xt7xks6j462r https://exploreuk.uky.edu/dips/xt7xks6j462r/data/mets.xml Utah United States. Works Progress Administration Lowe, Robert C.(Robert Chapin), 1907- Lander, David S. 1937 15 p.; 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call Number Y 3.W 89/2:36/Ut 1 books English Washington DC: Works Progress Administration This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Utah Works Progress Administration Publications Public welfare -- Law and legislation -- Utah Social workers -- Legal status, laws, etc. -- Utah Constitutional law -- Utah Analysis of Constitutional Provisions Affecting Public Welfare in the State of Utah text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Utah 1937 1937 2019 true xt7xks6j462r section xt7xks6j462r .l, Mal,\»wwm C , 7p

9 a
N 0 W O R K S P R O G R E S S A D M IN I S T R A TI 0 N
' HARRY L. HOPKINS, ADMINISTRATOR

CORRINGTON GILL, ASSISTANT ADMINISTRATOR
HOWARD B. MYERS, DIRECTOR

, . DIVISION OF SOCIAL RESEARCH

. .

1, o

T ANALYSIS OF CONSTITUTIONAL PROVISIONS

E AFFECTING PUBLIC WELFARE IN THE STATE OF
; UTAH

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t APRIL 1, 1957

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PREPARED BY i
ROBERT C. LOWE AND DAVID S. LANDER %
LEGAL RESEARCH SECTION I
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UNDER THE SUPERVISION OF V f

A. Ross ECKLER, COORDINATOR OF SPECIAL INQUIRIES 4
DIVISION OF SOCIAL RESEARCH '

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 5
U
a
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.E PREFACE
‘ e
E This bulletin is one of a series presenting
E c , State constitutional provisions affecting public wel—
E fare, prepared to supplement the State by State digests
E of public welfare laws so as to provide in abstract
form the basis for the public welfare services of the
E several States.
o The provisions quoted are those concerned
. " directly with public welfare administration and such
others as may substantially affect a public welfare
, program, even though only indirectly related. It would
i be impossible to consider within the limits of this
1" study every remotely connected constitutional provi—
E ‘ sion. The indirectly related provisions included,
E' ._ therefore, have been restricted to those concerning
E . ' finance, legislation, and the methods of constitutional
; amendment.
E An attempt has been made, by a careful selec—
1 ° tion of the most recent cases decided by the highest
E courts of the States, to indicate wherever possible how
E these provisions have been construed. These cases are
)E included in footnotes appended to the constitutional
E provisions shown.
9 It is hoped that these abstracts will be
E useful to those interested in public welfare questions
‘E in indicating how State and local public welfare admin—
E E istration may be affected by constitutional powers and
limitations .
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CONTENTS
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Page
Incidence of Responsibility for Welfare Program.................. 1
. Financial Powers and Limitations................................. 2
, a
.1 Taxation and Assessments.................................... 2
I Exemptions 6
Borrowing and Use of Credlt 8
*' Other Income 10
g ‘1 ’ Appropriations and Expenditures............................. 11
. I 9 Provisions Affecting Legislation................................. 11
Constitutional Amendment or Revision............................. 14
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‘ Utah
0 i o
? ANALYSIS OF CONSTITUTIONAL PROVISIONS AFFECTING
PUBLIC WELFARE IN UTAH1
i
. . I. Incidence of Responsibility for Welfare Program
. ‘ A. Reformatory and Penal Institutions, and those for the bene—
O . . . . .
fit of the Insane, Blind, Deaf and Dumb, and such other institutions as
the public good may require, shall be established and supported by the
State in such manner, and under such boards of control as maybe prescribed
by law.2
_ B. Institutions for the Deaf and Dumb, and for the Blind, are
0 o . .
hereby established. All property belonging to the School for the Deaf
’ - and Dumb, heretofore connected with the University of Utah, shall be trans-
ferred to said Institution for the Deaf and Dumb.5 "r’ ’3" ’5‘
, C. Until otherwise provided by law, the Governor, State Treas—
. ‘ urer and State Auditor shall constitute a Board of Insane Asylum Commis-
i O . . . .
“ Sioners. Said Board shall have such superVismn of all matters connected
. C with the State Insane Asylum as may be provided by law.4
D. Until otherwise provided by law, the Governor, Attorney—
General and Superintendent of Public Instruction shall constitute a Board
1 _________._._
O ‘ o
I 1Constitution (1896), as published by Milton H. Welling, Secretary or State (1933);
i
3' with all amendments to April 1, 1957.
f "The provisions of this Constitution are mandatory and prohibitory, unless by
s express words they are declared to be otherwise." Constitution, Art. I, Sec. 26.
"It is a truism recognized by all the authorities that the Legislature of a state
~ is vested with the whole of the legislative power of the state and may deal in any
=1 subject within the scope of constitutional government except as such power is limited
5 i . or directed by express provisions of the Constitution or necessary implication arising
1 therefrom. 'State Constitutions are limitations, and not grants, of powers." Lehi
> City vs. Meiling, 48 P. (2d) 530, 555 (1955).
Restrictions upon the use of property and the right to contract are valid if im-
‘ posed in the interest of the whole people, such restrictions being a proper exercise
i of the police power by the Legislature. "Many attempts have been made to define police
1 power. There is good reason to say that the multitude of such attempts with the many
’3! variations in phrasing the matter have not added very much to the simple expression,
5 j . that it is the power to make all laws which in contemplation of the Constitution pro-
' mote the public welfare. This both defines the power and states the limitations on
f its exercise, a: a: *.I State vs. Packer Corporation, 297 P. 1013, 1016 (1931).
1 2Constitution, Art. XIX, Sec. 2.
5Constitution, Art. x, Sec. 10.
. . 4Constitution, Art. VII, Sec. 14.
_. The government and control of the Utah State Hospital for the Insane is vested
‘ 0 in a board, consisting of the Governor, the State Treasurer and the State Auditor.
5 Revised Statutes (1935), title 85. ch. '7, par. 2.
0 v Q 1
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2 Utah
I. Incidence of Responsibility for Welfare Program—Continued . '

