(The documents above referred to are as follows:) SOME RECENT LEGISLATION CONCERNING TAXING POWERS AND TAX RATES, MAY 21, 1948 MICHIGAN The law: Final summary of 1947 tax legislation. Property tax limitation: Act 293 amended the provisions of the Property Tax Limitation Act pertaining to local units in increasing the total tax rate limitation within their areas. Approved June 30, 1947, effective October 11, 1947. The law Compiled Laws, 1929. Property Tax Limitation Act (Act No. 62, P. A. 1933): * * * * 97-607. SEC. 3551.3. (c) If any local unit shall hold an election for the purpose of increasing the total tax rate limitation * the vote of such election shall be taken by ballot. Said ballot shall state the amount to which it is proposed that the total tax rate limitation on property in the local unit be increased and the number of years for which it is proposed that said increase shall be effective. Said ballot may also state the purpose for which the funds derived from the voted increase over the constitutional tax rate limitation may be used, and such funds shall not be considered by the county allocation board in dividing the net limitation tax rate among the various governmental units entitled thereto. ** * (Above as amended by Act 293, P. A. 1948, effective October 11, 1947.) (NOTE.-Constitutional limitation-1% percent of assessed valuation this limitation may be increased for a period not to exceed 5 years at any one time, to not more than a total of 5 percent of the assessed valuation by two-thirds vote. OHIO Final summary, 1947 tax legislation, first special session. Additional local tax levies: S. B. 360 provides that the electors of a political subdivision, other than a school district, may, when the amount of taxes raised within the 10-mill limitation is insufficient for ordinary requirements, vote to levy a tax in excess of such limitation. Approved December 5, 1947; effective 90 days after filing with Secretary of State. (Law not reproduced.) Final summary, 1947 tax legislation. School district levy: S. B. 2 provides that the board of education of any school district may, upon approval of 60 percent of the electors, levy a tax in excess of the 10-mill limitation for the purpose of meeting the ordinary requirements of the district. Approved April 2, 1947; effective immediately. (Law not reproduced.) Extension of 10-mill limitation: S. B. 81 amends section 5625–15, G. C., relating to extension of taxes beyond the 10-mill limitation, by increasing the allowable levy for recreation purposes from two-tenths to five-tenths of a mill. Final summary of tax legislation, 1946 second special session. Authorization of cities to make additional levies for municipal universities: S. B. 360, laws of 1946 amended subsection 5 of section 5625-15, to change the limitation figure from fifty-five hundredths of 1 mill to 1 mill over and above what a municipality might, by referendum, levy a tax for the purpose of a municipal university. Section 4003.11 was amended to provide that the council may assess and levy taxes on all taxable property of a municipal corporation to the amount of ninety-five hundredths of 1 mill on the dollar valuation. Formerly the amount was five-tenths of 1 mill. Approved and effective July 10, 1946. Final summary, 1943 tax legislation. Levying additional taxes: S. B. No. 69 provides that prior to December 31, 1944, the taxing authority of any subdivision by a vote of two-thirds of all its members, may declare by resolution that the amount of taxes which may be raised within the 10-mill limitation by levies on the current tax duplicate will be insufficient to provide an adequate amount for necessary requirements, and that it is necessary to levy a tax in excess of said limitation for any of the purposes in section 5625-15 G. C. or to supplement the general fund appropriations for relief, welfare, * * * and that the question of such additional levy should be submitted to the electors at a special or primary election. Such levy should not be for a period longer than 2 years; the necessary levy shall be made at the additional rate or any lesser rate outside the 10-mill limitation. Approved and effective April 2, 1943. ILLINOIS * * * Summary of 1947 tax legislation. Forestry program levy: S. B. 158 adds to the revised Cities and Villages Act to provide authority for a forestry program to be carried on by municipalities, permitting a tax levy not exceeding 0.05 percent of full, fair cash value of property of the municipality * in addition to all other taxes when * * * adopted by referendum in a municipality. Approved and effective July 21, 1947. Levy limits for transition period ending in 1952: H. B. 513 amends section 162a of the Revenue Act of 1939 by completely rewriting levy-limit provisions adopted