xt7xgx44tx1x https://exploreuk.uky.edu/dips/xt7xgx44tx1x/data/mets.xml Colorado United States Works Progress Administration 1937 Other contributors include: Robert C. Lowe (Robert Chapin) and Helen R. Sherfey under the supervision of A. Ross Eckler; 21 pages, 27 cm; This bulletin is one of a series presenting state constitutional provisions affecting public welfare; Includes bibliographical references; UK holds archival copy for ASERL Collaborative Federal Depository Program libraries; Y 3.W 89/2:36/C 71 books English Washington D.C.: Works Progress Administration Contact the Special Collections Research Center for information regarding rights and use of this collection. Analysis of Constitutional Provisions Affecting Public Welfare in the State of Colorado text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Colorado 1937 2015 true xt7xgx44tx1x section xt7xgx44tx1x •   V lvll
I/Q;·  I
I H0wAR0 B. MYERS, Dnaacwon
I • DIVISION 0•= S0c1AI. Resexmcw
. •
‘ I
June 1, 1957
· _ 7 Ws?

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O  Y
_ E
• I

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"’ This bulletin is one of a series presenting
State constitutional provisions affecting public wel- ’
· fare, prepared to supplement the State by State digests
of public welfare laws so as to provide in abstract
form the basis for the public welfare services of the T
several States. V
The provisions quoted are those concerned  
, directly with public welfare administration and such ·
others as may substantially affect a public welfare E
program, even though only indirectly related. It would Q
be impossible to consider within the limits of this  
study every remotely connected constitutional provi- v
sion. The indirectly related provisions included,  
° therefore, have been restricted to those concerning _
finance, legislation, and the methods of constitutional  
· amendment. 1
An attempt has been made, by a careful selec-
tion of the most recent cases decided by the highest *
• courts of the States, to indicate wherever possible how I
these provisions have been construed. These cases are  
included in footnotes appended to the constitutional
provisions shown.
It is hoped that these abstracts will be I
• useful to those interested in public welfare questions
in indicating how State and local public welfare admin-
istration may be affected by constitutional powers and

Incidence of Responsibility for Welfare Program .................. 1
Financial Powers and Limitations ................................. 2
• Taxation and Assessments .................................... 2
EXGHlpt1OX'lS••••••·•••••••.•·••....•.....•.•·••.·........••••• 7
Borrowing and Use of Credit ..... . ........................... 8
Ot.h6I" IflCOlI1€••••••.••••••·•••••••.••......••••.•...•..••»·•• 13
Appropriations and Expenditures ............................. 13
° Provisions Affecting Legislation ................................. 14
· Constitutional Amendment or Revision ............................. 20


• Colorado
I. Incidence of Responsibility for Welfare Program
A. Educational, reformatory and penal institutions, and those
for the benefit of insane, blind, deaf and mute, and such other institu-
tions as the public good may require, shall be established and supported
by the state, in such manner as may be prescribed by law.2
B. From and after January 1, 1937,everycitizen of the United
States who has been a resident of the state of Colorado for such period
as the general assembly may determine, who has attained the age of sixty
years or more, and who qualifies under the laws of Colorado to receive a
pension, shall be entitled to receive the same; provided, however, that
° no person otherwise qualified shall be denied a pension by reason of the ,
fact that he is the owner of real estate occupied by him as a residence; i
· n0r`shall any person be denied a pension for the reason that he owns per-
sonal property which by law is exempt from execution or attachment; nor
shall any person be required, in order to receive a pension, to repay, or
1Const1tut1on (1876). &SDub11Sh€d in the 1955 Colorado Statutes Annotated; with all
amendments to June 1, 1957.
A State Constitution sets out limitations upon the exercise of, rather than
grants of, power. In relation to all matters which are proper subjects of leglsla-
• tion, the power of the Legislature is plenary, unless limited specifically by the
Constitution or by necessary implication arising therefrom.
2C0nst1tut1on, Art. VIII, Sec. 1.
The Constitution establishes the Institute for the Education ofhutes, otherwise
Known as the Colorado School for Deaf and Blind, as a State educational institution,
and provides that 1ts management shall be subject to the control of the State under
such laws and reguiatlons as the Legislature may provide. Art. VIII, Sec. 5.
An act prohibiting the sale ofgoods produced in the Colorado penal institutions
• ln competition with similar goods manufactured by free labor was held to be in vio-
latlon of this section of the Constitution, for the reason that it ls the Legisla-
ture*s duty to support such institutions by something more than mere appropriation
bills, and that the actlf carried out would deprive the penitentiary and reformatory
of large sums of money lawfully acquired by convict labor. Hessick vs. Moynlhan, 85 P
C0lO. 45, 262 Pac. 907 (1927).
All arguments with reference to the relative necessities of the various State ,
institutions, and the amount of appropriations sufficient for their maintenance must Q
’ be determined by the Legislature and not by the courts. Parks vs. Commissioners of ;
Sold1ers* and Sa1lors• Home, 22 Colo. 86, 43 Pac. 542 (1896).
The State Highway Department was heldto be a State institution within the mean-
‘ ing of this section. Johnson vs. McDonald. 97 Colo. 524, 49 P. (2d) 1017, 1020 (1935).
O 1

