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NEBRASKA BLUE BOOK, 1926

307

TAXATION IN NEBRASKA ¹

The constitution of 1875 provided for raising revenues by taxation as follows:

Art. IX, Sec. 1. "The legislature shall provide such revenue as may be needful, by levying a tax by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her or its property and franchises, the value to be ascertained as the legislature shall direct, and it shall have power to tax peddlers, auctioneers, brokers, hawkers, commission merchants, showmen, jugglers, inn-keepers, liquor-dealers, toll-bridges, ferries, insurance, telegraph and express interests or business, venders of patents, in such manner as it shall direct by general law, uniform as to the class upon which it operates."

Art. IX, Sec. 2. "The property of the state, counties and municipal corporations, both real and personal, shall be exempt from taxation, and such other property as may be used exclusively for agricultural and horticultural societies, for schools, religious, cemetery and charitable purposes, may be exempted from taxation, but such exemptions 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. The legislature may provide that the increased value of land, by reason of live fences, fruit and forest trees grown and cultivated thereon shall not be taken into account in the assessment thereof."

All revenue legislation from 1875 to 1921 was based on these two sections of the constitution. Few innovations of principle were possible because of constitutional limitations. The chief departures have been the inheritance tax of 1901, the taxation of railway terminals since 1907, and the occupation tax on all corporations since 1909.

The inelasticity of the constitution was -remedied somewhat by amendments adopted, September 21, 1920. These amendments are as follows:

Article VIII, Section 1. "The necessary revenue of the state and its governmental subdivisions shall be raised by taxation in such manner as the legislature may direct; but taxes shall be levied by valuation uniformly and proportionately upon all tangible property and franchises, and taxes uniform as to class may be levied by valuation upon all other property. Taxes other than property taxes may be authorized by law. Existing revenue laws shall continue in effect until changed by the legislature."

Article IV, Sec. 28. "A tax commissioner shall he appointed by the governor with the advice and consent of the senate. He shall have jurisdiction over the administration of the revenue laws of the state, and together with the governor, secretary of state, state auditor and state treasurer shall have power to review and equalize assessments

1 An extensive history of taxation in Nebraska was published in the Blue Book of 1915.

308

NEBRASKA BLUE BOOK, 1926

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of property for taxation within the state. He shall have such other powers and perform such other duties as the legislature may provide. His term of office and compensation shall be as provided by law."

The legislature of 1921 enacted a new revenue law, one of the principal features of which was the classification of intangible property for taxation. Actual value of real property was established as the basis of levy of taxes, rather than one-fifth of the actual value as was formerly the law. The law governing taxation of railroads, insurance companies and franchises was also rewritten.

The new law for the classification of intangibles met with much criticism and it was proposed to repeal it in 1925. After much discussion, the legislature amended the law, substituting for the taxing of intangibles at 25% of their real value, a division of intangibles into two classes-money and its equivalents in one class with a tax of two and one half mills, and other intangibles with a tax of five mills.

The legislature of 1925 also enacted a gasoline tax law which collects two cents for every gallon of gasoline sold in the state, with certain refunds for gasoline used in agriculture provided for. At the same time, the auto license fees were reduced. The collections from these two taxes are applied to the extension, improvement and maintenance of roads throughout the state, with the result that. a fine system of roads is being built up as rapidly as the making of contracts and seasonal conditions will permit.

