and agree on fixed uniform rates for valuing each description of property taxed, without regard to the lands or other property listed.117

In 1866 the valuations were declared by the auditor to be "manifestly below the actual worth of the property."118 In spite of the efforts of the state board of equalization, undervaluation persisted to the very end of the period. In 1870 the assesment of property did "not exceed . . . onequarter of its actual value."119

In addition to the undervaluation and inequality, the assessment was marked by a considerable degree of irregularity. The case of the refusal of the officers in various counties to assess property under the act of 1837 has already been noted.120 Less serious disturbances and delays are referred to in almost every volume of the session laws. 121 In 1846 the auditor complained that at least onehalf the assessors did not complete their assessment within the period required by law.122 Tardiness and irregularity in assessments involved irregularities in collection and difficulties in tax sales.123 In addition there seems to have been considerable dishonesty among collectors. In 1850, the auditor complained about "the large amount lost annually by defalcation of collectors."124

In spite of poor administration the tax system proved equal to the strain laid upon it in the debt-payment period. Even with the complications of the Civil War the system emerged with a good record as a revenue producer. But the highest praise which can fairly be given the general property tax in this, the most successful period of its existence, is to say that it was a system which fitted in a rough and ready fashion the rather crude economic conditions of the time.

117 Ibid. 1862, p. 5. 118 Ibid. 1866, p. 6.

119Ibid. 1870, p. 4.

120 Supra, p. 82.

121Cf., L. 1842-43, p. 14; L. 1849, 1 Sess., p. 121; L. 1853, p. 236 etc.

122 Aud. Rept. 1846, p. 38.

123 Cf., ibid., 1848, p. 15; ibid., 1850, p. 2; L. 1844-45, pp. 163, 183, 199;

L. 1846-47, p. 75 et seq.

124 Aud. Rept. 1850, p. 23; cf., L. 1842-43, pp. 68, 239.

D. THE PRESENT-DAY PERIOD, 1872-1913

CHAPTER VII

TAXABLE PROPERTY IN GENERAL AND ITS ASSESSMENT

In 1910 Illinois with 5,638,591 people was the third state in the union in population; in 1870 it had less than half that number (2,539,891). In the importance of its manufactures it was surpassed only by New York and Pennsylvania, but the rate of increase in Illinois has been greater than either of these states. Between 1902 and 1909 the state has pushed from sixth to second rank in mining.1 A few facts such as these are sufficient to show clearly that the problems of Illinois are no longer the problems of a thinly settled, agricultural community. Commerce and industry have developed and have earned for themselves places beside agriculture. Moreover, Chicago, with less than 300,000 inhabitants in 1870, has grown to be the second city in the United States and her growth has raised problems for Illinois which can scarcely be matched by those in any other state. Within one hundred years this whole development has come about. A century ago there were no cities, no mines, no commerce, no manufactures, and almost no population. During this entire time the principle of the general property tax has been in force. How slight were the modifications made in the system must have been impressed upon any one who has read the foregoing pages. The origin of the system and its adaptation to the needs of the trying period of debt payment have been described. It remains to show to what extent the present code, arrived at after a slow, evolutionary process, and established in almost exactly its present form, over forty years ago, has met the needs of this new industrial state. 1Thirteenth Census, Abstract, p. 543.

The revenue law in force in the state was formulated in 1872. It rests upon the foundation laid by the revenue section of the constitution of 1870. The law has been modified in a number of particulars during the last forty years, especially in 1898, when the assessment arrangements were given an overhauling, but it has never been supplanted by a new general law. When it was introduced in 1872 it was not, in many particulars, a new law; it was for the most part merely a codification of statutes already existing. Certainly such a codification was needed, for it appears from the repealing clause that the new measure replaced nearly fifty old acts of the legislature.3

The movement for a new revenue law in 1872 seems to have found its source in the state board of equalization, which as a fountain of reform suggestions has long since gone dry. In taking up its duties in 1867 the board found the existing code to be inadequate and ineffective. In 1868 resolutions were passed recommending a revision of the law. Three years later the revenue measure, drawn up by the chairman and secretary of the board, was laid before the General Assembly. While under consideration it was actively supported by the board and upon its adoption, the board did not hesitate to assume credit and responsibility for the new law.5

CONSTITUTIONAL PROVISIONS.