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of Reform School Commissioners. Said Board shall have such supervision '
of all matters connected with the State Reform School as may be provided I
by law.5 E‘

E
E
II. Financial Powers and Limitations
0 . o
A. Taxation and Assessments ‘
(1) State . . o
(a) All tangible property in the State, not exempt .
under the laws of the United States, or under this Constitution, shall E
be taxed in prOportion to its value, to be ascertained as provided by E
law 9‘ '4‘ ‘v‘. ‘ ;'
E
The Legislature shall provide bylaw for an annual o E i
tax sufficient, with other sources of revenue, to defray the estimated E
ordinary expenses of the State for each fiscal year. For the purpose of
paying the State debt, if any there be, the Legislature shall provide for E
levying a tax annually, sufficient to pay the annual interest and to pay ..
the principal of such debt, within twenty years from the final passage of . ‘ c
the law creating the debt.6 j
(b) The Legislature shall provide by law a uniform . y g
and equal rate of assessment and taxation on all tangible property in the
State, according to its value in money, and shall prescribe by law such
regulations as shall secure ajust valuation for taxation of such prOperty, . a i
so that every person and corporation shallpay a tax in proportion to the E
' value of his, her, or its tangible property,provided that the Legislature x"
may determine the manner and extent of taxing transient live stock and ‘1
live stock being fed for slaughter to be used for human consumption.
5 c a
Constitution, Art. VII, Sec. 15.
The government and control of the State Industrial School is vested by statute ’
in a Board of Trustees, consisting of the Attorney General, the State Superintendent
of Public Instruction, and five resident citizens or the State. Revised Statutes
(1953). title 85, ch. 6, par. 2. The five citizen members or the Board of Trustees
are appointed by the Governor by and with the consent or the Senate. Revised Statutes
(1933). title as. ch. 1. par. 1. ,1.
6Constitution, Art. XIII, Sec. 2, as amended (1930). E. 5E ‘
The requirement that property be taxed in proportion to its value does not apply .
to special assessments which are based on the benefits accruing. Lundberg Vs. Green
River Irrigation District, 40 U. 85, 119 P. 1039 (1911). A levy imposed solely on an
acreage basis and not according to value, on all lands within a drainage district,
was held to be a ”special assessment" rather than a "property tax." State ex rel.
Ferry vs. Corinne Drainage District of Box Elder County.48 U. 1, 156, P. 921 (1916).
Water rights of a mining corporation are taxable under this section. Utah Metal 6 c
8; Tunnel Company vs. Groesbeck, 62 U. 251, 219 P. 248 (1925).
The assessment of all the coal lands in a county,at a flat rate per acre, was ‘
held to violate the uniformity requirement or this section, because the court took
Judicial notice of the fact that all the coal lands were not of equal value per acre.
Ririe vs. Randolph, 51 U. 274. 169 P. 941 (1917). é C
' 9‘

