xt76125qbr60 https://exploreuk.uky.edu/dips/xt76125qbr60/data/mets.xml Utah United States Works Progress Administration 1937 Other contributors include: Robert C. Lowe (Robert Chapin) and  David S. Lander under the supervision of A. Ross Eckler; 15 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; Call number Y 3. W 89/2:36/Ut 1 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 Utah text Analysis of Constitutional Provisions Affecting Public Welfare in the State of Utah 1937 2015 true xt76125qbr60 section xt76125qbr60 y
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“ • W O R K S P R O G R E S S A D M I N I S T R A T I O N
` HARRY L. HOPKINS, ADMINISTRATOR
CORRINGTON GILL, ASSISTANT ADMINISTRATOR
HOwARD B. MYERS, DIRECTOR
I, DIVISION OF SOCIAL RESEARCH
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I ANALYSIS OF CONSTITUTIONAL PROVISIONS
AFFECTING PUBLIC WELFARE IN THE STATE OF
V UTAH
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PREPARED BY ,
ROBERT C. LOWE AND DAVID S. LANDER Q
LEGAL RESEARCH SECTION I
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UNDER THE SUPERVISION OF I
A. Ross ECKLER, COORDINATOR OF SPECIAL INQUIRIES • '
DIVISION OF SOCIAL RESEARCH '
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PREFACE
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This bulletin is one of a series presenting
• A State constitutional provisions affecting public wel-
fare, prepared to supplement the StatekqrState digests
of public welfare laws so as to provide in abstract
form the basis for the public welfare services of the
several States.
· 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
be impossible to consider within the limits of this
study every remotely connected constitutional provi-
° sion. The indirectly related provisions included,
U therefore, have been restricted to those concerning
` . finance, legislation, and the methods of constitutional
T amendment.
An attempthasbeen made,bya.careful selec-
° tion of the most recent cases decided by the highest
courts oftheStates, toindicate wherever possible how
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
useful to those interested hipublic welfare questions
in indicating how State and local public welfare admin-
istration may be affectedtqrconstitutional 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
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Taxation and Assessments ......... . .......................... 2
Exemptions ............................................ Q ...... G
Borrowing and Use of Credit ................................. 8
Other Income ................................................ 10
p • Appropriations and Expenditures ............................. 11
_ · Provisions Affecting Legislation ................................. 11
Constitutional Amendment or Revision ............................. 14
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Utah
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ANALYSIS OF CONSTITUTIONAL PROVISIONS AFFECTING
PUBLIC WELFARE IN UTAH1
• I. Incidence of Responsibility for Welfare Program
• A. Reformatory and Penal Institutions, and those for the bene-
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
• . ,
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 * * *
_ C. Until otherwise provided by law, the Governor, State Treas-
urer and State Auditor shall constitute a Board of Insane Asylum Commis-
. O . . . .
sioners. Said Board shall have such supervision of all matters connected
· 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
•
1Const1tut1on (1896), as published by Milton H. welllng, Secretary of State (1933);
wlth all amendments to April 1, 1937.
•'The provisions of this Constitution are mandatory and prohlbltory, unless by
express words they are declared to be otherw1se.* Constitution, Art. I, Sec. 26.
••It is a trulsm recognized by all the authorities that the Legislature of a state
1s vested with the whole of the legislative power of the state and may deal 1n any
subject w1th1n the scope of constitutional government except as such power 1s 11m1ted
• or directed by express provisions ofthe Constitution or necessary lmpllcation ar1s1ng
` therefrom. *State Constitutions are limitations, and not grants, of powers.•• Lehi
C1ty vs. Me1l1ng, 48 P. (2d) 530, 535 (1935).
Restrlctions upon the use of property and the right to contract are valid 1f lm-
posed 1n the interest of the whole people, such restrictions being a proper exerc1se
of the police power by the Legislature. 'Many attempts have been made to define police
power. There 1s good reason to say that the multitude of such attempts with the many
variations in phrasing the matter have not added very much to the simple expression,
. that 1t1s the power to make all laws whlch 1n contemplation of the Constitution pro-
mote the public welfare. This both defines the power and states the limitations on
its exercise, ¤•= ¤•= =•=.•' State vs. Packer Corporation, 297 P. 1013, 1016 (1931).
