In re Limitation of Taxation

Citations

• 3 S.D. 456
• 54 N.W. 417
• 1893 S.D. LEXIS 9

Syllabus

<p>1. Const, art. 11, § 1, provides that the legislature shall provide for an annual tax to defray the ordinary expenses of the state for each year, not to exceed in any one year two mills on each dollar of the assessed valuation; and whenever such ordinary expenses shall exceed the income of the state for such year, the legislature shall provide for levying a tax for the ensuing year, sufficient, with the other sources of income, to pay the deficiency of tlie preceding year, together with the expenses of such ensuing year; and for the purpose of paying the public debt the legislature shall provide for levying a tax annually, sufficient to pay the annual interest and the principal within 10 years, provided that the annual tax for the payment of the interest and principal of the public debt shall not exceed in any one year two mills on each dollar of the assessed valuation. Held, that the provision relates to three distinct items of taxation: (1) The annual tax for “the estimated ordinary expenses of the state;” (2) taxation to pay deficiencies from preceding years; (3) taxation to pay the public debt.</p> <p>2. The legislature is limited to a two-mill tax for the first and third items mentioned; but when a deficiency is shown to exist, resulting from the excess of ordinary expenses over the fund available for that purpose, the legislature has power to levy an assessment sufficient to meet the deficiency, without regard to the .two-mill limitation, and the money raised for such deficiency must be used exclusively for its payment, and cannot be diverted to any other use.</p> <p>3. Const, art. 11, section 8, provides that “no tax shall be levied, except in pursuance of law, which shall distinctly state the object of the same, to which the tax only shall be applied.” Art. 32, section 2, provides that “the general appropriation bill shall embrace nothing but appropriations for ordinary expenses of the executive, legislative, and judicial departments of the state, the cur