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Utah 3
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E II. Financial Powers and Limitations—Continued
)
a , o _ _
A. Taxation and Assessments—Continued
E (1) State—Continued
l Intangible property may be exempted from taxation as property or it may
be taxed in such manner and to such extent as the Legislature may provide.
. 0 Provided that if intangible property be taxed as property the rate thereof
E shall not exceed five mills on each dollar of valuation. When exempted
, from taxation as property, the taxable income therefrom shall be taxed
° ’ 9 under any tax based on incomes, but when taxed by the State of Utah as
E property, the income therefrom shall not also be taxed. The Legislature
E may provide for deduction, exemptions, and or offsets on any tax based
I _
E upon income. The personal income tax rates shall he graduated but the
E maximum rate shall not exceed six per cent of net income. No excise tax
. " i, rate based upon income shall exceed fourper cent of net income. The rate
E limitations herein contained for taxes based on income and for taxes on

' intangible property shall be effective until January 1, 1937, and there—

, after until changed by law by a vote of the majority of the members elect-

, ed to each house of the Legislature. All revenue received from taxes on

. E 6 income or from taxes on intangible property shall be allocated as follows:
, 75 per cent thereof to the State District School Fund and 25 per cent

. E C thereof to the State General Fund and the State levies for such purposes
E shall be reduced annually in proportion to the revenues so allocated;
provided that any surplus above the revenue required for the State Dis—

E trict School Fund as provided in Section 7 of this Article shall be paid

° E ‘ into the State General Fund.7

i. ,

‘1

E 7Constitution, Art. XIII, Sec. 5, as amended (1930).

" The requirement of uniformity and equality does not apply to special assessments.

’ Lundberg vs. Green River Irrigation District, 40 U. 83, 119 P. 1039 (1911).

0 0 State Constitutions are mere limitations and not grants of power, and the power
of taxation is vested in the Legislature subject to the limitations in the Constitu—

, tion. The equality and uniformity provisions of this section apply only to property
taxes and have no application to license or occupation taxes. The latter types of
taxation may be classified so long as the classification is not 'arbitrary or unrea-
sonable." Salt Lake City vs. Christensen Company, 34 U. 38, 95 P. 525 (1908).

- A two percent sales tax does not violate the uniformity and equality clause of

5 this section, because a sales tax is not a tax upon property. W. F‘. Jensen Candy Com-

0 E 6' pany vs. State Tax Commission, 61 P. (2d) 629 (1936).

j An inheritance tax statute, discriminating between relatives and making exemp—
tions, was held not to violate the uniformity clauses of the Constitution because an
inheritance tax is not a tax on property but a tax on the succession to property.
The right of a person to pass on his property at death is a privilege granted by stat—
ute and the Legislature may place conditions on this privilege. Dixon vs. Ricketts, 26

» U. 215, '72 P. 947 (1903).

_ "(1) The death duty or inheritance tax, by whatever name it is called, is not a
d 9‘ tax on property, but is an excise or impost on the right to transmit or the right or

, privilege to succeed to property. >1: * * (2) Neither the right to transmit nor the
right to receive is an inherent right, but is a privilege which depends on the con—
sent of the state. The state which confers the privilege may impose conditions.

0 Stated .in another way, the state's power over inheritance taxes is p1enary.'l State
M Tax Commission vs. Backman, 55 P. (2d) 171, 172 (1936).
if 9‘

