UNINCORPORATED PLACES IN NEBRASKA HAVING AN ESTIMATED POPULATION OF 50 OR MORE INHABITANTS, 1922

UNINCORPORATED PLACES IN NEBRASKA HAVING AN ESTIMATED POPULATION OF 50 OR MORE INHABITANTS, 1922—Continued

TAXATION IN NEBRASKA1

The constitution of 1875 provided for raising revenues by taxation as follows:

Art. IX, Sec. 1. "The legislature shall provide such revenue as may be needful, by levying a tax by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her or its property and franchises, the value to be ascertained as the legislature shall direct, and it shall have power to tax peddlers, auctioneers, brokers, hawkers, commission merchants, showmen, jugglers, inn-keepers, liquor-dealers, tollbridges, ferries, insurance, telegraph and express interests or business, venders of patents, in such manner as it shall direct by general law, uniform as to the class upon which it operates."

Art. IX, Sec. 2. "The property of the state, counties and municipal corporations, both real and personal, shall be exempt from taxation, and such other property as may be used exclusively for agricultural and horticultural societies, for schools, religious, cemetery and charitable purposes, may be exempted from taxation, but such exemptions shall be only by general law. In the assessment of real estate incumbered by public easement, any depreciation occasioned by such easement may be deducted in the valuation of such property. The legislature may provide that the increased value of land, by reason of live fences, fruit and forest trees grown and cultivated thereon, shall not be taken into account in the assessment thereof."

All revenue legislation from 1875 to 1921 was based on these two sections of the constitution. Few innovations of principle were possible because of constitutional limitations. The chief departures have been the inheritance tax of 1901, the taxation of railway terminals since 1907, and the occupation tax on all corporations since 1909.

The inelasticity of the constitution was remedied somewhat by amendments adopted September 21, 1920. These amendments are as follows:

Article VIII, Section 1. "The necessary revenue of the state and its governmental subdivisions shall be raised by taxation in such manner as the legislature may direct; but taxes shall be levied by valuation uniformly and proportionately upon all tangible property and franchises, and taxes uniform as to class may be levied by valuation upon all other property. Taxes other than property taxes may be authorized by law. Existing revenue laws shall continue in effect until changed by the legislature."

Article IV. Sec. 28. "A tax commissioner shall be appointed by the governor with the advice and consent of the senate. He shall have jurisdiction over the administration of the revenue laws of the state, and together with the governor, secretary of state, state auditor and state treasurer shall have power to review and equalize assessments of property for taxation within the state. He shall have such other powers and perform such other duties as the legislature may provide. His term of office and compensation shall be as provided by law."

The legislature of 1921 enacted a new revenue law, one of the principal features of which was the classification of intangible property for taxation. Actual value of real property was established as the basis of levy of taxes, rather than one-fifth of the actual value as was formerly the law. The law governing taxation of railroads, insurance companies and franchises was also rewritten.

An extensive history of taxation in Nebraska was published in the Blue Book of 1915.