The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1873-12-20
DOUBLE TAXATION,

l. It right IL bor,o" 5000 from you: invest II
in tmcnry-hv" cow. give ,"n any "lc fs l; ut PER
.h,n,i ' nav ttxr. on I'M. cow: We vnterstand a
nnmh'r IT our taxa.,rs think IL unjust. Propose to
'r' it, '-ai. IL the Territorial courts. and II descsi'
a. H. ,nk" it 10 Wa-h!G. on.-- WO"'dntd".
\ submitted case involving similar is
sue T." the above is now held under advise
memt Ivy Judge Knowles. the case being that
Of Dewitt W. the Commissioners Of Deer
Lodge county. The question, We believe,
is whether a party can hc required to pay
the full assessed valuation on q piece Of
property, while lie owes an indebtedness Oh
it covered by mortgage Ofthe property. We
are told that parallel case has recently
been decided in California and that the
decision is the property is taxable to the
full amount. and also the indebtedness on
it in the hands Of another party.-NEw
NuRTH- WEST.
Subsequent I" the appearance Of the
above. a gentleman handed us a paragraph
from the Il. Louis Republican, stating the
California decision was directly the reverse
Of that stated above. The information
wlwrcon the statement was based, was de-
rived from one Of our county Commission
"r> vino. under the circumstances. had
II al tn" statement Of the California decis-
ion with care. and who is yet certain the
statement WAS made as We gave it. How
ever the following, for which We are in
dcbt,d to n friend in Helena, gives the
language Of the California decision, and it
is in direct opposition to our statement. II,
as We take it. the decision is under the
State Constitution Of California and does
not apply where there is no specific prol'i-
bitlou ~ double taxation, it is still Of in
terest AS showing the equities involved in
this question:
81 The supreme court Of California has de-
| citrd that the taxation Of u mortgage on
| land. or the money secured thereby, AMI
| the tax ltmn Of land. is double taxation
| and therefore uncoll>t nal. The court,
~ summing up the opinion. says:
Il conclude. therefore, that ajax on loans
made in the usual course Of business is paid
| by the borrower. and IL the debt le secured
! ny mortgage h. ais" pays tax on the mort
Gagged property. He is twice taxcd-,'nc.
~ the property and once "n the debt which
! the property rcprescnts-aid yet no new
value has been created by the transaction.
| lie is no richer. and has no more property
! than before. and il the money which lc re-
! crv,d from, the lender remained in his
! hands 80 that the property and the money
are each separately taxed; and il the mere
promise ar obligation OF the borrower t.
repay the money is also taxed and the tax
paid by him. rs it must be, it is clear that
he has been twice taxed On the same value
or subject matter. This is 4 violation OF
that clause Of the constitution which requires
! that taxation shall Ike equal and uniform,
and that property shall bc taxed in proper
ton to its value. When the mOrtgaget
property has once paid its tax it has dis
charged its full obligation to the State, ant
the owner Of it cannot and in justice ought
not to lie subjected to another tax. merely
because he la, borrowed sum Of money
for which the property Is pledged as re
curi,y."
Mr.. Graves. Treasurer Of Beaverhcat
county. collected all, except go. Of tin
taxes due in that county, before Dec. 1st.