276 N.W. 150 | S.D. | 1937
This is an original proceeding in this court in which a writ of mandamus is sought against W.T. Knudtson as county auditor of Minnehaha county. Under the provisions of chapter 254, Laws 1937, it is made the duty of the state board of equalization annually to levy a tax of two mills for rural credit purposes upon the assessed valuation of all taxable property within the state, except the homestead as defined by law. Plaintiff claiming that a homestead is limited as to value instituted this proceeding for the purpose of compelling the extending of the two-mill levy against the amounts in excess of the alleged statutory limitation. Ole M. Gunderson intervened in this proceeding alleging that he is the owner of 160 acres of land in Minnehaha county occupied by him and his family as a homestead and that the assessed valuation of this tract of land including structures is $9,300 and praying that the application for writ of mandamus be denied. The plaintiff has interposed demurrers to the petition in intervention and the answer of the defendant county auditor.
[1] During the same session of the Legislature a statute exempting homesteads from any tax imposed by the Legislature to defray the expenses of the state or to pay any deficiency and providing the manner of listing the same for taxation was enacted. Chapter 209, Laws 1937. This statute, as in the act providing for *549
a rural credit tax, refers to "the homestead as defined by law." The homestead right depends entirely upon constitutional and statutory provisions and we must look to those provisions to determine what that term or designation means. Bailly v. Farmers' State Bank of Sisseton,
"The homestead as created, defined and limited by law," under the provisions of section 323, Code of Civil Procedure 1877, was *550 exempt "from attachment or mesne process and from levy and sale on execution, and from any other final process issued from any court." By amendment of this section, chapter 86, Laws 1890, there came into existence, for the first time a limitation of value to apply in favor of creditors. Subdivision 7, section 2658, Rev. Code 1919, had its origin in that statute. It reads in part as follows: "The homestead, as defined and limited in title 1, to be selected by the debtor, his agent or attorney; provided, if, in the opinion of the creditor or officer holding an execution against such debtor, the premises claimed by him or her as exempt are worth more than five thousand dollars, such officer shall summon three householders, having the qualifications of electors of the county as appraisers, who shall, upon oath, to be administered to them by the officer, appraise said premises."
These provisions and the history of our legislation upon the subject of homesteads were considered by this court in Hansen v. Hansen,
In Peck v. Peck,
[2, 3] We cannot follow the course of reasoning presented by counsel for the plaintiff wherein they contend that a different interpretation of the term "homestead" must result in view of the rule that laws exempting property from taxation must receive a strict construction in favor of the taxing power and against those claiming exemption. The rule of strict construction does not call for a strained construction; it must always be reasonable and will not be applied to defeat the expressed intent of the Legislature. State ex rel. Eveland v. Erickson,
[4-6] It is the contention of counsel for the plaintiff that the effect of construing the statute in question to provide for the exemption of a homestead limited in area but not in value is to render the statute unconstitutional; that a homestead under such construction may be a lot and a small dwelling thereon or a valuable tract of farm land with its buildings. It is urged that such unlimited exemption is inequitable and unjust. The Legislature has the power of prescribing the subjects of taxation and exemption. The Constitution, section 2, article 11, expressly so provides; "to the end that the burden of taxation may be equitable upon all property, and in order that no property which is made subject to taxation shall escape, the legislature is empowered to divide all property including moneys and credits as will as physical property into classes and to determine what class or classes of property shall be subject to taxation and what property, if any, shall not be subject to taxation." This section of the Constitution does not require all property to be taxed. This constitutional amendment adopted in 1918 abrogated limitations contained in the Constitution upon the legislative power to exempt property from taxation and the Legislature is clearly empowered to exempt from taxation property of a particular class. In State ex rel. Eveland v. Johns,
For the reason stated, the proceedings should be dismissed. It is so ordered.
All the Judges concur.