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4 Utah
II. Financial Powers and Limitations—Continued
A o
A. Taxation and Assessments—Continued
(1) State—Continued
(c) The rate of taxation on tangible property shall ,
not exceed on each dollar of valuation, two and four—tenths mills for ‘
general State purposes, two—tenths of one mill for high school purposes, A ‘ c
which shall constitute the high school fund; *- * =3. Said rates shall
notbe increased unless a proposition to increase the same specifying the
rate or rates proposed and the time during which the same shall be levied, A .
be first submitted to a vote of such of the qualified electors of the
state, as in the year next preceding such election, shall have paid a
property tax assessed to them within the state, and the majority of those
voting thereon shall vote in favor thereof, in such manner as may be pro—
vided by law.8 A ’ .
(d) All metalliferous mines or mining claims, both
placer and rock in place, shall be assessed as the Legislature shall pro—
vide; provided, the basis and multiple now used in determining the value 1
of metalliferous mines for taxation purposes and the additional assessed 5
value of $5.00 per acre thereof shall not be changed before January 1, - ' o
1935, nor thereafter until otherwise provided by law. All other mines or
mining claims and other valuable mineral deposits, including lands con— 9\ C
taining coal or hydrocarbons and all machinery used in mining and all ‘
property or surface improvements upon or appurtenant to mines or mining
claims, and the value of any surface use made of mining claims, or mining
property for other than mining purposes, shall be assessed as other tan- K 1 .
gible property.9
(e) All corporations or persons in this State, or i
doing business herein, shall be subject to taxation for State, County, !
School, Municipal or other purposes, on the real and personal property =
owned or used by them within the Territorial limits of the authority - i a
levying the tax.” =
8Constitution, Art. XIII, Sec. 7, as amended (1930). .
In a proceeding to compel the county commissioners to levy and collect atax for I
an agricultural inspection fund provided for by statute, it was held that the levy H
was properly refused when it would have increased the rate of taxation on property ‘5
for State purposes beyond the limit permitted by this section. Bennion vs. Burgon, “ El O
65 U. 453, 238 P. 236 (1925). See page 11. par. (1). 1
9Constitution, Art. XIII, Sec. 4, as amended (1930). ‘
The words "than mining purposes, shall be assessed as other", in the last two
lines of this section, do not appear in any published Constitution of this State.
They are taken from the Laws of Utah (1950), Special Session, from the act proposing
the amendment.
10Constitution, Art. XIII, Sec. 10. ' c '
As a general rule the residence of the owner of tangible personal property is .
immaterial, and the property is taxable where it is found. The construction equip— *
ment of a foreign corporation, however, brought into the State and used in construc- ,
tion work for an indefinite period,was held taxable in the county where it was used. a C
Hamilton &. Gleason Company vs. Emery County, 285 P. 1006 (1930). a
" C

 A) 0
Utah 5
‘ II. Financial Powers and Limitations—Continued
A . . . ’
A. Taxatlon and Assessments—Continued
(1) State—Continued
(f) Nothing in this Constitution shall be construed
‘ to prevent the Legislature from providing a stamp tax, or a tax based on
- 1 . income, occupation, licenses or franchises.11
(g) * ‘3‘ * The State TaxCommission shall administer
and supervise the tax laws of the State. It shall assess mines and public
~ 0 . . .
utilities and adjust and equalize the valuation and assessment of prop—
erty among the several counties. It shall have such other powers of orig—
inal assessment as the Legislature may provide. Under such regulations
in such cases and within such limitations as the legislature may prescribe,
it shall establish systems of public accounting, review proposed bond
9 ' issues, revise the tax levies and budgets of local governmental units,
and equalize the assessment and valuation ofproperty within the counties.
The duties imposed upon the State Board of Equalization by the Constitu—
( tion and Laws of this State shall be performed by the State Tax Commis—
: $1011.12 * * *
“ , ° _ (2) Counties and Other Local Units
‘\ C . (a) The Legislature shall not impose taxes for the
.. purpose 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 corporation.” ’,
« o
1 (b) * * * In each county of this State there shall
‘ be a County Board of Equalization consisting of the Board of County Com-
i missioners of said county. The County Boards oquualization shall adjust
| and equalize the valuation and assessment of the real and personal prop-
1 erty within their respective counties, subject to such regulation and
“ ‘ ‘ control by the State Tax Commission as may be prescribed by law. The
1 11Constitution, Art. XIII, Sec. 12, as amended (1906). '
I 12Constitution, Art. XIII, Sec. 11, as amended (1930).
! 13Constitution, Art. XIII, Sec. 5.
.. ii a This section authorizes the Legislature to empower counties, cities, towns or
1 other municipal corporations to levy taxes for all purposes or the local governmental
unit involved. Kimball vs. City or Grantsville City, 19 U. 568, 57 P, 1 (1899).
Under this section the Legislature may not levy a tax for a local purpose. The
Legislature, however, may levy a license fee which is not for a revenue purpose but
is for the purpose or paying the expenses of the administration or a regulatory law.
30 a statute requiring the payment or a five dollar fee to municipalities for a per- 3
, mit to sell oleomargarine was valid. The Best Foods Incorporated vs. Christensen, '
a. " g 75 U. 592, 285 P. 1001 (1930).
g A statute which authorized counties to levy a tax for dependent mothers' pen-
sions was held valid since the object or this tax was a proper local purpose. Denver
‘ & R. G. R. Company Vs. Grand County, 51 U. 294, 1'70 P. 74 (1917).
a The limits or city taxation are fixed by statute. Plutus Mining Company vs.
,M Orme, ’76 U. 286, 289 P. 152 (1950).
- _. s