2 Colorado
I. Incidence of Responsibility for Welfare Program——Continued •
promise to repay, the state of Colorado any money paid to him as an old
age pension.5
C. Beginning January 1, 1937, a minimum pension of forty-five
dollars ($45.00) per month shall be paid to those who qualify to receive ·
a pension; and no variation in the amount paid, or other· discrimination
between persons eligible, shall be permitted; provided,however, that the
amount of net income, from whatever source, that any person eligible for •
a pension may have,shall be deducted from the amountof‘the pension which
such person would otherwise receive.4
D. No appropriation shall be made for charitable, industrial,
educationalor·benevolent purposes to anyperson,corporation or community
not under the absolute control of the state,ruu·to any denominational or P
sectarian institution or association.5
II. Financial Powers and Limitations
A. Taxation and Assessments •
(1) scate6 ·
(a) The general assembly shall provide by law for an
annual tax sufficient, with other resources, to defray the estimated ex-
penses of the state government for each fiscal year.7 ,
3Const1tut1on, Art. XXIV, Sec. 3.
These prov1s1ons are not self—execut1ng. In re Interrogatorles by the Governor
Concerning Initiated Amendment N0. 4, 65 P. (2d) 7 (1937). See p. 5, footnote 15.
For further sections of the article establishing the Old Age Pension Fund, and
providing for the allocation of certain moneys to the fund, see p. 4, par. (g) and °
p. 5, pars. (h) and (1).
4Const1tut1on, Art. XXIV, Sec. 6.
See p. 1. par. B.
Footnote 3, above, applies to this section also.
5Const1tut1on, Art. V, Sec. 34.
Thls section relates only to the disbursement of State funds,and 1s, therefore,
not vlolated by an act conferring upon the counties the power to devote county funds °
for the treatment of their lndlgent inebrlates. In re House, 25 Colo. 87, 46 Pac.
Gln holdlng that the Legislature could levy taxes forpublic purposes only.the Supreme
Court stated: "what are public purposes, and what does properly constitute a public
burden, are questlons wh1ch the Legislature must declde upon its own Judgment, and 1n
respect to wh1ch 1t ls vested w1th a large dlscretlon wh1ch cannot be controlled by
the courts, except perhaps where 1ts action 1s clearly evas1ve,and where, under pre- •
tense of a lawful authorlty, lt has assumed to exerclse one that 1s unlawful.” M11-
helm et al., vs. Moffat Tunnel Improvement D1str1ct, et al., 72 Colo. 268, 211 Pac.
649 (1922); afflrmed, 262 U. S. 710,43 Sup. Ct. 694, 67 L. Ed. 1194 (1923).
7Const1tut1on, Art. X, Sec. 2.
The ”annual tax" provided for 1n this section refers to a property tax, but the
"other resources” mentioned lnclude exclse taxes, such as poll taxes, privilege, and
occupatlon taxes. Parsons vs. People, 32 Colo. 221, 76 Pac. 666 (1904). ·

