332 THE FISCAL PROBLEM IN MISSOURI 
tax; (5) special taxes on business, including incorporation 
taxes, the corporation franchise tax, the foreign insurance 
company tax, and the express company tax; (6) the gasoline 
tax and motor vehicle licenses; and (7) miscellaneous business 
and non-business licenses and permits. 
The general property tax is an important source of state 
revenue and predominates in the finances of all local govern- 
ments. The exemptions from the general property tax are 
comparatively few in number, although the value of exempt 
property is large. The total state rate on property is a com- 
bination of rates levied for specified purposes. For taxes of 
1928 the state rate was $0.14 per $100 of assessed valuation, 
and for taxes of 1929 and 1930 the rates were $0.13 and $0.12, 
respectively. Local rates on property vary widely. The 
average is probably between $1.95 and $2.00 per $100 of 
assessed valuation. In general, there are considerable dif- 
ferences between urban and rural tax rates. Other important 
factors tending to cause difference in tax rates are variations 
in assessment ratios and differences in the extent to which 
certain species of property escape taxation. 
The inheritance tax is an important element in the state 
revenue system. The rates are steeply progressive, beginning 
with 19, on the first $20,000 above the exemption passing to a 
close relative and attaining a maximum of 309, on shares 
amounting to more than $400,000 passing to very distant 
relatives or non-relatives. Statutes have been enacted in 
recent years that provide for the levying of an additional 
state tax, in accordance with federal legislation enacted in 
1926,and for interstate reciprocity in certain inheritance tax 
matters. 
The Missouri income tax has been in effect since 1917. 
Since 1921 the income tax rate has been 19%, for corporations 
as well as individuals. Residents are taxed on income re- 
ceived from sources within and without the state; non- 
residents are taxed on income from sources within the state; 
and domestic and foreign corporations are taxed on income 
from sources within the state. The incomes of fifteen distinct 
classes of organizations, associations, or corporations are not 
taxed. The personal exemptions are $1,000 for a single per- 
son, $2,000 for a married person or head of family, and $200