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