 ‘ •
· Colorado 3
’ II. Financial Powers and Limitations—Continued
1 A. Taxation and Assessments—Continued
I (1) state-continued
_  ° (b) All taxes shall be uniform upon the same class of
l subjects within the territorial limits of the authority levying the tax,
1 • and shall be levied and collected under general laws, which shall pre-
" ' scribe such regulations as shall secure a just valuation for taxation of
all property, real and personal;8 * * *
 _ (c) The rate of taxation on property, for state pur-
1 poses, shall never exceed four mills on each dollar of valuation; pro-
I • vided, however, that in the discretion of the general assembly an addi-
tional levy of not to exceed one mill on each dollar of valuation may from
time to time be authorized for the erection of additional buildings at,
and for the use, benefit, maintenance, and support of the state educa-
tional institutions; provided, further, that the rate of taxation on prop-
• erty for all state purposes, including the additional levy herein provided
for shall never exceed five mills on each dollar of valuation, unless
· otherwise provided in the constitution.9
This sectlon means that the Legislature 1s HOB required to levy the •'annual tax"
_, unless the other sources of revenue, such as exc1se taxes, prove lnsufficlent to de-
fray the estimated expenses of the State government. Johnson vs. McDonald, 97 Colo.
524, 49 P. (2d) 1017 (1955).
This section was held not to require that all expenses of the State government
be borne by the State. Consequently, it was within the Leg1slature's power to re-
quire the city and county of Denver to pay for the registration of all local births
and deaths under an act creating and defining the duties of the State board of health.
Further. that cltles having exclusive control of thelr local affalrs are nevertheless
· mere agencies of the State government as to matters of a public character, and as
such may be required to perform at their own expense many duties of a governmental
nature. People ex rel. Hershey vs. McN1chols, 91 Colo. 141, 15 P. (2d) 266 (1952).
8Const1tut1on, Art. X, Sec. 5.
It was held that the word *property•' within the meaning of th1s Section is used
In 1ts broad and general sense to lnclude all property, tangible and Intangible, sub-
ject to absolute or qualified ovmershlp. Board of Commlssloners of Arapahoe County
vs. Rocky Mountain News Printing Company, 15 Colo. App. 189, 61 Pac. 494 (1900).
• The unlformlty requirement of this section applies only to direct or ad valorem
property taxes, and requires only that in its imposition a tax must operate equally
on all subjects under l1ke circumstances. The section does not concern ltself with
the dlstrlbutlon of the tax after 1t 1s collected. In re Hunter's Estate, 97 Colo.
279, 49 P. (2d) 1009 (1955).
An lnherltance tax 1s not a property tax, but 1s an excise tax Imposed upon the
pr1v1lege of taklng property by w1ll or descent. Such a tax 1s, therefore, not sub-
ject to the uniformity requirement of this section. In re Hunter's Estate, 97 Colo.
‘ 279, 49 P. (zd) 1009 (1955).
S1m1larly specific taxes on privileges, occupations, trades, or professions do
not come within the uniformity clause of this section. Parsons vs. People, 32 Colo.
221, 76 Pac. 666 (1904).
9Const1tut1on, Art. X, Sec. 11.
Q The Legislature may not exceed the rate of 4 mills ln levying taxes on property,
but 1t 1s not precluded from levylng other klnds of taxes, such as on privlleges and
• occupatlons. In re Magnes' Estate, 52 Colo. 527, 77 Pac. 855 (1904.).

4 Colorado · p
II. Financial Powers and Limitations—Continued ’ (
A. Taxation and Assessments-Continued
(1) State—Continued `
(d) The general assembly may levy income taxes, either , V
graduated or proportional, or both graduated and proportional, for the .1
support of the state, or any political subdivision thereof, or for public ‘ 
schools, and may, in the administration of an income tax law, provide for °
special classified or limited taxation or the exemption of tangible and
intangible personal property.1O
(e) * * * the general assembly shall enact laws
classifying motor vehicles, trailers and semi—trailers and requiring the •
payment of a graduated annual specific ownership tax thereon, which said
tax shall be in addition to, and payable to the proper county officer at ·
the same time as state registration or license fees.
Said graduated annual specific ownership tax shall
be in lieu of all ad valorem taxes upon such property, and shall be dis-
tributed, apportioned, credited and paid over to the state and its polit- • _
ical subdivisions as provided by law with reference to ad valorem taxes;
provided * * * that such laws shall not exempt from ad valorem taxa- ·
tion motor vehicles, trailers and semi-trailers in process ofmanufacture,
or held in storage, orwhich constitute the stock of manufacturers, or dis-
tributors thereof or of dealers therein.11 n
(f) On and after July 1, 1935, the proceeds from the
imposition of any license, registration fee or other charge with respect
to the operation of any motor vehicle upon any public highway in this
state and the proceeds from the imposition of any excise tax on gasoline
or other liquid motor fuel shall, excepttzosts of administration, be used •
exclusively for the construction, maintenance, and supervision of the
public highways of this state.12 V
(g) A fund tobe known as the old age pension fund is -
hereby created and established in the treasury of the state of Colorado.
There is hereby set aside, allocated and allotted to the old age pension •
fund sums and money as follows:
Beginning January 1, 1937, eighty-five per
cent. of all net revenue accrued or accruing, received or receivable from
any and all excise taxes now or hereafter levied upon sales at retail, or
any other purchase transaction; together with eighty—five per cent. of •
the net revenue derived from any excise taxes now or hereafter levied upon
1OConst1tut1on, Art. X, Sec. 17.
11Const1tut10n, Art. X, Sec. 6, adopted November 1936. ·
12Const1tut1on, Art. X, Sec. 18- n •

