Sent: Wednesday, May 26, 2004 3:51 PM
To: '[email protected]'
Subject: Statutory Authority
Importance: High
Mr Harrison,
My question last night refers to both the Conveyance Tax and the revenues that flow into the
BOE Special Program Fund. The question was based on the following:
"It is against the policy of the law to raise taxes faster than the money is likely to be
needed by the government. People vs. Chicago ; N. W. Ry. Co., 331 Ill. 544, 546, 163 N.E. 355, 356;
People vs. Sandberg Co., 277 Ill. 567, 570, 115 N.E. 741, 743; State ex rel. Johnson vs. St. Louis-San
Francisco R.R. Co., 315 Mo. 430, 286 S.W. 360. In the absence of statutory authority, a tax cannot be
levied for the sole purpose of accumulating funds in the public treasury, such as for remote or
future contingencies that may never occur; nor can it be levied in excess of the amount
required for the purpose for which it is levied, with the intention of using the excess for another
purpose. 61 C.J. Taxation 167; 681, and cases cited.
Subject to the restriction that the constitutional or statutory requirements be complied with
in regard to the manner or mode of determining and fixing the amount or rate of the tax and as
to the limitation of such amount or rate, the amount levied should be commensurate with public
needs, and such a [**7] rate of taxation should be fixed as will produce the amounts required to
be raised; and is illegal as to any excess over the amount necessary to produce the funds
required to be raised." Holmes v. Beckwith, 11 Conn. Sup. 215 (1942). (underscoring supplied)
Continued on Page 2
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