ARTICLE XIII.

REVENUE AND TAXATION.

Property to be taxed according to value-Exemptions.

SECTION 1. All property in the State, not exempt under the laws of the United States, shall be taxed in proportion to its value, to be ascertained as provided by law. The word "property," as used in this article and section, is hereby declared to include moneys, credits, bonds, stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership; provided, that property used for free public libraries and free museums, growing crops, property used exclusively for public schools, and such as may belong to the United States, this State, or to any county or municipal corporation within this State, shall be exempt from taxation. The Legislature may provide, except in case of credits secured by mortgage or trust deed, for a deduction from credits of debts due to bona fide residents of this State. [Amendment adopted November 6, 1894.]

[Original Section.] SECTION 1. All property in the State, not exempt under the laws of the United States, shall be taxed in proportion to its value, to be ascertained as provided by law. The word "property," as used in this article and section, is hereby declared to include moneys, credits, bonds, stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership; provided, that growing crops, property used exclusively for public schools, and such as may belong to the United States, this State, or to any county or municipal corporation within this State, shall be exempt from taxation. The Legislature may provide, except in the case of credits secured by mortgage or trust deed, for a deduction from credits of debts due to bona fide residents of this State.

[Constitution of 1849, Art. XI, § 14.]

54 Cal. 353, 571; 56 Cal. 202; 57 Cal. 594, 600, 616; 58 Cal. 133, 137, 144; 59 Cal. 94, 336; 62 Cal. 71, 108; 63 Cal. 524; 65 Cal. 271, 457; 68 Cal. 254; 83 Cal. 406; 97 Cal. 220, 324; 99 Cal. 162; 103 Cal. 70; 106 Cal. 425; 108 Cal. 192; 113 Cal. 397; 116 Cal. 23; 117 Cal. 86; 119 Cal. 521; 128 Cal. 592, 612; 131 Cal. 362, 613; 132 Cal. 268, 600; 134 Cal. 478; 137 Cal. 518, 519, 524, 525; 139 Cal. 210; 142 Cal. 225, 284, 290; 148 Cal. 85; 149 Cal. 583. App. R. 2, 68, 565.

Churches exempt from taxation.

SEC. 1. All buildings, and so much of the real property on which they are situated as may be required for the convenient use

and occupation of said buildings, when the same are used solely and exclusively for religious worship, shall be free from taxation; provided, that no building so used which may be rented for religious purposes and rent received by the owner therefor, shall be exempt from taxation. [New section; adopted November 6, 1900.]

State, county, and city bonds exempt from taxation.

SEC. 12. All bonds hereafter issued by the State of California, or by any county, city and county, municipal corporation, or district (including school, reclamation, and irrigation districts) within said State, shall be free and exempt from taxation. [New section; amendment adopted November 4, 1902.]

Assessment of lands.

SEC. 2. Land, and the improvements thereon, shall be separately assessed. Cultivated and uncultivated land, of the same quality, and similarly situated, shall be assessed at the same value. 104 Cal. 622; 137 Cal. 525; 149 Cal. 87.

Assessment of tracts of land.

SEC. 3. Every tract of land containing more than six hundred and forty acres, and which has been sectionized by the United States Government, shall be assessed, for the purposes of taxation, by sections or fractions of sections. The Legislature shall provide by law for the assessment, in small tracts, of all lands not sectionized by the United States Government.

140 Cal. 582.

Taxation of mortgages.

SEC. 4. A mortgage, deed of trust, contract, or other obligation by which a debt is secured, shall, for the purposes of assessment and taxation, be deemed and treated as an interest in the property affected thereby. Except as to railroad and other quasi-public corporations, in case of debt so secured, the value of the property affected by such mortgage, deed of trust, contract, or obligation, less the value of such security, shall be assessed and taxed to the owner of the property, and the value of such security shall be assessed and taxed to the owner thereof, in the county, city, or district in which the property affected thereby is situate. The taxes so levied shall be a lien upon the property and security, and may be paid by either party to such security; if paid by the owner of the security, the tax so levied upon the property affected thereby

shall become a part of the debt so secured; if the owner of the property shall pay the tax so levied on such security, it shall constitute a payment thereon, and to the extent of such payment, a full discharge thereof; provided, that if any such security or indebtedness shall be paid by any such debtor or debtors, after assessment and before the tax levy, the amount of such levy may likewise be retained by such debtor or debtors, and shall be computed according to the tax levy for the preceding year.

57 Cal. 594, 600; 59 Cal. 544; 60 Cal. 35, 58, 371; 65 Cal. 383; 66 Cal. 213; 72 Cal. 36; 76 Cal. 293; 77 Cal. 137; 83 Cal. 396; 84 Cal. 301; 89 Cal. 202; 91 Cal. 11; 92 Cal. 296; 94 Cal. 318; 96 Cal. 625; 99 Cal. 609; 113 Cal. 397; 118 Cal. 492; 121 Cal. 343; 123 Cal. 355; 128 Cal. 592, 610; 129 Cal. 298; 131 Cal. 361; 134 Cal. 86; 144 Cal. 435, 436; 145 Cal. 55.

Contract to pay tax on borrowed money, void.

SEC. 5. [Repealed; adopted November 6, 1906.]