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6 Utah
,‘7\ 1 C
II. Financial Powers and Limitations—Continued
? 1 O
A. Taxation and Assessments—Continued
(2) Counties and Other Local Units-Continued
State Tax Commission and the County Boards of Equalization shall each
have such other powers as may be prescribed by the Legislature.14
(c) ‘1‘ ‘1‘ * The power to be conferredupon the cities ? , o
by this section shall include the following: _
1i To levy, assess and collect taxes and borrow
money, within the limits prescribed by general law, and to levy and col— 71 1 °
lect special assessments for benefits conferred.15 * 3‘ =3
(d) The Legislature shall not delegate to any special
commission, private corporation or association, any power to make, super—
‘ vise or interfere with any municipal improvement, money, property or
effects, whether held in trust or otherwise, to levy taxes, to select a E '
capitol site, or to perform any municipal functions.16 r
B. Exemptions
(l) * ‘1‘ * The property of the United States, of the , 1
State, counties, cities, towns, school districts, municipal corporations A ‘ °
and public libraries, lots with the buildings thereon used exclusively r? ‘ C
for either religious worShip or charitable purposes, and places of burial
not held or used for private or corporate benefit, shall be exempt from
taxation. Water rights, ditches, canals, reservoirs, power plants, pumping
plants, transmission lines, pipes and flumes owned and used by individuals A 1 .
or corporations for irrigating lands within the State owned by such indi— 1
viduals or corporations, or the individual members thereof, shall not be
separately taxed as long as they shall be owned and used exclusively for
such purposes. Power plants, power transmission lines and other property 1‘
used for generating and delivering electrical power, a portion of which a 1 .
is used for furnishing power for pumping water for irrigation purposes j '
on lands in the State of Utah,may be exempted from taxation to the extent 11
that such property is used for such purposes. These exemptions shall }
accrue to the benefit of the users of water so pumped under such regula— 1
tions as the Legislature may prescribe. The taxes of the indigent poor - ;
may be remitted or abated at such times and in such manner as may be pro- K 1= °
vided by law. ’3‘ =15 "F 1
14Constitution, Art. XIII, Sec. 11, as amended (1950). ,
15Constitution. Art. XI, Sec. 5, as amended (1932). _
This section is not self—executing. In order to exercise the functions enumer— ‘\ c
ated a city must adopt a charter, or in the absence or a charter a city may only ex— ‘
ercise those functions granted to it by legislative enactment. utah Rapid Transit
Company vs. Ogden City, 58 P. (2d) 1 (1936). \
16Constitution, Art. VI, Sec. 29. fl C
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Utah 7
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' = Q
' II. Financial Powers and Limitations—Continued
? l‘ .
ii. Exemptions—Continued
The Legislature may provide for the exemption from
taxation of‘ homes, homesteads, and personal property, not to exceed $2,000
? . o in value for homes and homesteads, and $800 for personal property. Prop—
erty not to exceed $3,000 in value, owned by disabled persons who served
.7. . in any war in the military service of the United States or of the State
0 . . .
of Utah and by the unmarried widows and minor orphans of such persons may
be exempted as the Legislature may provide.” ‘5 i3 ’3
(2.) ‘1‘ ‘3 it nor shall taxes be imposed by this State on
F lands or property herein, belonging to or which may hereafterbe purchased
' by the United States or reserved for its use; but nothing in this ordinance
shall preclude this State from taxing, as other lands are taxed, any lands
owned or held by any Indian who has severed his tribal relations, and has
obtained from the United States or from any person, by patent or other
‘ grant, a title thereto, save and except such lands as have been or may be
‘ i 0 granted to any Indian or Indians under any act of Congress, containing a .
é . A. provision exempting the lands thus granted from taxation, which last men-—
9 "tinned lands shall be exempt from taxation so long, and to such extent,
as is or may be provided in the act of Congress granting the same.18
. .1 . -—-—~-——-
i ”Constitution. Art. XIII, Sec. 2. as amended (1986).
' For exemptions in connection with intangible property and income taxos,see page .
;- a, par. (b). This section exempting property "used exclusively for either religious 3
( worship or Charitable purposes" means that "the building itself. or the portion there- 1
i. of for whicn exemption is claimed. as distinguished from the rent or income derived ,1
. therefrom. must be used exclusively for religious worship or charitable purposes.‘I ‘
a > . So where a building was owned by an Odd Fellows Lodge. and part of it was used for ‘1
E . ~ lodge halls. and part of it rented out. the rentals being used for charitable pur- ‘
‘ poses, the part rented out was not exempt from taxation. Odd Fellows' Building As- '
.1 soclation vs. Naylor, 53 U. 111. 177 P. 214 (1918). Following same rule laid down
‘1 in: Parker vs. Quinn, 23 U. 332. 64 P. 961 (1901). i
j Whether or not a hospital is "used exclusively for charitable purposes". and as '
i f suchis exempt. from taxation under this section.depends upon the facts of. each case. E
E Where a hospital was operated by a private corporation. which had the legal right ;
e i . to pay dividends, even though all the profits had been used to add to the hospital. 1’
; it was held not exempt. from taxation as being used for "charitable purposes.“ William -
. Budge Memorial Hospital Vs. Maughan. 79 U. 516. s F. (2d) 255 (19:51). Rehearing de- '
’ nied: 16 F. (2d) 1119.
1 The clause of this section first quoted exempting the property of various gov- i
‘ ernmental units applies only to property taxes. A tax on the sale of electrical .
, energy, which applied to municipal power plants as well as to private power plants. !
did not violate this section exempting from taxation the "property of Municipal Cor— 1
' o» ' , porations" because this was not a property tax. State Tax Commission vs. City or i
. Logan, 54 F. (2d) 1197 (1936). .
, Likewise a county must pay the regular tax on the gasoline in buys for its own
use. because this is an excise tax and not a tax on any "property of the county.”
fi Crockett vs. Salt Lake County, '72 U. L557. 270 P. 142 (1928).
9 18Constituuon, Art. III. Second (Part).
fi‘ ; ,
.