Colorado _ 5
• II. Financial Powers and Limitations-—Continued
A. Taxation and Assessments-—Continued
(1) state-conunued
the storage, use, or consumption of any commodity or product; together
I • with eighty—five per cent. of all license fees imposed by the provisions
of sections 1 to 36, both inclusive, of chapter 144 of volume 4 of the
• 1935 Colorado Statutes Annotated, and amendments thereto; provided, how-
ever, that no part of the revenue derived from excise taxes now or here-
after levied, for highway purposes, upon gasoline or other motor fuel,
shall be made a part of said old age pension fund.
Beginning January 1, 1937, eighty-five per
cent. of all net revenue accrued or accruing, received or receivable from
° taxes of whatever kind upon all malt, vinous, or spirituous liquor, both
intoxicating and non-intoxicating, and license fees connected therewith.
All unexpended money in any fund of the state
of Colorado, or political subdivision thereof, as of January 1, 1937, which
prior to said date has been allocated to the payment of an old age pension.
A • All grants in aid from the federal govern-
ment for old age assistance.
· All inheritance taxes and incorporation fees
appropriated under sections 29, 30 and 31 of chapter 119, of volume 4 of
the 1935 Colorado Statutes Annotated, for old age pensions.
_· Such other money as may be allocated to said
fund by the general assembly.13
(h) All the moneys deposited in the old age pension
fund shall remain inviolate for the purposes for which created, and no
part thereof shall be transferred to any other fund, or used or appro-
• priated for any other purpose.14 ‘
(i) °·* * "F no law providing revenue for the old age
. pension fund shall be repealed, nor shall any such law be amended so as
to reduce the revenue provided for the old age pension fund, except in
• 15Const1tut1on, Art. XXIV, Secs. 1 and 2, adopted November 19:56.
See p. 1. par. B and p. 2, par. C.
In an advisory opinion the Supreme Court stated that this section was self-
executing insofar as It relates to the establishment of the above specified •*old age
pension fund.•• However, other sections of Ché amendment setting out provisions re-· 7
latingto the payment of the pensions (see p. 1, par. B and p. 2, par. C for these {
provisions) were In the same opinion held to be not self—execut1ng, and to require ,
enabling legislation in order to effectuate them.
' Until further enabling acts were passed the statutes governing old age assist-
ance and the administration of the State welfare Fund remained in effect except as
modi fled by the establlshmentof the Old Age Pension Fund which became the fund from I
which payments to recipients are paid. In re Interrogatories by the Governor Con-
cerning Initiated Amendment N0. 4, 65 P. (2d) 7 (1957).
· 14Const1tut1on, Art. XXIV, Sec. 7.
See footnote 13, above.

