is provided: (1) Every law which imposes, continues, or revives a tax shall distinctly state the tax and the object to which it is to be applied, and it shall not be sufficient to refer to any other law to fix such tax or object (art. III, sec. 24). (2) On any such act, the vote on final passage in either house shall be by yeas and nays (art. III, sec. 25). (c) School taxes.— The Legislature shall provide for the maintenance and support of a system of free common schools * * * (art. IX, sec. 1). (d) Forest reserves.—A State forest reserve is created, with a provision for the construction of reservoirs therein for canals and water supply, the expense to be apportioned on public and private property and municipalities benefited (art. VII, sec. 7). (e) State canals.-The legislature is required to provide for the superintendence of the State canals by annual and equitable taxes (art. VII, sec. 9). (f) Exemptions.-There is no constitutional provision which specifically provides for any property tax exemption. The legislature may not exempt real or personal property from taxation by a private or local bill (art. III, sec. 18). Franchise taxes are imposed. Corporations, except for municipal purposes, are to be formed under general laws (art. VIII, sec. 1), and dues from corporations are to be secured: Dues from corporations shall be secured by such individual liability of the corporators and other means as may be prescribed by law (art. VIII, sec. 2). 5. LICENSE TAXES License taxes are imposed. Towns and cities are given powers in this regard. Poll taxes are imposed. 6. POLL TAXES C. SPECIFIC PROVISIONS (COUNTIES) 1. PROPERTY TAXES Local government provided. County organization and government are provided for, and the legislature is required to confer on boards of supervision, or other governing bodies, of the counties, powers of local legislation: The Legislature shall, by general laws, confer upon the boards of supervisors, or other governing elective bodies, of the several counties of the State such further powers of local legislation and administration as the Legislature may, from time to time, deem expedient (art. III, sec. 27). * * D. SPECIFIC PROVISIONS (MUNICIPALITIES) 1. PROPERTY TAXES (a) The legislature is required to provide for the organization of cities, towns, and villages, and to restrict their power of taxation. It shall be the duty of the Legislature to provide for the organiaztion of cities and incorporated villages, and to restrict their power of taxation, assessment, borrowing money, contracting debts, and loaning their credit, so as to prevent abuses in assessments and in contracting debt by such municipal corporations; (art. XII, sec. 1). (b) Special laws relative to the property or governmental affairs of cities prohibited: The Legislature shall not pass any law relating to the property, affairs or government of cities, which shall be special or local either in its terms or in its effect, but shall act in relation to the property, affairs, or government of any city only by general laws which shall in terms and in effect apply alike to all cities except on message from the governor declaring that an emergency exists and the concurrent action of two-thirds of the members of each house of the legislature (art. XII, sec. 2). (c) The legislative power is not restricted to enact laws relating to matters other than the property, affairs or government of cities. (art. XII, sec. 4). 2. RIGHT OF LOCAL GOVERNMENT SECURED (a) By an amendment to the constitution (1923), cities are specifically given the right to enact local laws pertaining to their internal affairs: Every city shall have power to adopt and amend local laws not inconsistent with the constitution and laws of the State, relating to the powers, duties, qualifications, number, mode of selection and removal, terms of office and compensation of all officers and employees of the city, the transaction of its business, the incurring of its obligations, the presentation, ascertainment, and discharge of claims against it, the acquisition, care, management and use of its streets and property, the wages or salaries, the hours of work or labor, and the protection, welfare and safety of persons employed by any contractor or subcontractor performing work, labor or services for it, and the government and regulations of the conduct of its inhabitants and the protection of their property, safety and health. The Legislature shall, at its next session after this session shall become part of the constitution, provide by general law for carrying into effect the provisions of this section (art. XII, sec. 3). (b) In addition to the specific powers granted in the constitution to cities, the legislature may confer further powers of local legislation and administration: The Legislature may by general laws confer on cities such further powers of local legislation and administration as it may, from time to time, deem expedient (art. XII, sec. 5). NORTH CAROLINA Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1868, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE FOWERS (a) The legislative authority is vested in the general assembly (art. II, sec. 1). (b) Special object must be stated: Every act of the General Assembly levying a tax shall state the special object to which it is to be applied, and it shall be applied to no other purpose (art. V, sec. 7). 