as part of the full assessment program to limit tax rates for the period ending December 31, 1952, to 105 percent of whichever is lower of (1) the product of 1942 assessment ratio and the maximum rate authorized prior to January 1, 1946; or (2) the quotient of the maximum permissible 1945 extension (computed by multiplying the amount of assessed valuation for 1945 and the maximum tax rate for 1945) divided by 100 percent full cash value for 1946, to exclude from the limits specified any levies established by votes after December 31, 1945, tax districts created after December 31, 1945, levies not subject to limitation * * * and levies for which minimum rates are prescribed as a condition for receipt of State aid; to change referenda provisions to include in the ballot information showing the difference in taxes under the present and proposed rate, to provide for elections, to reduce from 90 to 30 days the time before an election for filing a petition for a referendum and to apply the new tax rate limit to the next levy immediately following the election. Approved and effective July 22, 1947. TEXAS Final summary of 1947 legislation, property taxes. Creating county-wide equalization fund: Chapter 78 provides that any county having between 10,000 and 10,500 inhabitants and an assessed valuation of property of between $12,000,000 and $14,000,000 may upon proper election levy a tax not to exceed 25 cents on each $100 valuation of the taxable property for upkeep of school buildings and grounds. Cities of second class, maximum levy: L. B. No. 121 provided that cities of the second class and villages shall have power to levy taxes for general revenue purposes not to exceed 10 mills on the dollar in any 1 year. Approved March 31, 1947; effective September 7, 1947. Municipal taxes, maximum authorized: L. B. No. 260, laws of 1947 set the maximum mill levy for general revenue purposes in first-class cities at 12 mills on all property within the city taxable law, except intangible property. The maximum mill levy for all purposes was increased by L. B. 260 from 18 to 20 mills on property within the municipality. (Effective April 23, 1947.) (Several others listed.) WISCONSIN Final summary, 1947 tax legislation. Property taxes: chapter 66 (S. B. No. 118) amends section 40.04 (6) of the statutes limiting the total levy for common school districts to 221⁄2 percent of full equalized valuation of taxable property in the district. Approved April 26, 1947; effective April 27, 1947. KENTUCKY The law, chapter 132: 95-913, section 132.020: An annual ad valorem tax for State purposes of 5 cents upon each $100 of value of all real property directed to be assessed for taxation (25 cents-bonds, accounts, etc.) * * * (Amendment As amended by H. B. 357, laws of 1948 effective June 17, 1948. added the provision of 25 cents on $100 of value of bond accounts, etc.) GEORGIA Final summary, 1947 tax legislation: Proposed amendment to constitution: Resolution 29, p. 1764, proposed an amendment to article 8, section 5, paragraph 1 of the State constitution providing for a county board of education for Polk County and for a special school tax of 2 mills on all property in the county in addition to the regular levies for the support of schools. Said resolution also provided for submission of the proposed amendment to the voters at the next general election. Approved and effective March 28, 1947. ALABAMA The law, 1947 legislation: Constitutional amendment to permit county hospital taxes: Act (H. B. No. 136) proposed an amendment to the State constitution to permit every county except Mobile, Montgomery, and Jefferson to levy a tax not exceeding 4 mills on each dollar of taxable property to be used solely for acquiring, constructing county hospitals or other public, nonprofit hospitals, and public health facilities. Adopted August 12, 1947 subject to ratification at the next general election after the present session of the legislature. (This law is not reproduced.) Constitutional amendment, Montgomery County: Act (S. B. No. 9), Second Special Session, proposed an amendment to the State constitution to permit Montgomery County to levy a tax not exceeding 4 mills on each dollar of taxable property to be used solely for acquiring, constructing, and maintaining county hospitals or other public hospitals, nonprofit hospitals, and public health facilities. Approved May 22, 1947, and adopted at special election August 26, 1947. (This law is not reproduced.) * * * Constitutional amendment, Marion County: Act (S. B. No. 230) proposed an amendment to the State constitution to permit Marion County to levy a tax not exceeding 4 mills on each dollar of taxable property to be used solely for acquiring constructing a county hospital or public hospital facilities