in sixty years was the exemption of state and local bonds of Ohio in 1905. Various other attempts to amend this provision have been made, all failing because of the constitutional requirement that an amendment to be adopted must receive a majority of the total vote cast at the election. In 1908 an amendment to permit classification was submitted pursuant to the recommendation of a special tax commission, and received 339,000 affirmative votes, against 95,000 negative, but failed of a majority.

Largely as a result of dissatisfaction with the tax provisions of the constitution and the repeated failure of attempts to secure relief by the ordinary methods of amendment, a constitutional convention was called. It submitted, among others, two amendments relating to taxation, and these were voted on and approved by the people September 3.

One amendment changed the article (12) relating to taxation. The "uniform rule" clause (given above) was continued without alteration or modification. The exemption (1905) of public bonds was limited to those now outstanding, so that future issues will be taxable. The section which forbids the general assembly to levy a poll tax was amended to prohibit any poll tax, or the requirement of any service that may be commuted in money.

The following tax sections were added:

"7. Laws may be passed providing for the taxation of the right to receive, or to succeed to, estates, and such taxation may be uniform or it may be so graduated as to tax at a higher rate the right to receive, or to succeed to, estates of larger value than to estates of smaller value. Such tax may also be levied at different rates upon collateral and direct inheritances, and a portion of each estate not exceeding twenty thousand dollars may be exempt from such taxation.

"8. Laws may be passed providing for the taxation of incomes, and such taxation may be either uniform or graduated, and may be applied to such incomes as may be designated by law; but a part of each annual income not exceeding three thousand dollars may be exempt from such taxation.

"9. Not less than fifty per centum of the income and inheritance taxes that may be collected by the state shall be returned to the city, village or township in which said income and inheritance tax originate.

"10. Laws may be passed providing for excise and franchise taxes and for the imposition of taxes upon the production of coal, oil, gas and other minerals."

It will be seen that the income, franchise and production taxes authorized must be, if levied, in addition to the advalorem property

tax upon the property from which the income is derived or in respect of which the franchise tax is paid. The prior (and continued) provision forced the taxation of property and also the taxation of the evidences of ownership of property. The amendments will permit the taxation of incomes from both, and with the addition of taxes on franchises and production, sextuple taxation will easily be possible. The provision that at least half the inheritance tax must go to the local tax district will have a very disturbing effect on local revenues if the rates enacted are at all large.

The other tax provision is in the amendment establishing the initiative and referendum. It reads as follows:

"The powers defined herein as the "initiative" and "referendum" shall not be used to pass a law authorizing any classification of property for the purpose of levying different rates of taxation thereon or of authorizing the levy of any single tax on land or land values or land. sites at a higher rate or by a different rule than is or may be applied to improvements thereon or to personal property."

As the existing tax provisions of the constitution prohibit any such laws as are specified in this clause, and the only pending amendment of these tax provisions continues the prohibition, this further prohibition seems superfluous. It indicates, however, the attitude of the convention towards any proposal to depart from the rigid uniformity of the general property tax.

Under the general heading of conservation of natural resources an article is added to the constitution providing in part that "Laws may be passed to encourage forestry, and to that end areas devoted exclusively to forestry may be exempted, in whole or in part, from taxation."

AMENDMENTS PENDING1

Kentucky. The legislature has submitted to the people, to be voted on at the November election 1913, an amendment repealing the present requirement of the uniform taxation of all property (which is in effect similar to the Ohio provision of 1851) and substituting the following:

"Taxes shall be levied and collected for public purposes only and shall be uniform upon all property of the same class subject to taxation within the territorial limits of the authority levying the tax; and all

Except in Kentucky, all pending amendments are to be voted on at the November election this year.

taxes shall be levied and collected by general laws. The general assembly shall have power to divide property into classes and to determine what class or classes of property shall be subject to local taxation. Bonds of the state and of counties, municipalities, taxing and school districts, shall not be subject to taxation."

Laws passed pursuant to this clause are to be subject to referendum. Utah. Several amendments were submitted to be voted on November, 1912. The principal changes repeal the present "uniform rule” which is similar to Ohio, and substitute language in effect like the Kentucky proposal given above.

Massachusetts. An amendment is now before the people, providing

that:

"Full power and authority are hereby given and granted to the general court (Legislature) to prescribe for wild or forest lands such methods of taxation as will develop and conserve the forest resources of the commonwealth."

The constitution does not now permit classification of property for taxation at different rates.