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NEBRASKA BLUE BOOK, 1926

309

TOTAL ASSESSMENT, ASSESSMENT OF REAL ESTATE, PERSONAL PROPERTY,
RAILROAD. AND INTANGIBLE PROPERTY. 1867-1926

Year	Total Assessment	Real Estate Exclusive of Railroads & Purchasers' Interest in State Lands	Real Estate Percent of Total Assessment	Personal Property Exclusive of Railroads	Personal Property Percent of Total Assessment	Railroad Property	Railroads Percent of Total Assessment	Total Intangibles	Intangible, Per Cent of Total Assessment	Intangible, Per Cent of Personal Property
1867	$20,069,222	$12,101,211	60.32	$6,889,9611	34.31	$1,078,050	5.37	$1,064,63 8	5.30	15.49
1868	32,632,550	16:876,781	61.72	15,755,769	48.28	.....	.....	1,315,217	4.03	8.35
1869	42,123,596	25.629,138	60.84	9,053,658	21.79	7,440,800	17.67	1,696715	4.03	18 .74
1870	53,709,829	36,000,461	67.02	11,276,890	21.00	6,432,478	11.98	1:711:380	3.18	15.18
1871	55,513,658	.....	.....	.....	.....	.....	.....	.....	.....	.....
1872	69,873,819	48,456,117	69.35	11,910,607	17.05	9,507,096	13.60	1,838,447	2.63	15.44
1873	78,239,693	55,556,660	71.01	10,618,741	13.57	12,064,392¹	16.42	2,452,812	3.14	28.08
1874	80,754,044	52,946,609	65.57.	16,624,321	20.58	11,183,114	13.85	2,707,525	3. 35	16.29
1975	76,467,399	50,363,052	66.74	15,335,823	20.32	9,768,524	12.94	2,321,099	3.08	15.14
1876	74,178,645	50,023,706	67.44	15,140,233	20-41	9,014,706	12.15	2,163,518	2.92	14 29
1877	71,811,579	46,833,647	65.67	16,130,096	22.62	8,347,836	11.71	2,199,341	3.08	13.64
1878	74,389,536	47,875,908	64.36	17,943,241	24.12	8,670,387	11.52	1,979,156	2.6 6	11.03
1879	75,359,799	47,391,781	62-89	18,813,541	24.96	9,154:477	12.15	2,022,320	2.6 8	10.76
1880	90,499,618	53,850,447	59.57	26,705,978	29.58	9,943,193	11.00	2,553,300	2.82	9.56
1881	93,142,457	54:279,362	68.28	26,118,531	28.04	12,744,564	13-68	2,351,323	2.52	9.00
1882	98,537,475	55,638,619	56.46	28,022,006	28.44	14,876,850	15.10	2,530,508	2.67	9.02
1883	110,543,645	61,700,259	55.81	32,542,401	29.44	16,300,985	14.75	2,657,809	2.40	8.17
1884	123,615,887	69,715,109	56.40	36,122,887	29.22	17,777,891	14.38	3,523,396	2.85	9.75
1885	133,418,700	77,139,596	57.82	37,744,315	28.29	18,534,789	13.89	3,114,732	2.33	8.36
1886	143,932,571	84,534,653	68.74	39,730,620	27.58	19,567,298	13-58	3,988,745	2.77	10.04
1897	160,506,266	96,358,889	60.03	40,546,015	25.26	28,601,362	14.71	4,032,794	2.51	9.95
1888	176,012,820	107,031,866	60.80	40,406,465	22.96	28,574,489	16.24	3,562,659	2.02	8.82
1889	182,763,538	112,681,415	61.63	40,457,226	22.13	29,674,897	16.24	3:937:592	2.15	9:74
1890	184,770,305	115,360,973	62.44	39,445,124	21.35	29,964,208²	16.21	4,190,463	2.27	10.63
1891	183,138,236	117,133,909	63.96	36,580,869	19.98	29,423,458 ²	16.06	4,228,321	2.31	11.56
1892	186,432,377	119:873,279	64.30	37,124,864	19.91	29,434,234 ²	15.79	3,696,784	1.98	9.96
1893	194,733,125	129,073,006	65-76	37,991,296	19.51	28,668,823 ²	14.75	3,542,912	1.82	9.83
1894	183,717,499	127,060,781	69.15	28,642,349	15.60	28,014,369 ²	15.25	3,155,653	1.72	11.00
1895	171,468,207	119,998,083	69.48	25,977,611	15.15	25,492,513 ²	14.87	2,814,155	1.64	10:83
1896	167,078,270	116,294,386	69.60	25,307,015	15.15	25,476,869 ²	15.25	2,435,583	1.46	9.62
1897	165,193,736	112,969,873	68.40	26,605,662	16.10	25,619,101 ²	15.50	2,272,418	1.38	8:54
1898	167,810,765	111,568,720	66.49	30,066,808	17.91	26,175,237 ²	15.60	2,059,130	1.28	6.85
1899	169,105,905	110,642,440	65.42	32,867,015	19.14	26,106,450	15.44	2,398,207	1.42	7.41
1900	171,747,593	111,192.560	64.74	34,208,297	19.92	26,346,736	15.34	2,299,397	1.84	6.72
1901	174,439,095	114,164,145	65.45	33,741,436	19.94	26,633,514	15.21	2,306,113	1.32	6.88
1902	180,091,492	116,368,704	64.61	36,952,813	20.52	26,774,975 ²	14.87	2,601,046	1.44	7.04
1903	188,458,379	120,208,842	63.18	40,964,591	21.74	27,284.946 ²	14.48	3,785,366	2.01	9.24

