(2) In certain cases the above rates may be increased: For the purpose of erecting public buildings in counties, cities, or school districts, the rates of taxation herein limited may be increased, when the rate of such increase and the purpose for which it is intended shall have been submitted to a vote of the people, and a majority of the qualified voters of such county, city, or school district, voting at such election, shall vote therefor; Provided, That such increase shall not exceed 5 mills on the dollar of the assessed value of the taxable property in such county, city, or school district (art. X, sec. 10).* D. SPECIFIC PROVISIONS (MUNICIPALITIES) 1. PROPERTY TAXES NOTE.-Except as noted below, the same provisions with respect to taxation by counties set out in the preceding section C also apply to the other political subdivisions of the State. 2. ORGANIZATION Municipal corporations shall be created by general laws, and for their classification according to population: Municipal corporations shall not be created by special laws, but the legislature, by general laws, shall provide for the incorporation and organization of cities and towns and the classification of same in proportion to population, subject to the provisions of this article (art. XVIII, sec. 1). 3. INITIATIVE AND REFERENDUM The power of initiative and referendum is extended to municipal corporations (art. XVIII, sec. 4a). 4. EXEMPTIONS Any incorporated city or town may be authorized to exempt manufacturing industries and public utilities from municipal taxation for a period not exceeding 5 years (art X, sec. 6). PENNSYLVANIA Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1873, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS The legislative power is vested in a general assembly (art. II, 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, borroughs, or school districts; incorporating cities, towns, or villages; regulating the management of public schools, the building or repairing of school houses and the raising of money for such purposes; changing the law of descent or succession; exempting property from taxation; creating corporations; granting to any corporation, association, or individual any special or exclusive privilege or immunity, or to any corporation, association, or individual the right to lay down a railroad track; or exempting property from taxation (art. III, sec. 7). (b) Municipal authority may not be delegated to commissions, etc.: The general assembly shall not delegate to any special commission, private corporation, or association any power to make, supervise, or interfere with any municipal improvement, money, property, or effects or to levy taxes or perform any municipal function whatever (art. III, sec. 20). B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES * * * (a) Uniformity and valuation.-Taxes shall be uniform upon the same class of subjects and shall be levied and collected by general laws: 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; (art. IX, sec. 1; amended 1923). * * * (b) School taxes. * * * The General Assembly shall provide for the maintenance and support of a thorough and efficient system of public schools. and shall appropriate at least one million dollars each year for that purpose (art. X, sec. 1). (c) Corporations and corporate property.— The power to tax corporations and corporate property shall not be surrendered or suspended by any contract or grant to which the State shall be a party (art. IX, sec. 3). (d) Exemptions.—(1) * * * The General Assembly may, by general laws, exempt from taxation public property used for public purposes, actual places of religious worship, places of burial not used or held for private or corporate profit, and institutions of purely public charity and real and personal property owned, and used by any branch, post or camp of honorably discharged soldiers, sailors and marines (art. IX, sec. 1; amended). (2) All laws exempting property from taxation other than the property above enumerated shall be void (art IX, sec. 2). (3) Certain exemptions or rebates may be granted to residents of other States: Taxation laws may grant exemptions or rebates to residents, or estates of residents, of other States which grant similar exemptions or rebates to residents, or estates of residents. of Pennsylvania (art. IX, sec. 1B). 2. INCOME TAXES A corporate income tax is imposed. 3. DEATH TAXES Inheritance and estate taxes are imposed. 4. FRANCHISE TAXES Franchise taxes are imposed (arts. XVI-XVII). 5. LICENSE TAXES License taxes are imposed. Poll taxes are imposed. 6. POLL TAXES C. SPECIFIC PROVISIONS (COUNTIES) 1. PROPERTY TAXES (a) Authority is given to classify counties, cities, and other political subdivisions according to population, the number of each class being restricted. All laws relating to each class shall be deemed general legislation within the meaning of the constitution (art. III, sec. 34). (b) Any county or municipality incurring an indebtedness shall levy an annual tax to provide for its retirement (art. IX, sec. 10). (c) Taxes in consolidated counties and cities. The legislature is authorized to provide for the consolidation of the county and all subdivisions of Allegheny County into a consolidated city and county known as the city of Pittsburgh. Provision was made for the assessment of property, the levying and collection of taxes, including special taxes levied throughout the special districts, separate and apart from the general city tax. The continued existence of the cities, borroughs, and townships within the consolidated area as municipal divisions of the consolidated city under their present names and forms of government being provided; the amendment providing these municipal divisions shall continue to have the constitutional and legal capacity of municipal corporations, etc. (art. XV, sec. 4, as amended). D. SPECIFIC PROVISIONS (MUNICIPALITIES) 1. PROPERTY TAXES Provision is made for the chartering of cities and for them to exercise the powers of local self-government, subject to legislative restrictions, limitations and regulations (art. XV, sec. 1, as amended). 