2Const1tut1on, Art. XIX, Sec. 2.
3Const1tut1on, Art. X, Sec. 10.
. 4Const1tut1on, Art. VII, Sec. 14.
The government and control of the Utah State Hospital for the Insane 1s vested
O in a board, conslsting of the Governor, the State Treasurer and the State Auditor.
Revised Statutes (1933), title 85, ch. 7, par. 2.
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2 Utah
I. Incidence of Responsibility for Welfare Program—Continued •
of Reform School Commissioners. Said Board shall have such supervision •
of all matters connected with the State Reform School as may be provided
by law.5
II. Financial Powers and Limitations
•
A. Taxation and Assessments
(1) State •
(a) All tangible property in the State, not exempt
under the laws of the United States, or under this Constitution, shall
be taxed in proportion to its value, to be ascertained as provided by
law * * *. A
The Legislature shall provide bylaw for an annual 0
tax sufficient, with other sources of revenue, to defray the estimated
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
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 •
the law creating the debt.6
(b) The Legislature shall provide by law a uniform .
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, •
so that every person and corporation shall pay a tax in proportion to the
value of his, her, or its tangible property,provided that the legislature
may determine the manner and extent of taxing transient live stock and
live stock being fed for slaughter to be used for human consumption.
5 •
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 f1ve resident c1t1zens of the State. Revised Statutes
(1933). title 85, ch. 6, Dar. 2. The five citizen members of the Board of Trustees
are appointed by the Governor by and with the consent of the Senate. Revised Statutes
(1933). title 85, ch. 1, par. 1.
6Const1tut1on, Art. XIII, Sec. 2, as amended (1930). •
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 Irrlgatlon District, 40 U. B3. 119 P. 1039 (1911). A levy lmposed solely on an ‘
acreage basis and not according to value, on all lands w1th1n a drainage dlstrlct,
was held to be a *spec1al 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 corporatlon are taxable under this section. Utah Metal •
& Tunnel Company vs. Groesbeck, 62 U. 251, 219 P. 248 (1923).
The assessment of all the coal lands In a county,at a flat rate per acre, was
held to violate the uniformity requirement of this section, because the court took
Judicial notlce of the fact that all the coal lands were not of equal value per acre.
R1r1e vs. Randolph, 51 U. 274, 169 P. 941 (1917). ·
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Utah 3
II. Financial Powers and Limitations-—Continued
, •
A. Taxation and Assessments-—Continued
(1) state-continued
Intangible property may be exempted from taxation as property or it may
be taxed in such manner·andto such extent as thelegislature may provide.
• Provided that ifintangible property be taxed as property the rate thereof
shall not exceed five mills on each dollar of valuation. When exempted
from taxation as property, the taxable income therefrom shall be taxed
° under any tax based on incomes, but when taxed by" the State of Utah as
property, the income therefrom shall not also be taxed. The Legislature
may provide for deduction, exemptions, and or offsets on any tax based
upon income. The personal income tax rates shall be graduated but the
maximum rate shall not exceed six per cent of net income. No excise tax
, rate based upon income shall exceed fourper cent of net income. The rate
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 changedtqrlaw by a vote ofthe majority of the members elect-
l ed to each house of the Legislature. All revenue received from taxes on
A ” • income orfrom taxes on intangible property shall be allocatedausfollowst
75 per cent thereof to the State District School Fund and 25 per cent
· thereof to the State General Fund and the State levies for such purposes
shall be reduced annually in proportion to the revenues so allocated;
provided that any surplus above the revenue required for the State Dis-
trict School Fund as provided in Section 7 of this Article shall be paid
° into the State General Fund.7
 
7Const1tut1on, Art. XIII, Sec. 3, as amended (1930).
The requirement ofunlformlty and equality does not apply tospeclal assessments.
Lundberg vs. Green Rlver Irrlgatlon Dlstrlct, 40 U. 83, 119 P. 1039 (1911).