310

NEBRASKA BLUE BOOK, 1926

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TOTAL ASSESSMENT, ASSESSMENT OF REAL ESTATE, PERSONAL PROPERTY,
RAILROADS, AND INTANGIBLE PROPERTY, 1867-1925--Concluded

Year	Total Assessment	Real Estate Exclusive of Railroads & Purchasers' Interest in State Lands	Real Estate Percent of Total Assessment	Personal Property Exclusive of Railroads	Personal Property Percent of Total Assessment	Railroad Property	Railroads Percent of Total Assessment	Total Intangibles	Intangible, Per Cent of Total Assessment	Intangible, Per Cent of Personal Property
1904	294,779,245	171,915,121	61.7%	66,784,271	22.65	46,082,853	15.63	12,361,415	4.19	18.50
1905	304,470,962	187,751,163	61.67	69,424,823	22.80	47,294,976	15.53	12,307,677	4.04	17.72
1906	313,060,301	190,084,306	60.71	75,269,964	24.05	47,706,031	16.24	13,580,605	4 .34	18.00
1907	329,413,349	192,939,917	58.51	88,442,635	25.81	53,036,797	16.08	15,361,496	4 .66	18.41
1908	391,7S5,464	255,484,621	65.22	82,852,870	21.15	53:397,973	13.63	16,486,671	4 .21	19.90
1909	398,985,819	258,773,928	64.86	85,665,526	21.47	54,546,865	13.67	17,227,945	4 .32	20.11
1910	412,138,607	261,936,078	63.56	95,388,183	23.14	64,814,351	13.30	18,764,331	4 55	19.67
1911	415,670075	266,919,439	64.22	93,943,721	22.60	54,806,915	13.18	19,681,242	4. 73	20.95
1912	463,371,889	319,049,627	68.85	89,271,975	19.27	55,050,287	11.88	17,513,592	3.78	19.62
1913	470,690,414	322,632,187	68.54	92,228,898	19.60	55,829,329	11.86	15,776,291	3 .35	17.10
1914	471:940,195	325,974,928	69.07	90,013,970	19.07	56,945,074	11.86	14,007,631	8 .36	10.41
1915	481,931,238	328,699,753	68.36	196,169,372	20.00	55,945,067	11.64	13,977,462	3.44	10.81
1916	500,827,274	346,038,700	69.09	198,001,082	19.67	56,833,234	11.34	13,071,416	3.81	11.85
1917	528,891,424	352,057,:625	66.53	119,978,346	22.68	56,855,453	10.79	16,418,836	8.10	9.34
1918	567,947,914	355,769,828	62.62	155,360,720	27.35	56,827,256	10.03	23,304,797	4.10	10.48
1919	568,921,570	369,520,812	63.05	153,921,281	26.99	56,831,076	9.96	22,434,673	3.93	14.67
1920	762,284,909	557,631,797	71.67	160,059,599	20.56	60,851,333	7.82	20,267,538	2.60	20.56
1921	3,305,416,872	2,347,528,049	70.99	636,079,542	19.23	307,695,100	9.30	84,23 5,452	2.54	.....
1922	3,191,747,870	2,329,631,079	72.97	531,245,186	16 65	315,999,364	9.91	141:266,092	4.42	.....
1923	3,198,632,992	2,346,710,409	73.20	513,321,133	16.04	315,644,618	9.93	34,998 ,239	..... ³	.....
1924	3,184,855,428	2,341,821,618	73.53	502,617,854	15.81	314,467,200	9.87	32,070 ,654	..... ³	.....
1925	13,176,773,795	2,356,913,165	74.03	797,808,650	25.10	313,420,816	9.86	151,6 42,492	4.77	19.00

     1 This total contains valuation of railroad and telegraph.
      2 This total contains valuation of railroad and Pullman cars. Prior to 1889 no provision was made for the separate assessment of sleeping car and dining car property.
      3 Intangible assessed at 14 of actual value.