 _ •
6 Colorado ·
II. Financial Powers and Limitations-—Continued •
A. Taxation and Assessments-Continued
(1) State-Continued
the event that at the time of such repeal or amendment, revenue is pro- •
vided for the old age pension fund in an amount at least equal to that
provided by the measure amended or repealed during thelgalendar year im-
mediately preceding the proposed amendment or repeal. •
(j) No county, city, town or other municipal corpora-
tion, the inhabitants thereof, nor the property therein, shall be released
or discharged from their or its proportionate share of taxes to be levied
for state purposes.16 ,
(k) See page 9, paragraph (b).
. . 1'7
(2) Counties and Other Local Units
(a) The general assembly shall not impose taxes for
the purposes of any county, city, town or other municipal corporation,
but may by law, vest in the corporate authorities thereof respectively, '
the power to assess and collect taxes for all purposes of such corpora-
15Const1tut10n, Art. XXIV, Sec. 5.
See p. 5, footnote 15. o
16Const1tut1on, Art. X, Sec. 8.
17Sec. 13 of Art. XIV of the Constitution provldes that the organization and classi-
f1cat1on of c1t1es and towns, and the powers of same w1th1n each class, shall be
provlded for by general laws.
Sec. 6 of Art. XX of the Constltutlon provides that c1t1es and towns of 2,000
populatlon or over may adopt charters for the government and administration of their
Local and municipal matters. It is expressly provided that such charters and ord1— •
nances adopted pursuant thereto shall supersede within the territorial l1m1ts of
such clty or town any state Law in conflict therewith. The charters may provide for
the levy of taxes and assessments; the lssuance, liquidation, and refunding of mu-
n1c1pal bonds and dlstrlct lmprovement bonds. The terms of this sectlon also apply
to the city and county of Denver. Secs. 1 and 4 of Art. XX of the Constitution pro-
v1de for the lncorporatlon of the city and county of Denver as a single body poll-
tlc, and vest the council with the power to fix the annual rate of taxation on prop-
erty for c1ty and county purposes. •
See footnote 18,below.
18Const1tut1on, Art. X, Sec. 7.
An act which set the maximum upon levies which might be made for county pur-
poses, and which provided that this limit might be exceeded by the county commis-
sioners with the approval of the State Tax Commission was held valid under this
section. The Supreme Court stated that the right to lmpose taxes for county expenses
ls vested excluslvely ln the counties by the Constltutlon but that the Constitution •
does not prohlblt curtallment by the Legislature of the total amount of such taxes.
Tallon vs. Vlndlcator Consol1dated Gold hlnlng Company, et al., 59 Colo. 316, 149
Pac. 108 (1915).
Municipal corporatlons were deflned as being bodies corporate and polltlc,
created by law chiefly for the purpose of administering their local affairs, but
also for the purpose of acting as State agencies to assist 1n the c1v1l government ·
of the State. They are ” =•= >•= =•= endowed with such powers * =•= =•= as are con-
ferred upon them by statute and none other, except such powers as arise by necessary o

 Colorado 7
• II. Financial Powers and Limitations-Continued
A. Taxation and Assessments——Continued
V (2) Counties and Other Local Units-—Continued
A (b) See page 4, paragraph (d).
~ • (c) See page 3, paragraph (b), and footnote 8.
(d) See page 6, paragraph (j).
(e) See page 12, paragraph (a).
, B. Exemptions
· (1) The property,real andpersonal, of thestate, counties,
cities, towns and other municipal corporations and publiclibraries, shall
• be exempt from taxation.19
(2) * * * the personal property of every person being
the head of a familyto the value of $200 shall be exemptfibm taxation.2O
=Z= >.‘= =Z<
• or reasonable lmplication, to enable them to execute their functions; the Legisla-
ture, ln the absence of limiting constitutional provisions, has plenary power to
adopt, for their government, such measures as shall * * * best accomplish the
. purpose for which they are created =•= =»= =•=.¤ Mllhelm, et al., vs. Moffat Tunnel
Improvement District, et al., 72 Colo. 268, 211 Pac. 649 (1922); affirmed, 262 U.S.
710, 45 Sup. Ct. 694, 67 L. Ed. 1194 (1925).
An act creating a State board ofhealth and requiring each municipality to bear
the expense of the registration of local blrths and deaths was held to be a valid
• exercise of the State police power and promotive of the public health, safety, and
welfare. The court stated that notwithstanding constitutional provisions granting to
certain cities exclusive control of local government,such ”a municipality continued
( to be * * * an agency of the state for the purpose of government, and * * *
‘ amenable to state control in all matters of a public, as distinguished from matters
. of a local, character.” People ex rel. Hershey vs. MCNICDOIS, 91 Colo. 141, 13 P.
(2d) 266 (1952).
An act levylng a State-wide lnheritancetax for the purpose of provldlngold age
• pensions and declaring that the revenues collectedby the State under the act should
be paid outby the county authorities was held valid under this section as being for
a State-wlde public purpose. In re Hunter•s Estate, 97 Colo. 279, 49 P. (2d) 1009
' (1955).
”The municlpalltyof Denver, though createdby a constltutionalamendment * * *
1s Just as much an agencyof the state for the purpose of government aslf 1t was or-
ganized under a general law passed by the General Assembly * * *. It is as much
amenable to state control in all matters of a public, as distinguished from matters
• of a local character, as are other mun1c1pal1t1es.¤ Keefe vs. People, 57 Colo. 517,
87 Pac. 791 (1906). See People ex rel. Hershey vs. McN1chols, p. 1, footnote 2.
See p. 12, last two pars. of footnote 52.
19Const1tut1on, Art. X, Sec. 4.
C1ty—owned land not necessary for municipal purposes was held exempt from tax-
ation. Referring to this section the Supreme Court stated, ¤the framers of the Con-
stltutlon must have intended to exempt all classes of municipally owned property
• * * * there ls but one condition essentlal to * * * exemption from taxation,
and thatis, ownership by the clty * * *.” Stewart vs. City and County of Denver,
70 Colo. 514, 202 Pac. 1085 (1922).
A State tax upon the right to sell or use gasoline was held to be validly 1m-
posed upon c1t1es for the reason that such tax was not a tax upon the c1ty•s prop·
erty, but was an excise or privilege tax. People vs. C1ty and County of Denver, 84
· Colo. 576, 272 Pac. 629 (1928).
2OConst1tut1on, Art. X, Sec. 5.

