to extend the use of special assessments and special taxation to other municipal corporations than cities, towns, villages, park districts and drainage districts; to permit their use in other than permanent improvements; to allow special assessments and special taxation to be combined in the same improvement; or to authorize such methods to be used for improvements to be carried out jointly by two or more municipal corporations.

The requirement of uniformity of taxation within each taxing district has also caused difficulties; and in connection with the limitations on municipal debts has forced the multiplication of overlapping local districts, and prevented the development of a satisfactory system of local government.

The constitutional provisions relating to tax sales and redemptions appear to prevent legislation to eliminate professional tax buyers.

In addition to complaints and criticisms of the Illinois tax system by private individuals and associations, there have also been similar criticisms by public authorities. A considerable number of proposed. constitutional amendments have been introduced in the General Assembly. Most of the Governors of Illinois have called attention to defects in the methods of taxation and have strongly urged changes. A revenue commission appointed in 1885 reported a year later, calling attention to numerous defects, and recommending a new revenue law with important changes in methods of taxation and administration. The State Bureau of Labor Statistics made two extended reports on taxation, one in 1888 on mortgages, and a more comprehensive investigation in 1894 with recommendation for far-reaching statutory and constitutional changes.

A Special Tax Commission authorized in 1909 reported two years later, recommending a State Tax Commission and a system of county assessors, and also a constitutional amendment to authorize classification of personal property. The principle of classification was indorsed by a public policy vote in 1912, by 541,189 to 187,467.

The amendment proposed by the Special Tax Commission was submitted by the General Assembly in 1915 and voted on in 1916. It received 656,298 votes, to 295,782 against; but was held by the Supreme Court to have failed of adoption, as the affirmative vote was not a majority of the total vote cast at the election.

The uniform general property tax treats all property alike and proved satisfactory at the time it was first adopted in this country, because at that time there were no great variations in classes of property to be taxed. With the great development of intangible wealth, this tax system has ceased to work efficiently, and there has been a steady tendency in the states away from the requirement of uniformity in taxation. This tendency has been most decided since 1900, and has resulted in the adoption of numerous constitutional provisions, either permitting classification of property or authorizing special treatment of incomes, mortgages, etc. The experience of other states under more flexible constitutional provisions indicates that more revenue is derived from intangible wealth by other methods than under the uniform gen

eral property tax. As has been remarked by the United States Supreme Court, the constitutional rule of uniformity is now not a rule of equality but rather one of inequality.

Budget methods. Until recently little attention has been paid in this country to financing state governments, and the planning both of state appropriations and of the state revenue has been largely a hap-hazard matter. However, thirty-nine states (including Illinois) now have some provision for a budget, although but three have detailed provisions about this matter in their constitution. The Illinois statutory provisions for a budget, adopted in 1917, have been used successfully in 1919, and have been copied in several other states.

There are, however, a number of detailed provisions in the present constitution regarding appropriation methods, and some of these provisions now make difficulty. Detailed budgetary provisions in a state constitution are unnecessary, but care should be taken to make sure that existing constitutional provisions do not interfere with the adoption of a satisfactory state financial plan by the General Assembly.

State and Municipal Debts. Limitations upon state and municipal debts are found in practically all of the state constitutions. There has in recent years been a tendency to relax such limitations. This tendency has been a result of a desire to have governmental agencies undertake new projects, and state road building programs have been responsible for a number of constitutional changes.

The most striking development with respect to municipal debt limits has been the tendency, indicated particularly by provisions in Michigan, Ohio and New York to exempt income producing investments of cities from the strict limits imposed by the constitutions.

With respect to the Illinois debt limitations, two matters deserve special comment: (1) The Constitution of 1848 permitted a debt of $50,000 to meet casual deficits; the Constitution of 1870 raised this amount to $250,000. In view of present state expenditures, the question will present itself of still further increasing this amount. (2) The limitation upon municipal debt is one upon each separate municipal corporation, and has encouraged the practice of creating additional municipal corporations within a given area, in order to obtain in this way additional borrowing power.

II. HISTORICAL DEVELOPMENT IN ILLINOIS

Constitution of 1818. The first state constitution of Illinois had few provisions relating to taxation and finance. Article II on the legislative department contained the following:

"Section 20. No money shall be drawn from the treasury but in consequence of appropriations made by law."

"Section 21. An accurate statement of the receipts and expenditures of the public money shall be attached to and published with the laws, at the rising of each session of the General Assembly."

"Section 32. All bills for raising a revenue shall originate in the House of Representatives, subject, however, to amendment or rejection as in other cases."

More novel and of more importance was the following provision in the Bill of Rights, laying down the uniform rule of taxation:

"Section 20. That the mode of levying a tax shall be by valuation, so that every person shall pay a tax in proportion to the value of the property he or she has in his or her possession."

No previous state constitution had contained so sweeping and positive a statement of the rule of uniformity in taxation; though provisions for proportionate taxation had been adopted in the first consti tutions of Maryland (1776), Vermont (1777) and Massachusetts (1780).