• State Constitutions are mere l1m1tat1ons and not grants of power, and the power
of taxation is vested ln the Legislature subject to the limitations ln the Constitu-
tion. The equality and uniformity provisions of this section apply only to property
taxes and have no application to llcense or occupation taxes. The latter types of
taxatlon may be classlfled so long as the classification 1s not 'arbltrary or unrea-
sonable.” Salt Lake C1ty vs. Christensen Company, 34 U. 38, 95 P. 523 (1908).
A two percent sales tax does not vlolate the uniformity and equallty clause of
this section, because a sales taxis not a tax upon property. W. F. Jensen Candy Com-
• pany vs. State Tax Commission, 61 P. (2d) 629 (1936).
An inheritance tax statute, discriminating between relatives and making exemp-
tions, was held not to violate the un1form1ty clauses of the Constitution because an
lnherltance tax 1s not a tax on property but a tax on the succession to property.
The rlghtof a person to pass on his property atdeath is a privilege granted by stat-
ute and theLeg1slature mayplace condltlons on this privilege. Dixon vs. Ricketts, 26
U. 215, 72 P. 947 (1903).
'(1) The death duty or Inheritance tax, by whatever name 1t is called, is not a
• tax on property, but ls an excise or lmpost on the rlght to transmit or the right or
privilege to succeed to property. * * * (2) Neither the right totransmlt nor the
right toreceive is an Inherent right, but 1s a prlvllege which depends on the con-
sent of the state. The state which confers the privilege may impose conditions.
Stated 1n another way, the state's power over Inheritance EAXGS 1s plenary.' State
Tax Commission vs. Backman, 55 P. (2d) 171, 172 (1936).
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4 Utah
II. Financial Powers and Limitations—Continued
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A. Taxation and Assessments—Cont1nued
(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, •
which shall constitute the high school fund; * ’7‘ °¤. Said rates shall
not be increased unless a proposition to increase the same specifying the
rate or rates proposed and the time during which the same shall be levied, °
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 ,
(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
of metalliferous mines for taxation purposes and the additional assessed
value of $5.00 per acre thereof shall not be changed before January 1, •
1935, nor thereafter until otherwise provided by law. All other mines or
mining claims and other valuable mineral deposits, including lands con- ·
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- °
gible property.9
(e) All corporations or persons in this State, or
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 •
levying the tax.1O
8C0nst1tut1on, Art. XIII, Sec. 7, as amended (1930).
In a proceeding to compel the county commissioners to levy and collect atax for
an agricultural lnspectlon fund provided for by statute, lt was held that the levy
was properly refused when lt would have Increased the rate of taxation on property
for State purposes beyond the llmlt permitted by this section. Bennion vs. Burgon. •
65 U. 433. 238 P. 236 (1925). See page 11. par. (1).
9Const1tutlon, Art. XIII, Sec. 4, as amended (1930). ‘ 4
The words ¤than mlnlng purposes, shall be assessed as other", ln 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 (1930). Special Session, from the act proposing
the amendment.
1OConstltut1on, Art. XIII, Sec. 10. •
As a general rule the residence of the owner of tangible personal property 1s
lmmaterlal, and the property is taxable where lt ls found. The construction equip-
ment of a foreign corporation, however, brought lnto the State and used ln construc-
tion work for an indefinite per1od,was held taxable ln the county wherelt was used. ·
Hamilton & Gleason Company vs. Emery County, 285 P. 1006 (1930).
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Utah 5
II. Financial Powers and Limitations-Continued
• . · .
A. Taxation and Assessments——Cont1nued
(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
, income, occupation, licenses or franchises.11
(g) * * * The State'TaxCommission shalladminister
• and supervise thetax laws of the State. It shall assess mines and public
utilities and adjust and equalize the valuation and assessment of prop-
erty among;theseveral 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
• issues, revise the tax levies and budgets of local governmental units,
and equalize theassessment 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-
sion.12 * * *
' ’ V (2) Counties and Other Local Units
· (a) The Legislature shall not impose taxes for the
purpose ofany county, city, town orother municipal corporation, but may,
by law,vestin the corporate authorities thereof, respectively,thepower
r to assess and collect taxes for all purposes of such corporation.13
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( (b) * * * In each county ofthis State there shall
» be a County Board of Equalization consisting of the Board of County Com-
L missioners of said county. The County Boards ofEqualization shall adjust
l and equalize the valuation and assessment of the real and personal prop-
erty within their· respective counties, subject to such regulation and
i • control by the State Tax Commission as may be prescribed lnr law. The
[  -
V 11Const1tut1on, Art. XIII, Sec. 12, as amended (1906).
