Show AN al T explanation OF TRE THE AMEND AMEN D MENT FOR classification OF PROPERTY PROPERTY by thos sevy this amendment proposes changes in sections 2 and 3 of article 13 to allow the legislature greater liberty in III providing for a tax which will shift part of the burden from tangible property to income As the state constitution now stands it provides all property including both tangible and intangible must be assessed at uniform and equal rates for taxation purposes while this may ap appear p ea r to b bo 0 a fa fair r ba basis sis I 1 it t hjad been proved by long experience in this and all other states to result in the most inequitable distribution of the tax burion burden the constitution exempts mart gage loans and stocks completely and as a result all ali intangible property Is thus placed in a class where it cannot bo be brought to the tax rolls consequently while the present constitution may appear to require a uniform and equal rate of assessment for all property it la is limited in actual effect to tangible property such as farms homes livestock etc less than ajie one and one halt half percent of the states valuation in 1929 was intangible prop property erty though it la Is well known that there are hundreds of of millions of intangibles owned in fix utah wo mity may say therefore ei that for all practical purposes the intangible class of property in utah 1 14 not assessed at all this Is due to the tact fact that the greater part of intangibles are exempt by our constitution co n secondly to the fact that what remains Is ia principally money in the banks and this Is not assessed because the tax rates lates are so high the cannot pay them without being confiscated opponents of the amendments are attempting to tell the people that our present constitution requiring the full taxation of intangibles intangible s should bo be enforced this is ia a false argument recognized as such not only by the taxing authorities of this state but of every other er state in the union w which aich has attempted to operate under the uniform rule it cannot be done there Is ia nothing so complicated about the proposed amendment to justify the thick smoke screen of contusion confusion and doubt behind which the opponents of tax reform have attempted atte ampt to cover their activities the changes proposed by the second amendments mend ments merits upon which the people will vote are simply to continue to tax tangible property as aa we are now doing but repeal all the exemptions granted gi anted to intangible property and give power to the tha legislature to classify and tax intangibles at low rates either as ai property or to tax the income received from bom it the selection la Is left to the legislature to do ane or the other but not both and ti 11 it 1 the tha income is taxed hen intangibles carmot cannot be bc taxed gs as property there are 34 states doing what utah Is proposing to do by this amendment men dment namely place a portion of the tax load on intangible property if this mend ment no 2 Is adopted all stock of corporations po rations whether foreign or domestic all bonds all notes til all securities all credits will wi be subjected to taxa han such rate aa havo been proved by to be economically sound in other states would replace our present condition under which we are gettling practically lib no revenue from this class of property and its just share af pf of tho the burden has been shifted upon tangible holdings holding it Is particularly sign significant that this amendment out requires the money raised from intangible or income taxes to be applied to reduce the tax load on tangible property this would be a constitutional m mandate and no legisla t tave iva or administrative authority could ignore it the question involved in this amendment men dment may be briefly stated thus do the payers of utah want to continue to collect all the direct taxes from farms homesy homes livestock etc or do they want the owners of stocks bonds notes mortgages credits etc to help carry the load if the taxpayer wants the tax to be collected from properly alone then he should vote no but it he wants intangible property taxed also and part dart of the untaxed income to be brought to the tax rolls then lie he should vote yes yea to a amendment no 2 |