The Placer herald., 1870-01-08
Taxing Mortgages.

VsIlOus ses''Vhs W tuc AeSs'e'"'~ 10 -"
apitatsd and bill has been introduced BY
Mr.. Moy uibau OF San Francisco to exempt
mortgages from tsxation. On this question
The Senona Democrat announces about the
correct doctrine 10 thsory as follows:
"lf a change is to be made, change
must be made TO avoid unconstitutional and
double taxation. let the law be 40 frame
as to tax each aud every man for just what
be owns, and no moro. A. is in possession
Of property valued At S25 900, and there
10 a mortgage on it for 10000, then
should be made to paw taxss on $4,000
only, a. this figure is the extent Of his mon
ey interest 10 the came. Then assess the
holdsr OF the mortgage for the balance $40,
900, and thus tho full amount Of taxation is
fairly reached. This appears US the p ain
honest course. and it 10 to bs hoped our
legislators will guard we'll tho peoples inter
ss,s in this important particular. Justice
does no. demand doubls taxation Of any
species Of property, but it would be gross
injustice to exempt any set OF men from the
necessary burdens Of government"
The Mountain Democrat also takes about
the same view of the question and says:
"To avoid property being douby taxed,
which ia now done to a considerable extent,
We believe a law should be passed lbs,
would deduct from the assessed value Of all
real estate the amount owing on the same,
secured by mortgage. The person loaniug
money on real estate, taking a mortgage
for security, gsts interest on his money and
can we'll afford to pay taxes on the same.
Holding those views, We are opposed 10 any
law sxsmPting mortgages or money at in
tsrssi from taxation"
The Constitution OF this State is very
PLAIN and specified on The subjs"t Of taxa
.on, aud there should be no difficulty 10
framing a law that would reach and tax at
it's just valuation all property 10 the Slate
and at The same time avoid double taxation.
There are hundreds and thousands OF cases
whore property 10 mortgaged for more than
it is worth, and in some instances for double
and treble its value. Espscially is ibis
the case in portions Of the Slate whers
property has rapidly and ruiuousIy depre-
cia,ed in value. These are patent and no
torious facts known to tho people of the mi
ping districts. The theory laid down by
the two papers above quoted is correct, but
ito practical workings in these cas-" would
work hardship and double and treble tax
alton might follow the taxing Of mortgages
indiscriminately At tn cir face. mort
gage is not property but only lien on
property and cannot represent a value
which morlgagsd premises does not possess
There is no authority 10 The Constitution
for the direct taxation Of sny thing but prop
srty. We think The better mode Of reach
log and taxing every mans interes. direct
or contingent in property is 10 assess the
property itself at its full value and then
provide that the mortgagor shall be cred
tied by the mortgage with the full amount
Of taxes paid oD the value of the morlga-
gees lien on the property. A. has proper
~ valued at $40, 900, and the taxes on il
are 5000. B. holds a mortgage on the
property tor $4,000 A. pays tie 5000
aud charges b. with SloO, which is credit
as so much money paid on the mortgage
This would settle the whole question and
make each party pay bis due proportion oil
taxes. 1t is property that is assessed and
bound for the taxes, and if they arc DO,
paid, must be proceeded against and sold 10
pay them. But the remedy ws suggest
would give the owner a credit for tho foil
amount which should hs paid by The mort
gagss and settles the whole question equ,.
ably and Justly, and leave only the visbl
property to be looked after by Assessors
and COLLECTORS. This would simplify our
revenue laws and make them more easily
understood and enforced.