2. CLASSIFICATION OF CITIES (Art. III, sec. 34, C-1-a) 3. ASSESSMENT OF PROPERTY OWNERS FOR TRANSPORTATION FACILITIES IN PHILADELPHIA Philadelphia is also authorized to assess property owners for the construction and operation of transit facilities (art. IX, sec. 19, as amended). 4. CITY OF PITTSBURGH AND ALLEGHENY COUNTY (See par. C-1-c) RHODE ISLAND Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1843, as amended) NOTE. The Constitution of Rhode Island has few specific provisions as to taxation. Until the adoption of the constitution in 1843, the State government had functioned under the charter of 1663 granted by Charles II. The general assembly has continued to exercise the same powers they had therefore (art. IV, sec. 10), and the taxing system is largely a development of the colonial customs and usages. A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS (a) The legislative power is vested in the general assembly (art. IV, sec. 2). (b) The general assembly shall pass all laws necessary for enforce ment of the constitution: The Constitution shall be the supreme law of the State. The General Assembly shall pass all laws necessary to carry this Constitution into effect (art. IV, sec. 1). (c) Powers of the general assembly prior to the constitution are continued: The General Assembly shall continue to exercise the powers they have heretofore exercised, unless prohibited by this Constitution (art. IV, sec. 10). 2. LEGISLATIVE LIMITATIONS The only specific limitations in the constitution are with respect to taxes for religious purposes (art. I, sec. 3) and to incurring a State debt (art. IV, sec. 13). B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Equality and valuation.-The legislature shall provide for valuations of property for the assessment of taxes: The general assembly shall, from time to time, provide for making new valuations of property, for the assessment of taxes, in such manner as they may deem best. A new estimate of such property shall be taken before the first direct state tax, after the adoption of this constitution, shall be assessed (art. IV, sec. 15). (2) An equality and uniformity of the burden of taxation is suggested (by statute, property is assessed at its fair and full value): All free governments are instituted for the protection, safety, and happiness of the people. All laws, therefore, should be made for the good of the whole; and the burdens of the state ought to be fairly distributed among its citizens (art. I, sec. 2). (b) Exemptions.-No constitutional provision requires any property shall be exempt from taxation. The usual type of property is exempted by statutes. 4. FRANCHISE TAXES Franchise taxes are imposed. The general assembly is to provide for the creation and control of corporations: Hereafter the general assembly may provide by general law for the creation and control of corporations: Provided, however, that no corporation shall be created with the power to exercise the right of eminent domain, or to acquire franchises in the streets and highways of towns and cities, except by special act of the general assembly upon a petition for the same, the pendency whereof shall be notified as may be required by law (art. IV, sec. 17, amended by amendment, art. IX, adopted November 1892). 5. LICENSES License taxes are imposed by the State and municipalities. 6. POLL TAXES An annual poll tax of $1 is required to be assessed by each town and city, to be applied to the support of public schools (art. II, sec. 2, amended, art. VIII, sec. 2, and art. XX). C. SPECIFIC PROVISIONS (COUNTIES) There is no provision in the constitution for taxation by counties (there are only five in the State), and no such taxes are levied. All taxes are either levied by the State or by the city or town in the domicile of the taxpayer or where his property may be located. D. SPECIFIC PROVISIONS (MUNICIPALITIES) The general assembly is permitted to vest in a budget commission authority to impose taxes in any town or city : * Provided, That if the general assembly shall at any time vest the authority to impose taxes and for the expenditure of money in any town or city in a budget commission, such commission shall consist of not less than five nor more than fifteen electors, of such qualifications and with such powers as the general assembly may prescribe, to be elected by the qualified electors of such town or city; and * (article of amendment XX (1928), sec. 1). * * SOUTH CAROLINA Constitutional Provisions Relating to Taxation as of June 30, 1937 (Constitution of 1895, as amended) A. GENERAL PROVISIONS 1. LEGISLATIVE POWERS The legislative power is vested in the general assembly (art. 3, sec. 1). 2. LEGISLATIVE LIMITATIONS Special laws are prohibited for the purposes of incorporating cities, towns, villages, or school districts or for the incorporating of various institutions or organizations which are not under the control of the State (art. 3, sec. 34). |