in the county for which Federal funds have been or may be provided. Adopted July 18, 1947, subject to ratification at the general election next succeeding the present session of the legislature. (This law not reproduced.) * * * Constitutional amendment, Escambia County: Act (H. B. No. 179) proposed an amendment to the State constitution to permit Escambia County to levy a tax not exceeding 4 mills on each dollar of taxable property to be used solely for acquiring, constructing county hospitals or other public hospitals, nonprofit hospitals, and public health facilities. Adopted July 31, 1947, subject to ratification at the next general election after the present session of the legislature. (This law is not reproduced.) Constitutional amendment, De Kalb County: Act (H. B. 921) proposed an amendment to the State constitution to permit De Kalb County to levy a tax not exceeding 4 mills on each dollar of taxable property to be used solely for acquiring, constructing, county hospitals or other public hospitals, nonprofit hospitals, and public health facilities. * * * Adopted July 31, 947, subject to ratification at the next general election after the present session of the legislature. (This law is not reproduced.) Constitptional amendment, Etowah County: Act (H. B. No. 1009) proposed an amendment to the State constitution to permit Etowah County to levy in the several school districts in Etowah County, including the cities of Gadsden and Attalla, a special school tax of 50 cents on each $100 of taxable property to be used solely for public-school purposes. Adopted September 30, 1947, ratified at special election held January 6, 1948. (This law is not reproduced.) Constitutional amendment, Jefferson County: Act (H. B. No. 895) proposed an amendment to the State constitution to authorize Jefferson County to levy an additional tax of 50 cents on each $100 of taxable property to be used for publicschool purposes. Adopted September 30, 1947, subject to ratification at general election next succeeding the final adjournment of the 1947 regular session of the legislature. (This law is not reproduced.) Constitution amendment, Calhoun County: Act (H. B. No. 833) proposed an amendment to levy in the cities of Jacksonville, Piedmont, and Anniston and in the several school districts of Calhoun County a special school tax of 50 cents on each $100 of taxable property to be used solely for public-school purposes, and provided for the issuance of bonds arising from the funds of the special school tax for the construction and improvement of public-school buildings and acquiring sites therefor. Adopted September 30, 1947, ratified by special election held January 6, 1948. (This law is not reproduced.) Constitutional amendment, city of Tuscaloosa and Tuscaloosa County: Act (S. B. No. 241) provided an amendment to the State constitution to levy in the city of Tuscaloosa and in the several school districts of Tuscaloosa a special school tax of 50 cents on each $100 of taxable property to be used solely for publicschool purposes, and provided for the issuance of bonds arising from funds of the special tax for construction and improvement of public-school buildings and acquiring sites therefor. Adopted July 31, 1947, subject to ratification at the first general election after the present session of the legislature. (This law is not reproduced.) Exemption for areas added to city of Huntsville: Act (H. B. No. 208) exempts all property located in any area which may be added to the corporate limits of the city of Huntsville by any act of the legislature of Alabama passed at any time during the session of the legislature beginning on the first Tuesday in May 1947 from ad valorem taxation by the city of Huntsville until the fiscal year beginning October 1, 1947. Approved and effective June 27, 1947. (This law is not reproduced.) Exemption for areas added to city of Mobile: Act 178 (H. B. No. 490), exempts all property located in any area which may be added to the corporate limits of the city of Mobile from ad valorem taxation by such city until the fiscal year beginning October 1, 1945 * * ** Approved and effective June 22, 1945. Amendment to constitution: Act 190 (H. B. 391) proposes an amendment to the constitution of Alabama to permit the levying of special tax for educational purposes provided for by section 269 thereof in the cities of Decatur and Cullman and to permit the levying of a special tax for hospital purposes in Morgan County. Passed by both Houses subject to referendum, Adopted by the people * at general election, November 5, 1946. * * * * Amendment to constitution: Act 383 (H. B. No. 458) proposes an amendment to the constitution to permit each municipal corporation, whose annual ad valorem tax is limited by the constitution to