In actual practice, however, the taxes then in use in Illinois, which continued for twenty years, were not based on a uniform system of valuation, but on a crude classification. There was a land tax, based on an arbitrary classification of lands, the proceeds of which were divided between the state and the counties, the state receiving the tax from lands owned by non-residents. There was also a state bank tax, and counties were authorized to levy taxes on a few specified items of tangible personal property. Early town charters provided for the taxation of town lots, exclusive of improvements; but later town taxes were imposed on real estate (including improvements), and still later on both real and personal property.

The tax law of 1839 established the general property tax in full force; providing for the assessment of real estate and for a long list of personal property items, including money actually loaned, stock of incorporated companies, and "all other description of personal property. The machinery of assessment was more fully developed by this law; and the different public authorities were authorized to levy taxes on the same assessed valuation.1

1R. M. Haig; History of the General Property Tax in Illinois.

Constitution of 1848. In the constitution of 1848 more attention was given to problems of finance, including appropriations, debt limitation and taxation. Article III, on the legislative department included the following provisions:

"Section 22. Bills making appropriations for the pay of the members and officers of the General Assembly, and for the salaries of the officers of the government, shall not contain any provision on any other subject."

Section 26 contained the provisions of Sections 20 and 21 of Article II in the former constitution, with the additional clause: "And no person who has been or may be a collector or holder of public moneys, shall be eligible to a seat in either House of the General Assembly, nor be eligible to any office of profit or trust in this state, until such person shall have accounted for, and paid into the treasury all sums for which he may be accountable."

Section 37 required the General Assembly to "provide for all appropriations necessary for the ordinary and contingent expenses of the government until the adjournment of the next regular session, which shall not be increased without a two-thirds vote, nor exceed the revenues authorized. To meet casual deficits, debts up to $50,000 were authorized; but no other debt should be contracted (except for repelling invasion, suppressing insurrection or defending the state in war) unless approved by the people at a general election, with a law for a tax for the payment of interest.

"Section 38. The credit of the state shall not, in any manner be given to or in aid of any individual, association or corporation."

The section requiring revenue bills to originate in the house of representatives was omitted.

In addition to these provisions, a new Article (IX) on Revenue was adopted dealing with the following subjects:

Section 1 authorized a poll tax. Section 2 repeated the rule of uniform taxation, with the addition of a clause relating to assessors and a clause authorizing taxes on an enumerated list of special objects.

Section 3 authorized the exemption from taxation of state and county property and property deemed necessary for school, religious and charitable purposes. Section 4 contained detailed provisions as to sales of property for unpaid taxes and for the redemption of property so sold. Section 5 authorized the corporate authorities of local districts to be vested with power to assess and collect taxes for corporate purposes, subject to the rule of uniformity. Section 6 provided that the specification of the objects and subjects of taxation shall not deprive the General Assembly of the power to require other objects or subjects to be taxed, in such manner as may be consistent with the principles of taxation fixed in this Constitution.

Under the township organization law of 1851, a system of town. assessors and collectors was established in counties adopting the township system. A new revenue law of 1853 amplified the rules relating to the assessment of property, providing for a schedule of fourteen items of personal property, including intangible property such as moneys, credits, investments in bonds, stocks and joint stock companies.

Proposed Constitution of 1862. In the proposed constitution of 1862, the article on Revenue was continued, containing all the provisions in Article IX of the Constitution of 1848, and three new sections as follows:

Section 6 provided that all taxes should be collected by the same person. Section 8 required the General Assembly to provide that all taxes and assessments should be due and paid on a certain day. Section 9 provided that the General Assembly should levy a uniform tax on bank circulation.

In the article on the legislative department the financial provisions in the corresponding article in the constitution of 1848, were continued with some additions. Municipalities, as well as the state, were prohibited from loaning their credit or subscribing to the stock of corporations or associations; and the general assembly was prohibited from modifying the terms of the Illinois Central Railroad charter.2

Constitution of 1870. In the Constitutional Convention of 1869-70, provisions relating to taxation and finance were reported by four different committees,-legislative department, revenue, state and local indebtedness and municipal corporations. The main discussion took place in connection with sections relating to revenue from the Illinois Central Railroad and prohibiting municipal corporations from loaning their credit or subscribing to stock (both of which were submitted separately and adopted), and one authorizing special taxation for local improvements.

In the revised constitution there were a number of changes, some by omission of former provisions, and more by addition. In Article IV on the Legislative Department, provisions relating to appropriations and state debt were brought together in sections 16-21 and 33. Section 16 contained the provisions of section 22 of Article IV of the former constitution, with a new provision that: "The General Assembly shall make no appropriation of money out of the treasury in any private law."

Section 17 made some changes from Section 26 of Article III of the former constitution. An Auditor's warrant is required for drawing money from the Treasury; and a statement of money expended at the session of the General Assembly is required in place of the former "statement of the receipts and expenditure of the public money.' last clause in Section 26 relating to the ineligibility of defaulting officers was included in Section 4 of Article IV.

Section 18 made some changes from Section 37 of Article III of the former constitution. Appropriations by each General Assembly are to cover the necessary expenses "until the expiration of the first fiscal quarter after the adjournment of the next regular session." The amount of state debt permitted to meet casual deficits was increased to $250,000.3

2 Proposed Constitution of 1862. Art. IV, Secs. 35, 38.

A provision requiring appropriations to be made by a general law was agreed to in Committee of the Whole, but was not reported to the Convention. Proceedings and Debates, I.