Taxation

( Originally Published 1883 )

Taxation.—To make laws, to execute and enforce them, and to administer justice, necessitate the expenditure of money. Also the erection of public buildings, for State, county, and city purposes, the construction of roads and bridges, the support of schools, and the maintenance of works of public utility, require a considerable outlay of money annually. The money needed for these purposes is raised by taxation, Each person owning property is obliged to contribute a certain amount each year to defray the annual expenses of the State, and of the county, township, city, or village in which he resides.

Duty of the Citizen.—If the government protects the citizen in the enjoyment of his property, and secures to him the rights of citizenship, he is certainly under obligation to maintain and support it. If he is not obliged to spend his time in defending himself and in protecting his property, it is but reasonable to expect him to contribute to the support of the government, which expends both time and money in protecting his life and property.

Property Subject to Taxation.—All real estate and personal property are subject to taxation. By real estate is meant lands, buildings, and fixtures; by personal property is meant goods, furniture, money at interest, stocks, bank shares, vessels, etc. Real estate refers to anything that is fixed or permanent ; personal property includes what is movable.

1. Money at interest due a person, more than he pays interest for, is subject to taxation. Debts due a person, more than his indebtedness, are taxable.

2. The property of corporations is taxed like that of private individuals. Partners may be taxed jointly.

3. Although a person may have mortgaged hi; property, he is nevertheless required to pay taxes as though he was in full possession of his estate.

Property Exempt from Taxation.—Certain property is not subject to taxation. This includes,

1. All property belonging to the United States, the State, county, township, village, or city.

2. The property of all library, benevolent, charitable, and scientific institutions.

3. All property of religious societies ; as, churches, parsonages, burial grounds.

4. The property of persons, who, by reason of infirmity, age, or poverty, are, in the opinion of the Supervisor, unable to pay taxes.

5. A certain portion of the property of each individual.

1. National bonds are not taxed.

2. Houshold furniture and utensils not exceeding in value two hundred dollars ; all wearing apparel ; one hundred and fifty dollars worth of library or school books; all family pictures; musical instruments, not exceeding in value one hundred and fifty dollars, and other personal property owned and used by any housholder in connection with his house or business, of the value of two hundred dollars, are exempted from taxation.

Statement of Taxable Property.—Each person is required to make a statement to the Supervisor of all real and personal property in his possession that is subject to taxation. It is the duty of the Supervisor to furnish all persons within his township or ward with a blank form, containing a list of all property subject to taxation, to be filled out and returned to him.

Although the law requires the Supervisor to furnish each person with a blank form, to be filled out with a correct description of his property and returned to him, this is not usually done. The Supervisor usually goes through his township or ward, and makes a list of property owners, together with the value of their property.

Assessment of Property.—When the Supervisor has received these statements, he estimates the value of the property of each person, for the purpose of taxation. This valuation of property by the Supervisor is called an assessment. An assessment roll is a list of persons subject to taxation, together with the estimated value of the property of each.

The law requires that property shall be estimated at its cash value.

Review of Assessment Roll.—On certain days specified by law, the Supervisor is required to be present at his office for the purpose of reviewing his assessment roll. If any person is dissatisfied with the estimated valuation of his property, and can show sufficient reason why it is too high, it is the duty of the Supervisor to alter the assessment.

The days appointed for this purpose are the third Monday in May and the two following days.

Equalization of Taxes.—The Board of Supervisors, at their annual meeting, examine the assessment roll of each township, and ascertain whether there has been an equal and uniform valuation of the real estate of the several townships. If it is evident that the property in some townships is assessed too high, and in others it is too low, the Board add to or deduct from the valuation, until in their judgment the assessment in each township, village, and ward is relatively equal.

The annual meeting occurs on the second Monday in October of each year.

Apportionment of Taxes.—After examining and equalizing the assessment rolls, the Board then apportion the taxes among the several townships in the county. By apportioning the taxes is meant the assigning to each township its just proportion of the money to be raised by taxation. Every township not only pays a township tax, but it also contributes its share of the State and county tax. It is therefore necessary for the Board,—

1. To ascertain the township tax;

2. To determine the county tax ;

3. To ascertain the State tax.

Township Tax.—The Township Clerk furnishes the Supervisor with a statement of the amount to be raised for township purposes. This statement is given by the Supervisor to the County Clerk, who is the clerk of the Board of Supervisors, and it is by him laid before the Board.

The Ward and Village Supervisors obtain statements from the City and Village Clerks.

County Tax.—The Board of Supervisors determine how much money is to be raised in the county for county purposes, and they apportion this amount among the several townships.

State Tax.—The Legislature determines the amount of the State tax, and the Auditor General apportions it among the counties in proportion to the valuation of taxable property in each county, and he notifies each County Clerk what proportion of the tax is to be raised in his county. The Clerk notifies the Board of Supervisors of the amount, and they apportion it among the townships.

Certificates of Apportionment.—The clerk of the Board makes out two certificates of the amount assessed upon the property of each township, for State, county, township, and other purposes, and delivers one to the County Treasurer, and the other to the Supervisor of the proper township, village, or ward.

Assessment by the Supervisor.—The Supervisor then assesses the taxes specified in the certificate, delivered to him by the County Clerk, upon the property of each individual as made out in his assessment roll. Every person is taxed in proportion to the amount of property in his possession. The Board of Supervisors apportion the taxes among the townships ; each Supervisor apportions them among the fax payers of his township.

Collection of Taxes.—After assessing the taxes, the Supervisor delivers to the Township Treasurer or the Collector a copy of his assessment roll, which contains the valuation of each person's property, and the amount of State, county, and other taxes, which he is required to pay. The Township Treasurer or City Collector collects the taxes, and pays over to the County Treasurer the State and county tax.

The Township Treasurer is required to give to the County Treasurer a bond in double the amount of the State and county tax that he is to collect.

Time of Collection.—The time fixed for the collection of taxes is the month of December of each year. If a person refuses or neglects to pay his taxes, as much of his property is sold as is necessary to pay them. If taxes are not paid before the first of January, four per cent. is added for collection dues.

TAXES.

STATE State Legislature

COUNTY Board of Supervisors

TOWNSHIP Township Meeting

VILLAGE Board of Trustees

CITY Common Council

1. State tax apportioned by the Auditor General among the counties ; by the Boards of Supervisors among the townships, villages, and wards ; by the Supervisors among the tax payers.

2. County tax apportioned by the Board of Supervisors among the townships, villages, and wards ; by the Supervisors among the tax payers.

3. The Supervisors assess the State, county, township, village, and city taxes upon the property of tax payers.