 T, ,7 A ,; ,__. .a . -TT m T .‘T’ 'T T"' T‘T “ T' :T'TT"? ‘ "T' 'T ' ’3‘,” 7 1 ,1
I f
8 Utah ‘ I
. ’7 , Q
I II. Financial Powers and Limitations—Continued
I . ‘ o
I C. Borrowing and Use of Credit
I
1 (1) Sfate
I (a) To meet casual deficits or failures in revenue,
I and fornecessary expenditures forpublic purposes, including the erection
I of public buildings, and for the payment of all Territorial indebtedness ._ 1 .
I assumed by the State, the State may contract debts, not exceeding in the
I aggregate at any one time, an amount equal to one and one—half per centum
I A
1 of the value of the taxable property of the State, as shown by the last 9
assessment for State purposes, previous to the incurring of such indebted—
1 ness. But the State shall never contract any indebtedness, except as in
the next Section provided, in excess ofsuch amount, and all monies arising
from loans herein authorized, shall be applied solely to the purposes for
which they were obtained.19 « o
(b) The State may contract debts to repel invasion,
suppress insurrection, or to defend the State in war, but the money arising
from the contracting of such debts shall be applied solely to the purpose
for which it was obtained.20 1
‘ ‘0
(c) The State shall not assume the debt, or any part \
' thereof, of any county, city, town or school district.21 /.\ C
(d) The Legislature shall not authorize the State, or
any county, city, town, township, district or other political subdivision
of the State to lend its credit or subscribe to stock or bonds in aid of fl I 0
any railroad, telegraph or other private individual or corporate enterprise I
or undertaking.22 1‘
I
(2) Counties and Other Local Units I
(a) No debt in excess of the taxes for the current year I 1
shall be created by any county or subdivision thereof, or by any school , I 9
19Constitution, Art. XIV, Sec. 1, as amended (1910).
'The phrase 'shall never contract any indebtedness', in our Judgment includes I
any obligation which the State undertakes or is obligated to pay or discharge out of II
future appropriations; that is, * * * to be paid from monies derived from levies I
other than those made by the then existing Legislature, and which must necessarily , I .
be raised by levying a tax upon the property of the entire State, as contradistin- I
guished from a mere city, county, or district levy." A statute, authorizing an in— 1
debtedness for the purpose of State University buildings, providing that it should
be a debt of the University and not of the State, was held to be an "indebtedness"
within the meaning of this section. State ex rel. University of Utah vs. Candland, '
36 U. 406, 104 P. 285 (1909).
ZOConstitution, Art. XIV, Sec. 2. .
21 - A . a
Constitution, Art. XIV, Sec. 6. I
22Constitution, Art. VI, Sec. 31.
A statute, authorizing county commissioners to provide funds for agricultural /,
extension work carried on by State colleges, does not violate this section, because ‘\ n
such activity is not a private enterprise but rather is for a public purpose. Bailey
vs. Van Dyke, 66 U. 184, 240 P. 454 (1925).
~ 0