less than 14 percent, to levy an additional tax to increase, but not to exceed, such annual tax to 14 percent. Such additional tax, however, is to be levied only when and for such purposes as the qualified voters of each municipal corporation authorize an election. The adoption of such an amendment will not affect in any way the power of a municipal corporation to levy any special school taxes Adopted by the people at the general election held November 5, 1946. Proposed constitutional amendment: Act 420 (S. B. No. 162) proposes an amendment to the constitution * * * to be voted upon at the general election next suceeding the 1945 regular session of the legislature, making it mandatory on the governing body of any county, except Mobile and Montgomery Counties, to levy an additional tax in order to maintain a county hospital. * * * * The tax, not to exceed 10 mills on each $100, is levied on all property situated within the county and is based upon the valuation of such property as assessed for State taxation. However, the majority of the voters in each affected area must approve such taxation at a special election. Adopted by the people From property taxes: * at the general election November 5, 1946. LOUISIANA 20-004. * * ** Property not exempt under the constitution is assessable at actual fair value. 20-301. SEC. 1. No property shall be assessed at more than its cash value, ascertained as directed by law * The valuation and classification fixed for State purposes shall be the valuation and classification for local purposes, but the taxing authorities of the local subdivision may adopt a different percentage of such valuation for purposes of local taxation. MISSOURI Summary 1947-48 tax legislation. H. B. 77 amends section 11046, revised statutes, by repealing portion limiting increases in tax levies by county courts to 10 percent more than levies for previous year. Approved May 19, 1947, effective immediately. S. B. 310 amends H. B. 912, laws 1945-46, by increasing maximum levy for a public or county hospital from 6 to 12 cents per $100. Approved and effective March 16, 1948. [From Tax Reporter, Commerce Clearing House, Inc.] LIMITATIONS ON TAXING POWERS AND DEBTS, MAY 14, 1948 MICHIGAN Constitution, article VIII: SEC. 10. The board of supervisors of any county may in any one year levy a tax of one-tenth of 1 mill on assessed valuation of said county for construction or repair of public buildings or bridges, or may borrow an equal sum for such purposes, and, in any county where the assessed valuation is less than $10,000,000, the board may levy a tax or borrow for such purposes to the amount of $1,000 but no greater sum shall be raised in any one year unless submitted to election of the county and approved by a majority of those voting thereon. Article X: * * SEC. 7. All assessments hereinafter authorized shall be on property at its cash value. SEC. 21. The total amount of taxes assessed against property for all purposes in any one year shall not exceed one-half percent of said property (provisions for increase). The law, chapter 47: SEC. 1635. The council has authority to tax any one year one-fourth of 1 percent of assessed value sum not to exceed in * Constitution, article VII: NEW YORK * SEC. 9. The State may contract debts in anticipation of taxes and revenue direct and indirect, for purposes and within amounts of appropriations theretofore made. State may also contract debts in anticipation of the receipt of proceeds of the sale of bonds theretofore authorized for the purposes and within the amounts of the bonds so authorized. Article VIII: * ** * SEC. 4. Except as otherwise provided, no county, city, town, or village shall be allowed to contract indebtedness for any purpose or in any manner to an amount which, including existing indebtedness, shall exceed 10 percent of the average assessed valuation of the real estate of such county, city, town, or village subject to taxation as determined by latest completed assessment rolls and the four preceding assessment rolls and no county, other than the county of Nassau, and no town or village shall be allowed to contract indebtedness on and after January 1, 1944, to an amount which, including the existing indebtedness, shall exceed 9 percent of such assessed valuation of real estate and on and after January 1, 1949, to an amount which, including then existing indebtedness, shall exceed 8 percent thereof. No other city, other than the city of New York, shall be allowed to contract indebtedness on and after January 1. 1944, to an amount which, including existing indebtedness, shall exceed 912 percent of such assessed valuation of real estate, and on and after January 1. 1949, to an amount which, including then existing indebtedness, shall exceed 9 percent thereof. |