, 1881-09-06
TAXATION OF MORTGAGES.

to bo MI tl.nt Is tefttO work and pr1y for.
TAXATION OF MORTGAGES.
Tile question Of the taxation Of mortgages
flns beeM n p0rplextng ono to that class ut
statesmen who seohl to regard tile possession
Ut capital to be Il Cri!ne against the public,
and crime OF such magnitude that nothing
less t|lan Its lcgni coll'lscatlon or exclusion
from tho State Will meet thu ends of justice.
Tlle laws Of tnis State provide for tho taxn-
tton Of mortgages. but, Hike a1l tic other oatl,-
bound alltl ctist-lroll provisions Of our 1evo-
nue law for Tie discovery mud taxation Of
credit, tho law Is substantial failure.
There ltas nlways boel radical defect III
tho iaw In tlis Slate. lnas,nucti rs II pro.
vidcs for tho to.lb'e taxation Of tin property
lnortgagcd. THUS tito trnut ot land or tho
improved city lot Is nsscssGd ut Its taxable
vnlue; tu tux II mortgage given to
secure tlle purchase money or to Sc
euro the nlolley borrowed and Invested
In tile Improvement Is OF necessity
taxing the same property twicc. Neycrthe-
less, for many years thu present Inv l,as been
III force, and It's glar1ng Injustice has been
zeatuusly chn1Mpi0ned anu defended, 14ast
winter, h0weyer, light sCcnls TO lIuyo brokOn
ltpon tlp intelligence Ut tic antl.cup!tul
Legislators to thu oxtcnt 1T enabling them to
.lisroyer tint tie law Of Illinois taxing mort
Eages provided fur double taSatton, md tho
Into session WIS spent in frnltless efforts 10
remedy this defect. ,rho same discovery
seems to have beel made by tho Legislature
Of Massachusetts. mid TINT body did mature
Il Inv Which, ut the tl,ne of its passage. w.ls
kofi mn ri ,f 1oft ,fo
the lnppy manner I'll which it provided for
taxing mortgages without resortng to tlou-
Bio taxation. As tiIs Massachusetts scheme
| may bu presented III this md other Western
Stntcs for adoption, 1t Is well to geo what 1t
nlcalls.
/ This new Inv Is Intended to mike tho
morigagcc pay tho taxes Oil tho amount or
value Of his mortgage, md tho process by
| which he Is to be reached may be stated
thus: \ l,as propurty assessed Mt 100000,
and tuxablo Mt that valuation; he borrows
sa,000 Of H. giving mortgage therefor. Tho
| new law provides tl!at tho Assessor shall re-
| porttile valuation md the mortgage, and tho
tax collector shall Makcollt Il tax.bilI against
| tile H0rtgaKe0r for tho tAx on tho property Y
assessed OIL the valuation III excess OF tho
mortgage, md another bill against tlie mort
| ENGee for the taxable yaluo Of Ills mort
| gago-tno m0rtgageor nntl MortgaEeo being
treated for purposes of taxation NJ owners uf
thu property III proportion 10 their snyurpl III
terests therein. If thero bo moro tl,al one
mortgage. then the yuluo of cacI, li,ortga.
/ geo's Interest shall be asccrtuined, aud llo
shall bo served with II tax-bill. Tile law
further provides that wherever tl,a mort
gageo falls to pay tic taxes Oh Ills tnturost
tho mortgagcor nay pay the samo a1,d bo ell
Titled to u credit OIL the mortgage itsolf for
tie amount paid by Him. This is tho prucecs
by Which thu Massachusetts Legislature on
pects to collect taxcs on mortgages iii Tint
State, ai!tl to distribute the taxation nlt,ong
the sevcrAl persons who should Justly pay
tho 6ntne.
Unfortunately for tho law, or, moro prop
erly speaking. unfortunately for tia onll
pr0p0sell, It contains II provls0 tilat nothing
therein contained Hhnll be construed III
lcprlylng tho parties to tho mortgago
from contracting that thu mortgageor
shall my all tAxcs on tho mortgago.l
premises and tllo SUCCESS OF tho Inv
Is. further embarrassed by tllo fuel
that tho general fOrnl Of tho mortgages
now existing md III force III That Stntu COLI
tatns tlIs particular stipulation. The rusul.
will bc that, 10 fur us existing mortgages arc
concerned, tic new law will be non-oporatiyu
mud 1t Is pretty certnin nlso that in nll neW
mortgage contracts the mortgagoor will b.
required to pay thu taxes.
Tho practical result, therefore, OF the new
law Is to reIcass tile mortgages OF all lsg,
obligations tn pay tnxes OH the security and