The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1888-01-28

the failure to reach it imposes an unjust
burden on the owners of real property,
among whom are an immense number who
would otherwise think themselves happy in
the ownership of their little homes, which
are so important to them, but very many
Of which are now assessed at value larger
than the property could possibly be sold
for in the market
MONEY TO BE ASSESSED.
Another peculiarity of our assessment
acts is that money is not enumerated as one
of the items to be put on the assessment
lists, whereas, in nearly if not quite all the
other States in the Union money heads the
list as the first item to be inquired for by
the assessors. The consequence of this
omission is that very many owners of cou-
pom bonds and other investments of in
terest-bearing capital prepare for our ten
year assessments by selling off their invest
ments and turning them into cash, to be
probably repurchased after the assessor has
finished the listing of their property. Our
assessment laws heretofore have only sub
jected to taxation investments of money
and not the money itself, SO that if man
could contrive to have his wealth all re-
duced to money at the time Of assessment
he would escape taxation, although he
might have it all reinvested on the next
day after the assessor has passed him. 1
suggest, therefore, that money be made the
first item of charge in any assessment bill
which may be passed.
GROUND RENTS.
| also suggest that ground rents should
be declared by law to be personal property,
and that rule for eapitalizing and charg
ing them as other taxable property should
be enacted. / know of no reason why the
owner of ground rents should be exempt
from taxation more than the owner of any
other property. 1t is as reliable source
of income as any in the State, and under
the system which has grown up in the city
of Baltimore, very large amount of the
most valuable property being invested in
ground rents, has been allowed to escape
taxation for want of system of assessment
for it. 1t is, of course, proper and right
that the former owner, who has parted
with the whole usufructuary interest in the
land, merely retaining lien to secure the
payment of his annuity, should have a
covenant from the purchaser to keep the
taxes on the land paid up, because other
wise the security for the payment of his
rent might be endangered and lost; but that
is no reason why the lessons estate, which
consists of the well-secured annuity,
should be exempt from taxation, and no
law has ever been passed to make it so
exempt. This large amount has been lost
for years to the basis of taxation because
no provision of law has been made to have
such annuities capitalized and assessed. |
should think that the amount of loss to the
basis Of taxation in the State by the alb
sence of such provision in our law can
not be less than from fifty to sixty millions
of dollars. The New York statute (1846,
chap. 327) declares ground rents to be
personal property, and orders their capital
ization for the purpose of assessment at six
per cent. l can see no reason why this is
not the proper rate for capitalization,
for the purpose of taxation, as the an
nuity is always worth this rate when
paid, and if not paid, and forfeiture of
the land and improvements occurs, the
subsequent assessment would be upon an
entirely different basis. 1t is to be hoped
that this very important matter may be at
tended to by the present Legislature, which
WILL by increasing the basis of assessment,
be entitled to the gratitude of all the tax
payers of the State owning other property.
EXEMPTIONS FROM TAXATION.
That the trainers of our constitution in
tended to deny to the legislative branch of
the government the power to exempt any
class of persons, or the owners of any class
of valuable property, from taxation is, l
suppose, generally believed to be true, but
the quaint, antiquated and unintelligible
language in which they unfortunately
clothed the article in the declaration of
rights upon that subject has not been con-
strued to have that meaning, and hence
for very many years we have had in our
State specially favored species of property,
the owners of which, by reason of such
ownership, have the immense advantage of
being free from taxation. Class legislation
of this sort is insidious and generally
founded upon some speeious theory Of pro-
tecting some special interest, though it may
be at the expense of others, and is urged by
its advocates on account of some real or
imaginary merit which appeals at certain
crises to the liberality and generosity of
the law-making power, but which is almost
invariably source of regret after the crisis
of excitement has passed away.
GENEROUS EMOTIONS.
To remedy as far as possible unjust dis
elimination, which have been the result of
inlprudent yielding to emotions of generosi-
ty on the part of former Legislatures, is
one of the most obvious and unquestioned
duties of the Legislature at the present day.
If the law-making power were called upon
to-day to enact that John Smith, the owner
Of immense capital, in consideration Of his
taking up his abode in this State and in
yesting his money here, should be forever
free from taxation in this State, such pro-
position would no doubt be considered
morstrous and would nrohahlv NOT 6nd a |