The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1886-07-27


paid by all protected, to support those VINO ad-
minister them. according 10 the protectlon each
one receives. for person or property.
This for persons implies an equal tax on all,
known as a Doll tax On property 1t is assessed
upon each, according TO the amount OF property
be has, but the same to all on each dollar The
man who has 500 at one per cent pays lOO cents
and the man with s.. go pays 10.UO cents.
This is equal taxation, and just, and any con-
sruction of law or laws which olsturbs this equal
lily is unjust and unconstitutional for the const-
tuition saws, each one shall pay his proper
proportion,' which is Interpreted TO mean ana no
doubt does the same rate. II ii IS construed-So
that one directly indirectly pays double, 1t is
more than his proportion
To attain egHify in taxation Is exceedingly diff
cult for the subject itself IS not fully understood
and the language of the laws are not clear and
are liable to IniscOnstructon.
tax is one per cent. and two per cent. direct
" indirectly is collected upon the same property
il Is sef-erdeHf from this result, that the law has
been misconstrued for IN its execution both the
Law and Constitution have been violated for the
collection of 81 when 81 only Is due, violates the
Law, and equality of the constitution. Double tax
alton though conceded TO be wrong has been eS-
tensively practced, in the United States, particu
larry in case of mortgages, and the property
mortgaged, TO secure their payment, and certih-
Gates of stock II corporations and The property OF
which the certificates OF ownership are the evil
dence. This double taxation occurred here, and
gave rise to the new Code of 1852, and the defni-
tions and the laws of 1852 are less liable to this
OE
to be substituted, and no more liable to evasion.
Massachusetts in 1881 passed an act to remedy
this abuse. Our act OF 1857 provides for taxing
all tbs persons and all the property IN the King
dom, and these are all that should be taxed. and
1t is less complicated than the proposed substitute
and easier of execution with less liability 10 abuse
Its definitions are simpler and more easily under
stood, as well as its precepts. As all definitions
will be, the simpler they are and the nearer the
statutory or technical language, comes to that
commonly received and used. Land is real estate.
It is fixed, stable, structures fixed to it. Machin-
cry fixed to It properly becomes real: detached
machinery, lumber, bricks, lime ETC., movable,
are generally merchandise, and personal properly.
They all have intrinsic value. ] do not see how a
claim to real estate can become real estate. 1t
cannot become fixture, ii has no intrinsic value.
piece of real estate may have several claimants,
and when the validity OF one has been settled, 1t
passes to a title, 10 the ownership, and although
this definition is only legal cannot think it the
simplest, and most easily understood. The pres
ent is less liable to demonstration and abuse as
the simpler always are. The law most uniform
and equal in its operation always gives the best
satisfaction, because il is the most Impartial and
best 1t comes nearest perfection The law of
property IN the Kingdom to the persons In posses
sion. This covers all which the Government can
constitutionallv call for See Article Il.
II is important that the assessment be judicious-
ly made, that fair and just valuation be given to
property, and to this end intelligent and upright
assessors are required, men who can give an intel
hgent judgment of the value of property, and
understand the relations which its value bears, to
Its earnings If such assessors cannot be had,
then Board of Equalization as suggested by Mr..
richardson, If the proper men can be had, should
be formed as a court Of appeal, on values, and
which cannot be correctly estimated without
knowledge of the relations which they bear TO
their earnings.
If all the persons In the Kingdom are assessed
and all of the property in their proportion, then
all will have been assessed upon which the Gov
H..
assessment would be wrong to the individual,
and the Governments rights are measured by the
amount required for an economical administra-
tion.e
Neither mortgages, notes, or accounts are prop
erty but in general they are the evidence of what
one Individual may owe to another, and how
much UIsthe debtors property IN possession, may
have to be transferred to the creditor, in payment
The transfer will not change the amount, only the
possession and whether this be in the debtor or the
creditor the Government gets its full due. To
illustrate A and b are each worth $4,000 for
which each one is assessed to-day $4,000. 1t is
al they worth. Tomorrow A borrows 5000
of b for which he gives his note. The assessor
calls and now has $4,000 and B $500 and AS
note for $5000=$25, 900 IF the note Is Ui0ReH but
the money remains $4,000 as the possession only
has changed, and holds AS note to show his
claim upon 5000 of the $1,000 in AS possession
Under the present law the rOle of the persons and
the property are assessed once. Under the old law
much Of the property was assessed tiries, that is
the creditor, and also the property IN possession
of the debtor which gave them value. If counted
and taxed as his property, then they should be de-
Quoted from the amount returned by the debtor
and not taxed to both. In the Massachusetts Act
either party may pay bit not both, the debtor is
expected to pay, and collect of the creditor, in
our law. The decrease in personal property, in
Honolulu from 1882 to the first year under the
new law was to be expected. 1t should have been
as it was The whole of the mortgages, notes,
and personal creditor accounts were returned
personal property before, and nearly all in the
Kingdom were held in Honolulu, and would not
now be returned, but until within few years, the
Taxpayers had been instructed to faithfully re-
turn all property and then to deduct from 1t all of
their debts due within the Kingdom. This gave
the value of their fr0e property with the debts
due out of the Kingdom added, and was the amount
taxed. The result was the same as the present law
would be, If faithfully carried out, and that prob
ably would have remained unchanged had not the
practice of double taxation in taxing mortgages,
notes, and accounts, and also the property in the
debtors hands, which gave them value, commenced
and been growing instead of the old and only sys-
tenn hitherto known.
The value of premises fixed at eight annual
rentals, for taxation seemed to me a definite and
good method TO arrive at at fair and Just yalua-
ton OF the major part of this class of property.
II represents capital, property, as earning 12 PEI
cent. which Is not unreasonable in country where
the legal rate OF interest Is per cent. and TIL
within few years y per cent. especially upon
wooden dwellings where insurance, taxes. repairs
and dllapldatIon must reduce the earnings to less
than the legal rate where capital earns and re-
mains unimpaired. This does not apply where
rental is only nominal. l should not think it wise
at this time to increase the taxes BY advancing the
valuation of this class of property from eight to
ten yearly rentals the equivalent of - per cent
added the tax assessed this class of property
Our law calls for the full value of property for
assessment, whilst the areyuge Of property valued
for assessment in the IS United States is only 1000
per cent, for every 500 of full value $40 only
IS taxed which comparatively makes our tax 21z
times higher than it appears to be. Massachusetts
pays s2-l00 cents and Nevada, which is the
highest, IS 21-10O cents on 500 of full value
Seven States av from 10 90 1n0 m "a 20 400 fonr