2. LEGISLATIVE LIMITATIONS (a) No private or special legislation shall be passed in the following cases: * * * * * * extending the time for the assessment or collection of taxes or otherwise relieving any collector of taxes from the due performance of his official duties or his sureties from liability; The General Assembly shall have power to pass general laws regulating matters set out in this section (art. II, sec. 29). (b) No private law may be passed unless prior notice thereof shall have been given: The General Assembly shall not pass any private law, unless it shall be made to appear that thirty days' notice of application to pass such a law shall have been given, under such direction and in such manner as shall be provided by law (art. II, sec. 12). 3. WIFE'S SEPARATE ESTATE The real and personal property of any female of this State acquired before marriage, and all property, real and personal, to which she may, after marriage, become in any manner entitled, shall be and remain the sole and separate estate and property of such female, and shall not be liable for any debts, obligations, or engagements of her husband, and may be devised and bequeathed, and, with the written assent of her husband, conveyed by her as if she were unmarried (art. X, sec. 6). B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Uniformity and valuation.-Taxes are required to be uniform as to each class of property taxed: The power of taxation shall be exercised in a just and equitable manner, and shall never be surrendered, suspended or contracted away. Taxes on property shall be uniform as to each class of property taxed. Taxes shall be levied only for public purposes, and every act levying a tax shall state the object to which it is to be applied. The General Assembly may also tax trades, professions, franchises, and incomes: Provided, the rate of tax on incomes shall not in any case exceed ten per cent (10%), and there shall be allowed the following exemptions, to be deducted from the amount of annual incomes, to wit: for married man with a wife living with him, or to a widow or widower having minor child or children, natural or adopted, not less than $2,000; to all other persons not less than $1,000, and there may be allowed other deductions (not including living expenses) so that only net incomes are taxed (art. V, sec. 3, as amended 1936). (b) School taxes.-The legislature shall provide by taxation and otherwise for a uniform system of free public schools: The General Assembly, at its first session under this Constitution, shall provide by taxation and otherwise for a general and uniform system of public schools, wherein tuition shall be free of charge to all the children of the State between the ages of six and twenty-one years (art. IX, sec. 2). (c) Exemptions.— * * * Property belonging to the State, or to municipal corporations, shall be exempt from taxation. The General Assembly may exempt cemeteries and property held for educational, scientific, literary, charitable, or religious purposes; also wearing apparel, arms for muster, household and kitchen furniture, the mechanical and agricultural implements of mechanics and farmers; libraries and scientific instruments, or any other personal property, to a value not exceeding three hundred dollars. The General Assembly may exempt from taxation not exceeding one thousand dollars ($1,000.00) in value of property held and used as the place of residence of the owner (art. V, sec. 5, amended 1936). (d) Rate limitation.-The total State and county property tax shall not exceed 15 cents on the $100 value, except a county tax for a special purpose. The State tax shall not exceed 5 cents on the $100 valuation. These limitations do not apply to school taxes required by article IX: The total of the State and county tax on property shall not exceed fifteen cents on the one hundred dollars value of property except when the county property tax is levied for a special purpose and with the special approval of the General Assembly, which may be done by special or general act: Provided, this limitation shall not apply to taxes levied for the maintenance of the public schools of the State for the term required by article nine, section 3, of the Constitution; Provided further, the State tax shall not exceed five cents on the one hundred dollars value of property (art. V, sec. 6). 2. INCOME TAXES The constitution authorizes a tax on incomes. (See par. B-1-a.) 3. DEATH TAXES An inheritance tax is imposed. 4. FRANCHISE TAXES Franchise taxes are authorized. (See par. B-1-a.) 5. LICENSE TAXES Authority for license or occupational taxes is also granted. (See par. B-1-a). 6. POLL TAXES (a) A capitation tax by the State and by municipalities is provided: |