I 12Const1tut1on, Art. XIII, Sec. 11, as amended (1930).
13Const1tut10n, Art. XIII, Sec. 5.
• This section authorizes the Legislature to empower counties, cities, towns or
other municipal corporations tolevy taxes forall purposes of 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 tee which is not for a revenue purpose but
1s for the purpose otpaying the expenses ot the administration ot a regulatory law.
So a statute requiring the payment or a tive dollarfee to mun1c1pal1t1es for a per-
mit to sell oleomargarine was valid. The Best Foods Incorporated vs. Christensen,
, 75 U. 392, 285 P. 1001 (1930).
A statute which authorized counties to levy a tax for dependent mothers' pen-
I sions was held valid s1nce the object otthis tax was a proper local purpose. Denver
& R. G. R. Company vs. Grand County, 51 U. 294, 170 P. 74 (1917).
The limits or c1ty taxation are fixed by statute. Plutus Mining Company vs.
Orme, 76 U. 286, 289 P. 132 (1930).
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6 Utah
II. Financial Powers and Limitations——Continued ·
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) * ’?’ * The powertobe conferredupon the cities •
by this section shall include the following:
To levy, assess and collect taxes and borrow
money, within the limits prescribed by general law, and to levy and col- •
lect special assessments for benefits conferred.15 * °*‘ ‘?‘
(d) The Legislature shallnot 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 .
capitol site, or to perform any municipal functions.16
H. Exemptions ·
(l) * * * The property of the United States, of the
State, counties, cities, towns, school districts, municipal corporations • I
and public libraries, lots with the buildings thereon used exclusively .
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, transmissionlines, pipes and flumes owned and used by individuals • 3
or corporations forirrigating lands within the State owned by such indi- t
viduals or corporations, or the individual members thereof, shall not be Y
separately taxed as long as they shall be owned and used exclusively for !
such purposes. Power plants, power transmission lines and other property l
used for generating and delivering electrical power, a portion of which • p
is used for furnishing power for pumping water for irrigation purposes  
on lands in the State of Utah,may be exempted from taxation to the extent I
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— {
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- •
vided by law. * * *
14Const1tut1on. Art. XIII, Sec. 11, as amended (1930).
15C0nst1tut1on. Art. XI. Sec. 5, as amended (1932).
This section is not sel I-executing. In order to exercise the functions enumer- °
ated a c1ty must adopt a charter,or in the absence of a charter a city may only ex-
ercise those functions granted to lt by legislative enactment. Utah Rapid Transit
Company vs. Ogden City, 58 P. (Sl) l (1936).
16Constltut1on, Art. vi, sec. 29. ·
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Utah 7
[I. Financial Powers and Limitations——Contlnued
•
B. Exemptions-—Contlnued
The Legislature may provide for the exemption from
taxatlon of homes, homesteads, and personal property,not to exceed $2,000
• IU value For homes and homesteads, and S300 For personal property. Prop-
erty not to exceed $d,0OO in value, owned by disabled persons who served
• ln any war in the military service of the United States or of the State
of Utah andby the unmarried widows and mlnor orphans of such persons may
be exempted as the Legislature may pr0v1de.17 T * *
(2) * * * nor shall taxes be imposed by this State on
» lands or property herein, belonging to or which may hereafterbe purchased
•
bythe United States or reserved Forlts use; but nothing in this ordinance
_ shall preclude thls State from taxlng, as other lands are taxed, any lands
  owned or held by any lndlan who has severed hls tribal relations, and has
obtalned 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
‘ • granted to any Indlan or lndlans under any act of Congress, containing a
 T provlslon exempting the lands thus granted from taxation, which last men-
· tloned 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.1°
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17Cohst1tut1on, Art. XIII, Sec. 2, as amended (1956).
