The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1882-01-27
Taxation Of Mortgages.

This veyed question arises with the peri
odical regularity of an intermittent fever at
each recurring session of the Legislature. -
The majority of the representatives Of the
people have time and again refused to lend
their sanction to its re-enactment, and the
press and the people themselves, as far as ex-
preston has been had upon the subject, have
sustained their action in defeating it but
like Banquo's ghost, it will not down Mt their
bidding Persistent effort is made at every
session to impose such law upon us. Be-
ing simple question of revenue and expe-
diency, it is of course Invested of political
significance. We have heretofore called at
tention to the short sighted policy--for such
We consider it-of driving capital away from
our State, by subjecting it to double taxation
In the counties especially, where men fcom-
paratively small means have accumulated
sufficient money to make a first payment
upon nedium.sized farm, and depend upon
borrowing the residue of the purchase money,
which by prudent foresight they are rea-
sonably sure of repaying, it would he bur.
den that they would hesitate to assume, and
would go far to retard the improvement of
our real estate for it is to just such men as
these to whom we are largely indebted for
such improvements Mortgages already ex-
isting would be foreclosed at once, unless the
mortgagor would give satisfactory assurance
OF his willingness and ability to assume the
extra payment in the way of taxation. 1t
would be deriving an income to the State at
the expense of expressing large and indus
trious class of her citizens who cheerfully
pay equal taxes upon their property, but who
IN the event of the passage of the bill would
in its practical working he called upon to
duplicate them.
As to the question of so framing the law
that the party lending The money shall him.
self pay the tax upon his mortgage security,
that is simply out of the question, as long as
his money is his own and he is not COM
PEELED to make his Investments in any par
ticular shape. But it is said, money is now
cheap, and investors are glad to get six per
cent and pay taxes. Suppose money were
loaned for five per cent. it would be owing to
the abundance of the supply, and the borrow
er should have the advantage of it but be
the rate of interest what it may, the lender
has always the option of prescribing con.
dition upon the borrower to pay the tax, and
so the borrower in measure loses the ad.
vantage of the cheap rate by the additional
burden. No legislation short of an act to
compel the lender to accede to the terms of
the borrower could ever practically impose
this tax upon the MORTGAGE Such an act
of course, could not be passed. 1t is said
that deficiency in the revenue exists because
the money invested in mortgages is exempt
from taxation. Is this so? In a great num-
Der of cases money borrowed on mortgage is
applied to the Improvement of property, in
creasing its taxable value well nigh to the
amount so borrowed, or to the purchase OF
property by those in whose hands its value
is greatly enhanced Thus the revenues of
the State and county are not so largely de-
trauded, as at first glance might appear
Surely it would not be right, whatever the
case, to impose upon an already heavily bur.
dened citizen double rate of taxes.