A frequent complaint met with in this period of the state's financial history, and especially before 1876, is the non-rendition of land. This resulted in inequality of taxation, but the explanation for this escape lay largely in the failure of the law until 1879 to provide for the enforcement of payment of taxes on lands in the unorganized counties. Undervaluation of property and the escape of personalty characterized the period, though it had been hoped that the legislation of 1876 would establish a just system.6 The United States Census of 1880 gave the estimated true value of the property in the state to be $725,000,000. The assessed valuation for 1880, however, was only $311,470,000, or 41.5 per cent of the true value.1 In comparing the estimated true and assessed values, allowance must be made for legal exemptions; but these would account for only a small part of the difference.

1 This provision first appeared in the Constitution of 1869. Wright v. Straub, 64 Tex., 64 (1885).

2 Laws of 1879, p. 24.

3 It was estimated that at least four-fifths of the lands offered for sale were bid off to the state; Comptroller's Report, 1876. An act of April 19, 1879, provided for the monthly offering for sale of delinquent lands, but this was repealed in July of the same year, and the old policy returned to; Laws of 1879, p. 118; ibid., Spec. Sess., p. 36.

4 Laws of 1874, p. 173.

5 Laws of 1876, pp. 259, 265.

6 Messages of Governor Coke, January 12, 1875, and April 19, 1876, Message of Governor R. B. Hubbard, January 14, 1879. Comptroller's Report, 1875.

There was no standard of valuation for taxation of the property of individuals during the Reconstruction period. In 1873 it was enacted that rendition and valuation should be under oath, but the formal oath covered only the completeness of the inventory and the truth of answers touching it. In the event of disagreement over valuation between the assessing officer and the taxpayer each selected an arbitrator and they a third, and the decision of the arbitrators was final. The standard adopted in 1876 was "true and full value," which was the fair cash market value at voluntary sale.2 The oath prescribed in 1876 for the taxpayer did not differ from the preceding one, but that required of the assessor in submitting his assessment rolls covered the completeness of the list and the truth and correctness of the valuation. The laws provided for uniformity of assessment, but no adequate provisions were made for carrying them out.

The Constitution of 1876 failed to provide for the machinery that might have prevented flagrant differences among the counties in the percentage of assessed to true values. A new provision in Texas constitutions was section 18 of article 8 of the Constitution of 1876 which reads: "The legislature shall provide for equalizing, as near as may be, the valuation of all property subject to or rendered for taxation,-(the county commissioner's court to constitute a board of equalization) and may also provide for the classification of lands with reference to their value in the several counties." It is a matter of speculation whether this verbiage prevents the creation of a state board of equalization with broad powers of equalizing all county values, but the fact is that no such board has been created. The duties of the county boards were defined for the first time in 1879.1 For unorganized counties the board of equalization was composed of the governor, the attorney general, and the secretary of state.2

1 The census gives $320,364,515 as the assessed valuation, but this does not agree with the amount reported by the comptroller, and the latter's amount is taken. See Report of the Tenth Census on Valuation, Taxation, and Public Indebtedness.

2 Act of August 21, 1876; Laws of 1876, p. 275.

An explanation sometimes offered for the undervaluation or escape of property - especially for the escape of intangible property - is the high rate of taxation. The weight of taxes on property cannot be understood by looking at the state rate alone, but the rates levied by counties, cities, towns, and other taxing districts must be included. The Constitution of 1876 limited the state tax on property, exclusive of the tax to pay the public debt, to 50 cents on the $100 valuation.3 The county limit of taxation was fixed in the constitution at 75 cents, except in the case of coast counties which had such additional taxing power as the legislature might confer to construct sea walls, breakwaters, and for sanitary purposes, and except for the purpose of paying county debts incurred before 1876.4 The county tax, as limited by statute, however, was fixed at 75 cents, outside of a tax sufficient to pay the interest on the bonds subsidizing railroads and contribute to a sinking fund for such bonds.5

The taxing power of towns and cities was so defined in the constitution as to resolve them into several classes. It was provided (1) that no city or town should levy more than one-half of the state rate, except for the payment of debts already incurred and except for the erection of public buildings for which latter purpose a tax not to exceed 50 cents might be levied.'6 This limited the rate to 75 cents, except for the payment of debts incurred before 1876. It provided (2) that cities and towns having a population of 10,000 or less could be incorporated only by general law, with a tax limit for current expenses of 25 cents; and (3) that cities having a population of more than 10,000 could be incorporated by special act with a tax limit for any and all purposes of $2.50.1 These rates were laid down as maxima. The actual rates which were levied were such as the legislature authorized, and in the case of the specially chartered cities the maximum authorized has not been uniformly $2.50. The constitution provided (4) that coast cities could levy and collect such taxes as might be authorized by the legislature to construct seawalls, breakwaters, and for sanitary purposes.2

1 Laws of 1879, p. 44. I. & G. N. R. R. Co. v. Smith County, 54 Tex., 1 (1880).

2 Laws of 1879, p. 141.

3 Art. 8, sec. 9.

4 Art. 8, sec. 9; art. 11, sec. 7.

5 Laws of 1876, p. 52; ibid., p. 174. Laws of 1879, pp. 33, 61, 109; Rev. Stats., 1879, art. 1516.

6 Art. 8, sec. 9.