_ For exemptions ln connection with lntanglble propertyand Income tax•s,see page
2. par. (b). This section exempting property *used exclusively for B1Ch8P rellglous
worshlpor charitable purposeslmaans that ”the bulldlngltself, or the portion there-
of for which exemption is clalmed, as distinguished from the rent or lncome derived
therefrom, must be used excluslvely for rellglous worship or charitable purp0ses.*
So where a bulldlng was owned by an Odd Fellows Lodge, and part of lt was used for
° 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' Bulldlng As-
soclatlon vs. Naylor, 53 U. 111, 177 P. 214 (1918). Following same rule lald down
ln: Farmer vs. Quinn, 25 U. 332, 64 P. 961 (1901).
whether or not a hospltal ls lused exclusively for charitable purposes*,and as
suchis exempt from taxation under this sect1on.depends upon the facts of each case.
where a hospital was operated by a prlvate corporatlon. which had the legal right
• to pay dlvldends, even though all the profits had been used to add to the hospital,
lt was held not exempt from taxation as being used for ¤char1teble purposes.¤ wllllam
Budge hemorlal Hospltal vs. Haughan, 79 U. 516, 5 P. (2d) 258 (1931). Rehearlng de-
nled: 15 P. (2d) 1119.
The clause of this sectlon flrst quoted exempting the property of various gov-
ernmental units applles only to property taxes. A tax on the sale of electrical
enerzy. whlch applied to municipal power plants as well as to prlvate power plants,
dld not vlolatc this section exemptlng from taxation the *property of Municipal Cor-
· porat1ons" because thls was not a property tax. State Tax Commlsslon vs. City ot
Logan. 54 P. (2d) 1197 (1956).
Llkewlse a county must pay the regular tax on the gasoline lt buys for its own
use, because this is an excise tax and not a tax on any ”property of the county.•
Crockett vs. Salt Lake County, 72 U. 537, 270 P. 142 (1928).
· 18Const1tutlon, Art. III, Second (Part).
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5, Utah ‘
Il. Financial Powers and Limitations-—Continued i
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C. Borrowing and Use of Credit
(1) Sfate
I
(a) To meet casual deficits or failures in revenue,
and fornecessary expenditures forpublic purposes, including the erection
of public buildings, and for the payment of all Territorial indebtedness •
assumed by the State, the State may contract debts, not exceeding in the
aggregate at any one time, an amount equalto one and one—half per centum
of the value of the taxable property of the State, as shown by the last •
assessment forState purposes, previous tothe incurring of such indebted-
ness. But the State shall never contract any indebtedness, except as in
the next Section provided, inexcess ofsuch amount, andall monies arising
from loans herein authorized, shall be applied solely tothe purposes for
_ which they were obtained.19 •
(b) The State 1nay contract debts to repel invasion, p
suppress insurrection, orto defend the Statei11war,but the money arising
from the contracting ofsuch debts shall be applied solely to the purpose .
for which it was obtained.2O
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(c) The State shall not assume the debt, or any part
thereof, of any county, city, town or school district.21 · °
(d) The Legislature shall notauthorize the State, or
any county, city, town, township, district orother political subdivision
of the State to lend its credit or subscribe to stock or bonds in aid of •
any railroad,telegraphor otherprivateindividualorcorporate enterprise
or undertaking.22
(2) Counties and Other Local Units
(a) No debt inexcess of‘thetaxes forthe current year
shall be created by any county or subdivision thereof, or by any school •
19Const1tut10n, Art. XIV, Sec. 1, as amended (1910).
'The phrase 'shall never contract any indebtedness', 1n our judgment includes
any obligation which the State undertakes or1s obllgated to pay or dlscharge out of
future appropriations; that 1s, * * * to be paid from monies derived fromlevles
other than those made by the then existing Legislature, and which must necessarily •
be ralsed by Ievylng a tax upon the property of the entire State, as contrad1st1n—
gulshed from a mere city, county, or district levy.” A statute, authorizing an 1n-
debtedness for the purpose of State Un1vers1ty bulldlngs, provldlng that It should
be a debt of the Unlverslty and not of the State, was held to be an ”1ndebtedness”
within the meaning of this section. State ex rel. University of Utah vs. Candland,
36 U. 406. 104 P. 285 (1909).
2OConst1tut10n, Art. XIV, Sec. 2.