Although the new law was passed soon after the adoption of the constitution of 1870 it can not be said to have been made necessary by the constitution; for the revenue article in the new constitution did not differ greatly from that of the constitution of 1848.

The necessary state revenue was to be obtained, as under the old constitution, by a tax which should fall upon the owners of property in proportion to the value of

2L. 1898, p. 36.

3L. 1871-72, p. 69.

Proceedings of the State Board of Equalization, 1868, p. 81.

Ibid., 1867, pp. 37-39, 58, 59; 1870, Oct. 7 to Oct. 27; 1872, p. 61.

the property owned. No provision, it was true, was made for a capitation tax. The list of "pedlars, auctioneers, etc.," who could be taxed in such manner as the assembly should direct, was augmented by the addition of liquor dealers, insurance, telegraph and express interests or business, vendors of patents, and corporations owning or using franchises or privileges; but a specification was added that such taxes should be levied by general law and be made uniform as to the class affected. The exemption clause was made more specific; property "used exclusively for agricultural and horticultural societies, for school, religious, cemetery and charitable purposes," might be relieved of tax charges. Some modifications were made in the provisions regulating tax sales and redemption, making them more general. The General Assembly was forbidden to release any local body from its share of the state tax. All taxes levied for state purposes were to be paid into the state treasury. A tax limit of seventy-five cents on the hundred dollars valuation was imposed upon counties, exception being made in case the tax was levied to pay debts previously contracted. A higher rate might be levied, however, upon vote of the people. A debt limit of five per cent of the assessed valuation was placed upon all local bodies; and such bodies, when incurring a debt in the future, were required to make provision for the accumulation of a repayment fund through direct taxation. Local improvements might be paid for "by special assessments or by special taxation of contiguous property or otherwise."

PROPERTY TAXED AND EXEMPTED.

The general statement of property subject to taxation in Illinois since 1872 reads as follows: first, all real and personal property in this state; second, all moneys, cred

By an act passed in 1872, the legislature sought to bring about the condition of uniformity prescribed here. L. 1871-72, p. 753.

This does not comprehend the amendment of 1890 for World's Fair bonds. L. 1890, p. 8.

its, bonds or stocks and other investments, the shares of stock of incorporated companies and associations, and all other personal property, including property in transitu to or from this state; third, the shares of capital stocks of banks and banking companies doing business in this state; and fourth, the capital stock of companies and associations incorporated under the laws of this state.8

This statement of taxable property has stood undisturbed during the entire forty years, except for one amendment in 1905 which exempted the capital stock of certain corporations but which was promptly declared unconstitutional.9

Of the property included in the foregoing statement the following classes have been designated by the General Assembly as exempt from taxation:10

first, school lands donated by the United States, not sold or leased and all property used exclusively for school purposes;11 second; all property used exclusively for religious purposes, or used exclusively for school and religious purposes, and not leased or otherwise used with a view to profit;12 third, all lands used exclusively as grave yards or grounds for

8L. 1871-72, p. I.

9Infra, p. 201; L. 1905, p. 353; Consolidated Coal Co. v. Miller, 236 Illinois 149 (1908).

10 The constitutional provision under which these exemptions have been made reads as follows:

"The property of the state, counties, and other municipal corporations, both real and personal, and such other property as may be used exclusively for agricultural and horticultural societies, for school, religious, cemetery, and charitable purposes, may be exempted from taxation; but such exemption shall be only by general law. In the assessment of real estate encumbered by public easement, any depreciation occasioned by such easement may be deducted in the valuation of such property." Par. 3, Art. VIII, Constitution of 1870.

The language of the law of 1909 exempts all property belonging to schools, whether it is exclusively devoted to school purposes or not, provided that it is not used with a view to profit. The supreme court has declared this broad exemption unconstitutional. The People v. Deutsche Gemeinde, 249 Ill. 132 (1911).

11L. 1913, p. 511. In 1909 the wording was changed from that of the act of 1872. L. 1909, p. 309.

12The law of 1872 was slightly narrower than this. L. 1871-72, p. 1; L. 1909, p. 307. In 1905 residences used by persons devoting their entire