8 Colorado ·
II. Financial Powers and Limitations—Continued •
B. Exemptions-—Continued
(3) * * * (The General Assembly) may, in the adminis- X
tration of an income tax law, provide for special classified or limited ·
taxation or the exemption of tangible and intangible personal property.21 ‘
(4) Property, real and personal, that is used solely and Q
exclusively for religious worship, for schools or for strictly charitable A '
purposes, also cemeteries not used or held for private or corporate pro-
fit, shall be exempt from taxation, unless otherwise provided by general `
].H.W•22 I
(5) All laws exempting from taxation, property other than •
that hereinbefore mentioned, shall be void;23 * * *.
C. Borrowing and Use of Credit
(1) state
(a) The state shall not contract any debt by loan in '
any form, except to provide for casual deficiencies of revenue, erect pub-
lic buildings for the use of the state, suppress insurrection, defend the ·
state, or, in time of war, assist in defending the United States; and the
amount of debt contracted in any one year to provide for deficiencies of
revenue, shall not exceed one-fourth of a mill on each dollar of valua- •
tion of taxable property within the state, and the aggregate amount of
such debt shall not any time exceed three-fourths of amill on each dollar
of said valuation, until the valuation shall equal one hundred millions
21Const1tut10n, Art. X, Sec. 17. '
22Const1tut1on, Art. X, Sec. 5, as amended November 1956.
Under th1s section as 1t.1TOI‘m8I‘ly read exempting ••l0ts, with the buildings
thereon, 1f said bulldlngs are used solely and exclusively >•= * »•= for schools,•
etc., thé property of a private school was held exempt from taxation. In 1ts opin-
1on the Supreme Court stated that: •·The term •sch0ols• is broad enough to include
1nst1tut1ons run for profit, and we find no reason for l1m1t1ng its plain mean1ng.¤
Pltcher vs. hiss Wolcott 8ChOOl Association. 65 Colo. 294, 165 Pac. 608 (1917). •
The property of a nonprofit 1nst1tut1on conducted as a home for consumpt1ves
w1th a charge made to all patfents was held tax exempt as dedicated to charitable
purposes. The right to exemption not being affected by the fact that patients were
required to pay for their care, as long as the receipts did not exceed the expenses
and were devoted to the purposes for whlch the 1nst1tut1on was founded. Bishop and
Chapter of Cathedral, etc., vs. Treasurer of City and County of Denver. 57 Colo. 578.
86 Pac. 1021 (1906).
It was held unnecessary 1n claiming a tax exemption to prove that property of •
an organization was used solely for public charltable purposes, 1t belng sufficient
1f the property was used pr1nc1pa1ly for the benefit of a certaln class; 1.e.,w1ves,
w1dows, and orphans of members of the organization. Horton vs. Colorado Springs
Masonic Building Society. 64 Colo. 529, 175 Pac. 61 (1918). ‘
23Const1tut1on, Art. X, Sec. 6. ·
The remainder of this section, adopted November 19556, is set forth on p. 4,
par. (e). ·