O
“1Const1tut1on, Art. XIV, Sec. 6. ·
9
2“Const1tut10n, Art. VI, Sec. 31.
A statute, authorlzlng county comm1ss1oners to provide funds for agrlcultural
extension work carried on by State colleges, does not violate this section, because
such actlvlty 1s not a private enterprise but rather lsfor a public purpose. Bailey
vs. Van Dyke. 66 U. 184, 240 P. 454 (1925).
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_ Utah 9
II. Financial Powers and Limitations-—Continued
•
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
• 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.25
(b) When authorized tocreate indebtedness asynbvided
in Section¢3of this Article, nocounty shall become indebted toan amount,
including existing‘indebtedness exceeding two per centum. Nocity, town,
school district or other municipal corporation, shall become indebted to
• 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
incurring of such indebtedness; except that in incorporated cities the
assessment shall be taken from the last assessment for city purposes;
° • provided, that no part of the indebtedness allowed in this section shall
be incurred for other than strictly county, city, town or school district
· 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
. any city of the third class, or town, not to exceed eight per centum ad-
ditional, for supplying such city or town with water, artificial lights
Constitution, Art. XIV, Sec. 3.
.; See par. (b), above.
. The Legislature has vested 1n lt all legislative power, except such as ls ex-
‘ pressly or lmplledly withheld by the State or Federal Constltutlons. A statute,
_ • authorizing theformatlon of Metropolitan water Dlstrlcts, composed ofseveral munic-
` lpallties, 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 ofthe value
of the taxable property wlthln the district, washeld not to violate the debt limits
of this section and Section 4 of the Constltutlon (see par. (b), above). The court
, said that this section and Section 4 (par. (b), above) did not apply to such Metro-
· politan water Districts because: (1) They were not subdivisions of elther a city,
y town, or county within the meaning ofthe word 'subd1v1s1on” as used inthls section;
1 • (2) nor were they municipal corporations within the meaning of the phrase 'other
' munlclpal corporat1ons' as used in Section 4 of the Constitution. Norwas the stat-
ute unconstitutional because ltallowed cltles and towns indirectly to lncur indebt-
edness 1n excess of the constitutional limit. Leh1 C1ty vs.Me1l1ng, 48 P. (2d) 550
(1955).
The fact that such a water District may be coextenslve with one city or town.
instead of embracing several cities or towns, does not affect the validity of the
statute. Provo City vs. Evans, 48 P. (2d) 555 (1955).
a The word ”taxes” as used ln this section means allrevenue including that which
1s uncollected. The inhibition of this section goes only to the question of excess
amount and not tothe time ofpayment. Ifthe amount ofthe lndebtedness is limited to
the revenue of the current year, the Constitution does not prohibit the payment of
debt lncurred 1n one year out of the next year's taxes. Scott vs. Salt Lake County,
58 U. 25, 196 P. 1022 (1921).
•

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•
10 Utah
II. Financial Powers and Limitations——Continued
•
C. Borrowing and Use of Credit——Continued
/ .
(2) Counties and Other Local Units——Continued
or sewers, when the works for supplying such water, light and sewers,
shall be owned and controlled by the municipality.24 •
D. Other Income
•
(1) The proceeds of all lands that have been or may be
granted by the United States to this State, forthe support of the common
schools; theproceeds of all property that may accrue to the State by es-
cheat or forfeiture; allunclaimed shares and dividends ofany corporation
\ incorporated under the laws of this State; the proceeds of the sale of
timber, mineral or other property from school and State lands, otherthan °
those granted for specific purposes; and five per centum of the net pro-
ceeds of the sale of public lands lying within the State. which shall be _
sold by the United States subsequent to the admission of this State into
the Union, shall be and remain a perpetual fund, to be called the State
school fund, the interest of which only, shall