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; \ Utah 9
v ‘ o
. II. Financial Powers and Limitations—Continued
‘ o ‘
C. Borrowing and Use of Credit—~Continued
(2) Counties and Other Local Units—Continued
district therein, or by any city, town or village, or any subdivision
thereof in this State; unless the proposition to create such debt, shall
“ l 0 have been submitted to a vote of such qualified electors as shall have
paid a property tax therein, in the year preceding such election, and a
majority of those voting thereon shall have voted in favor of incurring ‘
‘ ’ such debt.23 *
(b) When authorized to create indebtedness as provided 1
)
in Section 30f this Article, no county shall become indebted toan amount, (
including existing‘indebtedness exceeding two per centum. No city, town,
school district or other municipal corporation, shall become indebted to
S . an amount, including existing indebtedness, exceeding four per centum of '
the value of the taxable property therein, the value to be ascertained (
by the last assessment for State and County purposes, previous to the ‘
7 incurring of such indebtedness; except that in incorporated cities the
' assessment shall be taken from the last assessment for city purposes;
~ ‘0 provided, that no part of the indebtedness allowed in this section shall I
O “ f, be incurred for other than strictly county, city, town or school district E
\
Q 'purposes; provided further, that any city of the first and second class
when authorized as provided in Section three of this article, may be al— (
lowed to incur a larger indebtedness, not to exceed four per centum and i
A g . any city of the third class, or town, not to exceed eight per centum ad— .
i ditional, for supplying such city or town with water, artificial lights ;
. —-——— E
> 25 I
I Constitution, Art. XIV, Sec. 5.
‘ See par. (b), above. J
_ The Legislature has vested in it all legislative power, except such as is ex- ‘
l pressly or impliedly withheld by the State or Federal Constitutions. A statute,
c I ,0 authorizing the formation of Metropolitan Water Districts, composed of several munic-
ipalities, for the purpose of providing a water supply, having the power to tax the
, property within the district, and the power to borrow up to ten percent of the value
3 of the taxable property within the district, was held not to violate the debt limits
5 of this section and Section 4 of the Constitution (see par. (b), above). The court ,
'; said that this section and Section 4 (par. (1)), above) did not apply to such Metro— l
i politan Water Districts because: (1) They were not subdivisions of either a city,
) town, or county within the meaning of the word "subdivision" as used in this section;
~ 3 o (2) nor were they municipal corporations within the meaning of the phrase “other
‘ municipal corporations' as used in Section 4 of the Constitution. Nor was the stat- !
ute unconstitutional because itallowed cities and towns indirectly to incur indebt— i
edness in excess of the constitutional limit. Lehi City vs.Meiling, 48 P. (2d) 530 g
. (1935). ‘
The fact that such a Water District may be coextensive with one city or town, 3
instead of embracing several cities or towns, does not affect the validity of the ‘1
g statute. Provo City vs. Evans, 48 P. (2d) 555 (1935). i
A. : a The word "taxes'l as used in this section means all revenue including that which I
‘ is uncollected. The inhibition of this section goes only to the question of excess
amount and not to the time of payment. If the amount of the indebtedness is limited to
/7 the r