 • .
Colorado 9
• II. Financial Powers and Limitations-Continued
C. Borrowing and Use of Credit-Continued
, (1) State-Continued
of dollars, and thereafter such debt shall not exceed one hundred thous-
• and dollars; andthe debt incurred in any one year for erection of public
· buildings shallnot exceed one—half¤nillon each dollar of said valuation;
5 • and the aggregate amount of such debt shall never at any time exceed the
Y sum of fifty thousand dollars (except as provided in section fiveof this
I article),24 * * *.
(b) In no caseshallany debt above mentioned in this
article25 be created except by a law which shall be irrepealable, until
• the indebtedness therein provided for shall have been fully paid or dis-
_ charged;suchlaw shall * * * provide for thelevyof a tax sufficient
to pay the interest on and extinguish the principal of such debt within
the time limited by such law for the payment thereof, which in the case
of debts contracted for the erection of public buildings and supplying
• deficiencies of revenue shall not be less than ten nor more than fifteen
years, and the funds arising from the collection of any such tax shall
· not be applied to any other purpose than that provided in the law levying
the same, and when the debt thereby created shall be paid or discharged,
· Constitution, Art. XI, Sec. 3.
This section further provides for spec1f1c bond issues totaling $11,000 for
highway purposes, and$2,115,000 for State warrants issued durlng the years 1887 and
”Th1s section gives to the state the power to contract a debt, byloan, to pro-
v1de for the payment of expenses incurred to suppress insurrection, subject to no
limitation as to the amount.' In re Contracting of State Debt by Loan, 21C0l0. 399,
41 Pac. 1110 (1895).
• ”A casual deficiency of the revenue is one that happens by chance or accldent,
and wlthout design or intention to evade the constitutional 1nh1b1t1on.” In re Ap-
propriations by General Assembly, 13 Colo. 316, 22 Pac. 464 (1889).
An amendment to Art. X of the Constitution (see p. 4, par. (f)) provides that
all recelpts from exclse taxes on motor vehicle registrations and motor fuels shall
be devoted exclusively to highway purposes. An act passed subsequent to the adop-
tion of this amendment authorized the State highway department to enter into a con-
tract wlth the Federal Government whereby the Federal Government was to advance
, $25,000,000 to the department for the construct1on and maintenance of hlghways. The
highway department was authorized to Issue to the Federal Government revenue antic-
lpation warrants payable annually beginning HOD later than 3 and extending not more
than 30 years thereafter and payable only out of the special fund EUEHOPIZEG by the
amendment. The act was held not to create a debt wltnln the meanlng of the Consti-
tution for the reason that the payment of the warrants could never burden revenues
8Va1lab1e for general State purposes. but only pledged a special fund already 3110-
cated to highway purposes. Johnson vs. McDonald, 97 Colo. 324, 49 P. (2d) 1017
Q (1935).
'Slnce the purpose of section 3 of article 11 is to prevent the pledglng of
revenues of future years, a statute whlch at the * * * time lt creates a debt
creates the fund to pay lt, and which fund would not be otherwise available for
general purposes, ls clearly outside the constitutional proh1b1t1on.' In re Senate
Resolution No. 2. 94 Colo. 101, 51 P. (2d) 325 (1933); Johnson vs. McDonald, 97 Colo.
324, 49 P. (2d) 1017 (1935).
• 25These debts are set out on p. 8, par. (a).

10 Colorado •
II. Financial Powers and Limitations-Continued •
C. Borrowing and Use of Credit-·Continued
(1) State——Continued
such tax shall cease and the balance, if any, to the credit of the fund ·
shall immediately be placed to the credit of the general fund of the
. . • L
(c) A debt for the purpose of erecting public build-
ings may be created by law as provided for in section four of this article, y
[p. 9, par. (b)] not exceeding in the aggregate three mills on each dollar
of said valuation; provided, that before going into effect, such law shall ~
be ratified by the vote of a majority of such qualified electors of the
state as shall vote thereon at a general election under such regulations ° I
as the general assembly may prescribe.27
(d) Neither the state, nor any county, city, town,
township or school district shall lend or pledge the credit or faith
thereof, directly or indirectly, in any manner to, or in aid of, any per-
son, company or corporation, public or private, for any amount, or for °
any purpose whatever; or become responsible for any debt, contract or
liability of any person, company or corporation, public or private, in or ·
out of the state.2B
(e) Neither the state, nor any county, city, town,
township or school district shall make any donation or grant to, or in •
aid of, or become a subscriber to, or shareholder in any corporat