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     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, renders 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 incumbered (sic) 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 be 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

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

state treasurer shall have power to review and equalize assessments or 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 attempts were made to repeal it in all succeeding legislative sessions. After much discussion, the legislature amended the law in 1925, substituting for the taxing of intangibles at 25 per cent 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 1929 raised the tax on Class B intangibles to eight mills.
     In 1927, the method of taxing "shares of stock in banks, and all moneyed capital that comes into competition with the business of banks or banking in Nebraska" was revised. It was provided that such intangible property is to be assessed at seventy per cent of the mill rate at which tangible property in the same district is assessed. The distribution of tax moneys arising from Classes A and B was apportioned, "one sixth to the state general fund, one sixth to the county general fund, one third to the general fund of the city or village, and one third to the general fund of the school district in which the property is assessed."
     The legislature of 1925 also enacted a gasoline tax law which collected two cents for every gallon of gasoline sold in the state, with certain refunds for gasoline used in agriculture provided for. In 1929 the gasoline tax was raised to four cents a gallon. 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.
     The system of state and local revenues and expenditures is set forth in detail in a "Nebraska Taxpayers' Handbook" published by the Nebraska Legislative Reference Bureau, Station A, Lincoln.

¹ This total contains valuation of railroad and telegraph.
² This total contains valuation of railroad and Pullman care. Prior to 1889 no provision was made for the separate assessment of sleeping car and dining car property.
³ Purchasers' interest in state lands included.
⁴ Intangible assessed at 1/4 of actual value, 1922 to date.

© 2002 for the NEGenWeb Project by Pam Rietsch, Ted & Carole Miller