Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-10-25
DOUBLE TAXATION.
A Communication from Labor Commits
sioner Matthews on the Subject.

Editor Kenne6ec journal:
In view of the probability that the mort
gage taxation question will be brought before
the legislature at its coming session, the fol-
lowing extract from the law of California
may be interesting and instructive; Califor-
MIA is the only State in the Union which has
perfectly equitable tax system. 1t has
been in successful operation for several
years. | quote the principal section:
"All taxable property must be assessed at
its full cash value. Lands and improve
ments thereon shall be separately assessed
Cultivated and uncultvated land
of the same quality and similarly situ-
ated, shall be assessed at the same value.
A mortgage, decd of trust, contract or other
obligation by which debt is secured, shall
for the purposes of assessment and taxation,
be deemed and treated as an interest in the
property affected thereby, except as to rail
road and other great public corporations. In
case of debts so secured the value of the
property affected by such mortgage, deed of
trust, contract, or obligation, less the value
of such security, shall be assessed and taxed
to the owner of the property, and the value of
such security shall be assessed and taxed to
the owner thereof in the county, city or dis
trict in which the property affected thereby
is situated. The taxes so levied shall be a
lien upon the property and security, and
may be paid by either party to such sccarity
if paid by the owner of the security the tax
so levied upon the property affect
ed thereby shall become part
of the debt SO secured If the owner of the
property shall pay the tax so levied on such
security, it shall constitute a payment there.
on, aud, to the extent of such payment, q
full discharge thereof. If any such security
or Indebtedness shall be paid by any such
debtor or debtors after assessment and be
fore the tax levy. the amount of such levy
may likewise be retained by such debtor oil
debtors, and shall be computed according Il
the tax levy for the preceding year; and
every contract by which debtor is obliget
to pay any tax or assessment on money
loaned. or on any mortgage, deed of trust
or other lien, shall, as to any interest speci
| fed therein, and as to such tax or assessment
be null and void"
| The California law, as will be seen
enumerates mortgages, deeds of trust, con
tracts and other obligations by which deb
is secured, for the purpose of assessmeD
and taxation, as real property, OF an interes
| in the property affected thereby, which give
I the owners of land the same privilege of de
| ductions on account of debts so secured an
| the same relief from the burdens of taxatio
that the holders of personal property credit
enjoy under the laws of States which as i
Indiana, include "all obligations for none
or other property" as
! PERSONAL PROPERTY CREDITS.
The equity of this system is apparent, and it
practical workings are declared to be effect
i've and satisfactory. As all laws should b
founded on justice and equity, no considers
ton of mere expediency, or suggestion 0
efforts on the part Of money lenders to de
| feat its provisions by "charging back" the tai
es assessed upon the securities upon th
money borrower should have moments con
sideration. "Let justice be done though tn
Heavens fall. S. W. MATHEWS.