The Idaho world. [volume] (Idaho City, Idaho Territory) 1864-1918, 1873-05-22

TIIURSDAY,.-..-- .-.--- MAI ~ 1919.
AN IMPORTANT DECIsION.-The Supreme
Court Of California recently rendered one OF
the most important decisions that has ever ema-
mated from the bench of that State. and one
which will no doubt be received az authority
BY the Courts of this Territory. The case in
which the decision was rendered was that Of
"Savings and Loan Society vs.. Austin. and Doe
"a. Austin" and several other cases of SINH
lar character were determined by the decision
referred to. The opinion Of the Court was
written by Judge Crockett, and is quite lengthy
filling three columns in the Sacramento Record.
Several important points were determined
First That the act providing for State Board
of EQUALIZATION was constitutional, and that
the primary valuation Of property as assessed
by local assessors was not final Second.
That taxation of solvent debts secured by mort
cages were unconstitutional, being double tax
alton, and consequently in violation Of that
constitutional provision requiring taxation to
be equal and uniform; and Third that injunc-
ton is not the proper remedy to restrain or
prevent the collection of such taxes The
point of double taxation is the one which SO
closely interests US, and upon which the decis-
ion is clear and uneqaivocal that promissory
notes, even where the debt is not secured by
mortgage, are not subject to taxation. The
Court says that the true point Of inquiry is
mot whether the debt is or is not secured by q
mortgage, but whether the money, for the use
of which the debt was created, is taxed in the
hands of the borrower or of some other tax
payer to whom he has paid it. The money is
the substance of which the debt is but the
shadow and representative; and though. in
general, and perhaps in strict sense, it is
being again converted into money. Neverthe-
less, it but represents the SUN originally loaned,
and tax upon the latter is substantially tax
upon the former" After the decision was an
nounced the State Board of Equalization is
sued a notice to all assessors throughout the
State, notifying them that under the decision
"solvent debts OF all kinds are not subject to
taxation" and instructing them, in making
their assessments, to "on,it all solvent debts. |
whether secured by mortgage or otherwise,
State, county and municipal bonds, notes, judg-
ments for money, scrip, county warrants, and
all other evidences Of Indebtedness" and order
ing them, where they had made such assess
ments. to cancel the same before delverin.
their assessment rolls to the Clerks of the |
Boards of Supervisors. Should this decision
receive the Endorsement of the courts here, it |
will make q vast difference in the amount of
taxes collected in our Territory; and if it is
good law in California there is every reason to
insist that il is good law here The question
will no doubt arise at an early day, as book
accounts, notes, mortgages. judgments. etc,
have heretofore been assessed, and under our
revenue act are still assessable; and it only re-
mains to be seen whether test case will be
agreed upon, or whether the local assessors
will attempt to enforce the provisions of our
law in the face of this decision of the Cali.
fernia Supreme Court. 1t is question vitality
affecting the revenue Of the various counties.
as well as that going into the Territorial Treas.
ury; and if this California decision is held to
govern here, then it may be necessary for the
Governor to convene the Legislature in extra.
ordinary session at an early day