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RECOI^D 



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Number 7 



JULY, 1934 



Volume 12 



■J 



Imperative Need of 



evenue 



evision 



Report of John C. Watson, Director of Taxation, to I. A. A. Board of 



r |r '•/-;•■: ^•::.. ;':.' •...•"■■• .■;^-: . Directors, Jun.e 15, 1934 •:=\'-;v- ' -.V- ■ '-.A ■::::--■. -^- .•■.■■:.■■•: 



JOHN C. WATSOK 



IN most of the States the general 

 property tax has long been and 

 is still the chief or only support 

 of most State, county and local gov- 

 ernments. In theory it applies to all 

 property. In practice it has always 

 been largely confined to tangible 

 property, chiefly real estate. In 

 pioneer times, when nearly every 



household owned 

 its own home and 

 operated its own 

 business p r o p - 

 erty, chiefly farm 

 property, the 

 property tax was 

 almost universal- 

 ly applicable and 

 was reasonably 

 fair. This is still 

 partly true in 

 states of little 

 urban and indus- 

 trial development. It is not true 

 in a great urban and industrial 

 state like Illinois, where continued 

 reliance on the general property tax 

 has largely or wholly exempted from 

 direct property taxes, more than one- 

 half of the entire population who de- 

 rive their income from personal 

 service, ownership of intangible prop- 

 erty, or speculative transactions. 



Active in 1921 



Even in happier times, the fatal 

 weakness and injustice of the prop- 

 erty tax were plainly evident. The 

 Illinois Agricultural Association early 

 recognized the necessity of revising 

 the antiquated revenue article of the 

 State Constitution. Its representa- 

 tives were active in the Constitutional 

 Convention in 1921 and 1922; in the 

 sessions of the General Assembly 

 which submitted revenue amendments 



to the voters in the November elec- 

 tions in 1926, and 1930, and again in 

 the regular session in 1933, when the 

 General Assembly was unable to 

 agree upon a revenue amendment to 

 be voted on next November. 



As the depression deepened, the 

 weakness and injustice of the prop- 

 erty tax became tragic. Inability to 

 pay taxes has increased delinquency 

 to proportions never before known in 

 the State. Tax sales without a bid- 

 der have been followed by forfeiture 

 of property, thus vainly heaping 

 penalties upon taxes which even with- 

 out the penalties have been crushing. 



• Conference Approves -v , ,■ 



Those still able to pay taxes look 

 with foreboding to the future, asking 

 themselves how long they can deny 

 necessities to their families or disre- 

 gard the need of their property for 

 paint and repairs. With growing con- 

 cern about their ability to pay such 

 fixed charges as interest and taxes, 

 they see the increasing threat of crop 

 losses from drouth and insect pests, 

 now nearing the proportions of a 

 major disaster the effects of which 

 will reach into nearly every city and 

 village in the State. They know that 

 the indispensable services of govern- 

 ment are suffering impairment, not 

 because the people as a whole are un- 

 able to support them but because the 

 burden is inequitably distributed. 



Adjournment of the General As- 

 sembly, July 1, 1933, without sub- 

 mitting a revenue amendment to be 

 voted on this year was followed by 

 widespread recognition of the neces- 

 sity of a special session for this pur- 

 pose. This was discussed at a state- 

 wide conference of approximately 

 1700 farm leaders in Decatur, Sep- 



Revising our antiquated tax- 

 ing system is one of the great- 

 est problems facing Illinois 

 farmers who bulk large as tax- 

 payers. The L A. A. has per- 

 sisted in its efforts to bring 

 about a solution to this problem 

 for more than ten years. Read 

 carefully the accompanying re- 

 view and report of the efforts 

 of your organization to secure 

 an equitable amendment to the 

 revenue article of the state con- 

 stitution. — Editor. 



tember 18, 1933. The conference un- 

 animously adopted a resolution urg- 

 ing officers and directors of the As- 

 sociation to take such action as they 

 might deem advisable to secure the 

 calling of such a special session. It 

 also asked that the proposed revenue 

 amendment embody provisions to per-* 

 mit the base of taxation to be broad- 

 ened, and to cut taxation of tangible 

 property, both rural and urban, at 

 least 50 per cent. /.'•". 



The action requested at the Decatur 

 conference was submitted to rural 

 people in every county in the form of 

 tax relief petitions requesting the of- 

 ficers of the Association to urge upon 

 the Governor the imperative need of 

 calling a special session for the ex- 

 clusive purpose of submitting proper 

 amendments to the revenue article to 

 be voted on in November, 1934. The 

 tax relief petition also requested the 

 General Assembly to submit an 

 amendment removing present limita- 

 tions which prevent an equitable dis- 

 tribution of the tax burden; cutting 

 total general prop ty taxes to not 

 over 11.00 on the $100 of fair cash 

 value, except by referendum; forbid- 

 ding further indebtedness by any 

 taxing district except by referendum 

 vote; and empowering the General 

 Assembly, by general law enacted by 

 a two-thirds vote, to distribute state 

 revenue among local taxing districts. 



Ratified at Danville 



, These provisions incorporated in a 

 proposed amendment were ratified in 



Published monthly by the lUinols Arrlcultural ABsociation at 165 So. Main street, Spencer. Ind. Editorial Offices, 608 So. Dearborn St., CbicafO, 111. 



Entered as second class matter at post office, Spencer. Ind. Acceptance for mailing at special rates of postage provided in Section 412, Act of Feb. 2S, 

 ,1925. authorised Oct. 27, 1925. Address all communications for publication to Editorial Offices, Ulinois Agricultural Association Becord, tOt 

 •Dearborn St., Chicago. .•■:....,.•.■. •. ■•:•-■'.:...•..■•■.•• \.-..- r^; ^.••- ■•:-■ ^ • •- .-.. ; r ..,••:>■.••. • •.- •■•v •;•- y •• s^..- ,v . : =-v, - .--v^^ ^n:;.>^-;V r--..-=- 





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