[Original Section.] SEC. 5. Every contract hereafter made, by which a debtor is obligated to pay any tax or assessment on money loaned, or on any mortgage, deed of trust, or other lien, shall, as to any interest specified therein, and as to such tax or assessment, be null and void.

59 Cal. 544; 76 Cal. 292; 91 Cal. 11; 99 Cal. 495, 608; 103 Cal. 376; 104 Cal. 107; 110 Cal. 541; 115 Cal. 512; 131 Cal. 604; 134 Cal. 86; 140 Cal. 579.

Power of taxation not to be impaired.

SEC. 6. The power of taxation shall never be surrendered or suspended by any grant or contract to which the State shall be a party.

Payment of taxes by installments.

SEC. 7. The Legislature shall have the power to provide by law for the payment of all taxes on real property by installments.

Taxpayer to make statement to County Assessor.

SEC. 8. The Legislature shall by law require each taxpayer in this State to make and deliver to the County Assessor, annually, a statement, under oath, setting forth specifically all the real and personal property owned by such taxpayer, or in his possession, or under his control, at twelve o'clock meridian on the first Monday of March.

56 Cal. 206; 61 Cal. 103; 73 Cal. 622; 96 Cal. 626; 131 Cal. 39.

State and County Boards of Equalization.

SEC. 9. A State Board of Equalization, consisting of one member from each congressional district in this State, as the same existed in eighteen hundred and seventy-nine, shall be elected by the qualified electors of their respective districts, at the general election to be held in the year one thousand eight hundred and eighty-six, and at each gubernatorial election thereafter, whose term of office shall be for four years; whose duty it shall be to equalize the valuation of the taxable property in the several counties of the State for the purposes of taxation. The Controller of State shall be ex officio a member of the board. The Boards of Supervisors of the several counties of the State shall constitute Boards of Equalization for their respective counties, whose duty it shall be to equalize the valuation of the taxable property in the county for the purposes of taxation; provided, such State and County Boards of Equalization are hereby authorized and empowered, under such rules of notice as the County Boards may prescribe as to county assessments, and under such rules of notice as the State Board may prescribe as to the action of the State Board, to increase or lower the entire assessment roll, or any assessment contained therein, so as to equalize the assessment of the property contained in said assessment roll, and make the assessment conform to the true value in money of the property contained in said roll; provided, that no Board of Equalization shall raise any mortgage, deed of trust, contract or other obligation by which a debt is secured, money, or solvent credits, above its face value. The present State Board of Equalization shall continue in office until their successors, as herein provided for, shall be elected and shall qualify. The Legislature shall have power to redistrict the State into four districts, as nearly equal in population as practical, and to provide for the elections of members of said Board of Equalization. [Amendment adopted November 4, 1884.]

[Original Section.] SEC. 9. A State Board of Equalization, consisting of one member from each congressional district in this State, shall be elected by the qualified electors of their respective districts at the general election to be held in the year eighteen hundred and seventy-nine, whose term of office, after those first elected, shall be four years, whose duty it shall be to equalize the valuation of the taxable property of the several counties in the State for the purposes of taxation. The Controller of State shall be ex officio a member of the board. The Boards of Supervisors of the several counties of the State shall constitute Boards of Equalization for their respective counties, whose duty it shall be to equalize the valuation of the taxable property in the county for

the purpose of taxation; provided, such State and County Boards of Equalization are hereby authorized and empowered, under such rules of notice as the County Boards may prescribe as to the county assessments, and under such rules of notice as the State Board may prescribe as to the action of the State Board, to increase or lower the entire assessment roll, or any assessment contained therein, so as to equalize the assessment of the property contained in said assessment roll, and make the assessment conform to the true value in money of the property contained in said roll.

56 Cal. 102, 195; 59 Cal. 324, 328, 334; 60 Cal. 30, 60; 61 Cal. 101; 64 Cal. 504; 66 Cal. 213; 67 Cal. 624-5; 68 Cal. 497; 69 Cal. 465; 97 Cal. 324; 113 Cal. 401.

Property, where and by whom assessed.

SEC. 10. All property, except as hereinafter in this section provided, shall be assessed in the county, city, city and county, town, township, or district in which it is situated, in the manner prescribed by law. The franchise, road way, roadbed, rails, and rolling stock of all railroads operated in more than one county in this State shall be assessed by the State Board of Equalization at their actual value, and the same shall be apportioned to the counties, cities and counties, cities, towns, townships, and districts in which such railroads are located, in proportion to the number of miles of railway laid in such counties, cities and counties, cities, towns, townships, and districts.

56 Cal. 205; 59 Cal. 325; 60 Cal. 12, 29, 60; 61 Cal. 255; 63 Cal. 467, 608; 64 Cal. 483; 83 Cal. 396; 105 Cal. 591; 125 Cal. 499; 128 Cal. 593; 137 Cal. 515, 660; 142 Cal. 223, 234; 143 Cal. 432; 148 Cal. 317, 322, 323; 149 Cal. 84, 85, 89. App. R. 2, 565.

Personal property exempt from taxation.

SEC. 10. The personal property of every householder to the amount of one hundred dollars, the articles to be selected by each householder, shall be exempt from taxation. [New section; adopted November 8, 1904.]

Income taxes.

SEC. 11. Income taxes may be assessed to and collected from persons, corporations, joint-stock associations, or companies resident or doing business in this State, or any one or more of them, in such cases and amounts, and in such manner, as shall be prescribed by law.