California. A home rule amendment has been submitted by initiative petition, empowering any county, city, town, district, or township, by vote of its qualified electors, to raise and collect revenue for its local purposes in such manner as it may determine; providing that such taxes or exemption therefrom shall be uniform upon any class of property.

Missouri. An amendment has been submitted by initiative petition designed to establish substantially the single tax plan of raising revenue by the year 1920, through gradual exemptions of everything but land and public service corporation franchises. Liquor and other licenses in the interest of public health, peace and safety may continue to be imposed, and the amendment provides that it does not limit the power of the state to tax any form of privilege, franchise or inheritance.

Another amendment is to establish a tax commission of three members in place of the present board of equalization.

New Hampshire. The constitution now provides that the legislature may "impose and levy proportional and reasonable assessments, rates and taxes." This prevents classification, although the legislature may exempt any property entirely, and, as in Pennsylvania, no property is held taxable unless specifically mentioned in the law. A constitutional convention held in June, submitted several amend

ments designed to permit classification, and to permit gross earnings taxes on public service corporations in lieu of advalorem property taxes; also to permit graduated (progressive) inheritance taxes.

Louisiana. Following the report of a special tax commission, the legislature in August submitted a long series of amendments, with the general purpose of separating state and local revenues, and taking all public service corporation "operating" property for state taxation.

Oregon. Presents an interesting and somewhat complicated situation. There are eight state wide and three county tax measures pending, to be voted on in November. But despite contradictory and antagonistic provisions, the Oregon measures in contrast to Ohio, are all aimed against the uniform rule and the general property tax.

In brief, there are two amendments proposed by the legislature of 1911 to abolish the "uniform rule," and one to repeal the county option amendment approved in 1910. There are four measures prepared by a legislative commission this year, and submitted by initiative petition, as follows:

1. A constitutional amendment permitting the taxation of incomes; 2, a law exempting household goods and personal effects actually in use; 3, a law exempting credits (bonds, mortgages and shares, except bank stock or banking capital); 4, an inheritance tax law eliminating double taxation of non-residents, and increasing the present rates.

Another pending amendment was first styled "graduated single tax and exemption," but this title was changed to the more appropriate one of "graduated specific tax and exemption amendment."

This amendment proposes a graduated tax upon land values or waterpower values, or franchise values of any kind, or rights of way of public service corporations, amounting to more than $10,000 in one ownership in any one county. The tax ranges from $2.50 per $1,000 on the first ten thousand dollars above the exemption, up to $30. per thousand (3 per cent.) on values over $100,000. Payment of this specific tax does not relieve the property from the ordinary tax rate. The amendment provides also that personal property and improvements shall be exempt unless the people of any county vote to tax them by enacting a special county tax law.

In three counties, measures have been submitted under the provisions of the 1910 amendment, to abolish the taxation of personal property and improvements.

6 (1912)

From this summary of amendments pénding in various states, it is apparent that, except in Ohio, there is much dissatisfaction with the rigid uniformity of the general property tax.

The results of the elections will be scanned with keen interest by all who are striving, in one way or another, for progress towards better tax systems.

ARTHUR C. PLEYDELL,

Secretary New York Tax Reform Association.

Vocational Education: Legislation of 1910-1911. One of the great gains in recent legislation for practical training has been a more intelligent and clear-cut use of such terms as vocational, industrial, agricultural and household arts education. The want of a clear understanding of the meaning of these and similar words brought about a confusion which has reflected itself in both current discussion and lawmaking.

The most commonly accepted usage of these terms today, is that which is set forth in recent Massachusetts legislation. In 1911, when that Commonwealth recodified and amended its laws relating to vocational education, it defined vocational education as meaning any education the controlling purpose of which is to fit for profitable employment; industrial education as that form of vocational education which fits for the trades, crafts and manufacturing pursuits, including the occupations of girls and women carried on in workshops; agricultural education as that form of vocational education. which fits for the occupations connected with the tillage of the soil, the care of domestic animals, forestry and other wage-earning or productive work on the farm; household arts education as that form of vocational education which fits for occupations connected with the household.

There is a marked tendency in dealing with the subject of practical education in this country to precede legislation, particularly if it be of any extensive character, by preliminary commissions for the study of the problem. These commissions are sometimes known as Commissions on Vocational Education, sometimes as Commissions on Industrial Education, the former title being in recent years more frequently employed. These commissions investigate throughout

In the next issue of the REVIEW the laws upon this subject passed during the current year (1912) will be treated.

2 Sec. 1, Chap. 471, Acts 1911.