CONSTITUTIONAL PROVISION

SECTION 1 ARTICLE IX

The power of taxation shall never be surrendered, suspended or contracted away. Taxes shall be uniform upon the same class of subjects, and shall be levied and collected for public purposes, but public burying grounds, public school houses, public hospitals, academies, colleges, universities, and all semmaries of learning, all churches, church property, and houses of worship, institutions of purely public charity, and public property used exclusively for any public purpose, shall be exempt from taxation, and there may be exempted from taxation personal property not exceeding in value $200, for each household, individual or head of a family, as the legislature may determine: Provided, that the legislature may authorize municipal corporations to levy and collect assessments for local improvements upon property benefited thereby without regard to a cash valuation, and, provided further, that nothing herein contained shall be construed to affect, modify or repeal any existing law providing for the taxation of the gross earnings of railroads.

Adopted Nov. 6, 1906.

TAXES

GENERAL PROVISIONS

1. Property subject to taxation-All real and personal property in this state, and all personal property of persons residing therein, including the property of corporations, banks, banking companies, and bankers, is taxable, except such as is by law exempt from taxation. (794)

1. General rules-All property within the state and subject to its jurisdiction is taxable unless expressly exempted (24-251; 23-280; 72-200, 75+210. See Const. art. 9 § 3). The taxing power of the state has no extraterritorial force (56-24, 57+313. See 72-87, 91, 75+108). The state cannot tax property unless it has jurisdiction over the owner or the property (35-215, 28+256; 76-155, 78+962, (1117). Corporal personal property is taxable wherever it has a fixed situs, regardless of the domicil of the owner (35-245, 28+256; 94-320, 102+721). If such property is within one state and its owner is domiciled in another it may be taxed in the former, although it is also taxed in the latter (56-24, 57+313. But see § 833). Incorporeal personal property is generally taxable where it is owned, that is, at the domicil of the creditor, but he may give it a business situs elsewhere (35-215, 28+256; 177 U. S. 133).

2. Credits of non-residents in the hands of local agents-If a non-resident owner of credits places them in the hands of an agent in this state for collection or renewal with a view of retaining the money and keeping it invested here indefinitely they are taxable here (35–215, 28+256; 80-277, 83+339; 177 U. S. 133. See 7-258, 198; 63-80, 65+138; 77-190, 79+829; 83-512, 86+775, 103+731); otherwise if the local agent is given no power of reinvestment or general control but merely receives money, loans it, and returns the papers to his principal (76-155, 78+962, 1117). It is immaterial that the principal is insolvent and his local business is being closed up (80-277, 83+339).

3. Property of non-residents stored here-Property of non-residents stored here for convenience in distribution to future purchasers is taxable here (56-24, 57+313. See § 817), but property shipped into the state and held in the cars on the track of the common carrier for the purpose of distribution to parties who have purchased prior to shipment, although consigned to the shipper for convenience, is not taxable here until after distribution (79-127, 81+752. See § 817).

4. Property of non-residents consigned for sale here-Property of nonresidents consigned to agents for sale here is taxable here (14-252, 185; 7-258, 198. See 817); otherwise if it is consigned merely for distribution to parties purchasing prior to the consignment (79–127, 81+752. See § 817).

5. Property in transit-Railroad tank cars owned by a non-resident corporation and in transit through the state held not taxable (94-320, 102+721).

6. Federal property and agencies—Federal property is not taxable by the state (30-372, 15+665; 42-312, 44+201; 21-472; 28-257, 9+761). Federal agencies such as national banks are not taxable except as authorized by Congress (23-280; 11-500, 378). Property in the Indian reservations is not taxable by the state (7-140, 84. See 15–369, 302).

7. Interstate commerce-Interstate commerce is not taxable by the state, but property of corporations employed in interstate commerce may be so taxed according to the proportionate share employed in the state (See 85-457, 89+66; 94-320, 102+721).

8. Held taxable-A debt arising from a contract for the sale of land (39-502, 40+835); a debt secured by a real estate mortgage although the real estate itself is taxed (24-251; 39-502, 40+835); a mortgage held by a mutual building association, the stock of the association not being taxed (45-154, 47-540); things in action (80-277, 83+339); riparian rights (26-229, 2+839); wheat held by a corporation for the benefit of its members and unexpended money in its hands (30–429, 16+151); the separate interests of tenants in common of personal property (39-502, 40+835); funds from the sale of lands conveyed by the state to a private corporation in aid of internal improvements though secured by a bond to the state (32–516, 21+738); bees in hives and domesticated (Ops. Atty. Gen. 1894 No. 207); abstract books (Ops. Atty. Gen. 1894 No. 209); contracts for sale of land by foreign railroad corporation doing business in this state (103+731).

2. Property exempt-All property described in this section, to the extent herein limited, shall be exempt from taxation, to-wit:

1. All public schoolhouses, academies, colleges, universities, and seminaries of learning, with the books and furniture therein, and the grounds attached to such buildings, and necessary for their proper occupancy, use, and enjoyment, and not leased or otherwise used with a view to profit.

2. · All houses used exclusively for public worship, and the lot or parts of lots upon which such houses are erected.

3. All lands used exclusively for public burying grounds or cemeteries.

4. All public property, real or personal, used exclusively for any public purpose.

5. All buildings belonging to institutions of purely public charity, including orphan asylums, homes for the indigent, and public hospitals, together with the land actually occupied by such institutions, not leased or otherwise used with a view to profit, and all moneys and credits belonging exclusively, and appropriated solely to sustaining, such institutions.

6. All fire engines and other implements used for the extinguishment of fires, with the buildings used exclusively for the safe-keeping thereof, and for the meeting of fire companies, whether belonging to any town, or to any fire company organized therein.

7. All public libraries and libraries owned by corporations other than those for pecuniary profit, and real and personal property belonging to or connected with the same.

8. All armories, drill halls, and other buildings and grounds used exclusively for the benefit of any company, regiment, or incorporated military organization.

9. All property belonging to incorporated camp or grove meeting associations, Sunday school assemblies, Young Men's Christian Associations, societies for religious instruction or worship, expressly dedicated and necessary for their proper occupancy, use, and enjoyment, and not leased or otherwise used with a view to profit.

10. All property belonging to, and used exclusively for the purposes of, any state, district, or county agricultural society. or industrial exposition incorporated under the laws of this

state.

11. The buildings and other property exclusively used by beneficiary associations or fraternal beneficiary associations in carrying on their business, and all dues, assessments, and other payments, and the accumulations thereof, held by such associations for the payment of death, sick, or disability benefits, and the reserve, emergency, and other mortuary funds of such associations.

12. The uniforms, arms, and equipments, and, in addition thereto, other personal property of each member of the national guard to an amount not exceeding two hundred dollars in value.

13. The personal property of each individual liable to assessment and taxation under the provisions of this chapter, of which he is the actual and bona fide owner, to an amount not exceeding one hundred dollars in value: Provided, that each person shall list all his personal property for taxation, and the county auditor shall deduct the amount of the exemption authorized by this section from the total amount of his assessment, and levy taxes upon the remainder.

The property mentioned in subds. 3, 8, 10 hereof shall be exempt, also, from special assessments. (795)

1. None except authorized by constitution-The legislature has no authority to exempt persons or property from taxation, directly or indirectly, except as authorized by the constitution. And the same limitation rests on municipalities (20-396, 347; 39-110, 38+803; 63-80, 65+138; 74-197, 77+40; 77-433, 80+626; 40-232, 41+948; 79-175, 81+839; 90-180, 95+764; 69-170, 71+931). See 46-316, 48+1119 (territorial charter).