The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-07-19
THE TAXES MEXICANS PAY
Property Assessed on Its Monthly Rental
with twenty-five Cents Added.
A Large Revenue Derived from Taxing Liquors
and Licensing Decentralization on
Pulque and Shops Where 1t Is Sold.

Ex-Mayor Grubbs. who has lived III Mex
from there q few months ago. was asked.
yesterday. by q Journal reporter, as to the
methods of taxation In the neighboriDg
republic. the inquiry being suggested by
the present Indiana tax law. 1.-The assess
ment of taxes on real estate In Mexico"
said he. lis made in q manner differing
somewhat from that pursued in this cOun-
try. In the larger cities. what is known as
the praedial tax is the tax the owner of
real estate pays the government IL his
property is occupied. If the property is
rented to another, he pays. on the 1st of
each month. IL per cent of the price per
month stipulated in the lease. and there
must be written lease if the rent amounts
to 800 or more per annum. In this
way the lease furnishes the evidence
IL the owner of the property
liyes in 1t. or occupies it In
any manner for his own uses the govern
mates what the monthly rental of the
premises should rightly be, and IL per
cent. tax is imposed on such vain alton, and
this must be paid In equal monthly INSTALL
ments."
How is thatF' asked the reporter.
"FOr example, if a certain house would
rent for 500 q month, the praedlal tax
would be Sl2 each month. This does not
end il. at least outside the federal district.
For everv dollar of tax assessed by the sew
eral States there is added % cents for the
general government. For this federal tax
the collector IS not permitted to receive
money. The taxpayer is required to pur-
chase government stamps to the amount
AdSra than
the collector, who places them on tie
back of the receipt for State taxes,
and then cancels them. But before
doing this be cuts the stampinto two parts.
one part to be sent to the proper depart
ment In the City of Mexico. where they
serve as q check upon. and charge against,
the officer who sold them.
THE President of Mexico" Mr. Grubbs
continued, lis possessed of powers which.
in repablic. seem strangely misplaced
Almost every law has a string to it. and he
holds the string. For instance, the PaseO
de la RefOrma is the fashionable residence
Mexico. 1t is q handsomely improved
boulevard three miles in length.
terminating at the historical castle of
Chapultepec. Property bordering on this
drive is held at higher price than on
streets much nearer the center of business
| A recent decree of the President exempts
| from taxation for ten years, all property
along the line of said street on condition
| that the owners of lots shall build on the
| same within three years: shall leave a
lawn of eight yards in depth in front of
their houses and keep the same in good
condition. This is certainly an easy way
| of escaping taxation. The property is too
valuable to be permitted to lie idle, and
| the owners generally would find it TO their
| advantage to build whether taxed or free.
| The strange feature of this transaction is
| that it is possible for such decree to be
issued by any official in a republic, it being
npI,n OF r,lo IN 10 N form nfU
| eminent that taxation shall be uniform
| and equal, and that special privileges and
| immunities shall not be granted whereby
| any citizen shall be relieved from bearing
| his due share of the public burden"
What about liquor license or taxi"
1.-THE cities of Mexico realize large sums Of
money from the taxation of liquors and the
licensing of hquor-dealers. In the City of
very large indeed. Every liquor and pulque
shop pays q monthly license. Pulque is the
common or cheap beverage of southern
Mexico, corresponding to our malt beer. and
its intoxicating properties are about the
same. chemical tests showing the presence
| of per cent. alcohol. 1t is purely vege-
table" being extracted from the maguey
| plant, species of the cactus. known to US
| as the century plant. Throughout tropical
| Mexico extensive haciendas. or farms, are
entirely given up TO the cultivation of this
| plant. and there Is rarely to be found q
| more beautiful rural scene than that pre-
sented by an extensive and well-cared-fOr
maguey plantation. In addition to the
license fees on saloons" Mr.. Grubbs fur
| Their said, IAN octroi, or gate tax, is col
lected on all pulque coming within the cit :
limits For the fiscal year recently ended
| this gate tax amounted to the sum of S570,-
900, or more than $500 a day. This is
| merely what it costs to permit the pulque
xthe beer of MexlcO-tO enter the city. 1t
| pays this tax, amounting to cents a gal
| lon. and is then retailed at l cent for an
| ordinary glass or cents for large
schooner. Add to the above the tax on
alcoholic liquors, and also the license fees
| paid by each saloon-of which there are
| thOusands-and some idea may be formed
of what the city realizes annually from the
| liquor traffic. The City of Mexico has a
| population of less than 100000. yet the
amount paid into the city treasurysAy liQ-
! uor-d dealers alone cannot fall short of $500,
| 600 a year, The pulaue shops open at q
| o'clock in the morning and close at 8 In the
afternoon, and not one of them has back
! door,