The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-02-16
NO MORTGAGE TAXES.
Paid by the Borrower, Not the
Lender.
PENALTIES ron oEL,NouENTs.
Steamboats, Mako Headquarters - Ssst.
tlc, bat Taxed In Small Countiss-As-
sessmsnt of Insursuoo Premiums.

OLYMPIA, Feb. 15.-[Speciai.1 lone Of the
very important measures to be passed upon
by the legislature is the revenue bill to be
reported by the joint committee on revenue
and taxation. The present law has not
worked satisfactorily in all respects, and
members Of the COMMITTEES think COM
plete new revenue code should be adopted.
The joint committee has been at work for
some time upon the bills of Senator For
rest and Representative Plummer, which
are nearly alike. It il expected to make
report of . substitute bill for both.
Speaking of the proposed law, Senator
Forrest Of King, chairman of the senate
committee, said today:
There are number of important par
ticulars in which We change the present
law. We strike ont the taxation of mort
cages, for the reason that the experience
of Oregon and other states that have tried
and are still trying to raise revenue by that
means has clearly shown two things: First,
that the revenue has not been increased;
and that the burden of taxation falls upon
the borrower, and not upon the lender.
My experience in this matter In King
county has proven that it costs more each
year to list uncancelled mortgages and
strike them off again, as il done in nine
cases out of ten, by reason of the holder
asserting that he held the mortgage as
trustee, than the county has derived in
taxation from that source. This fact can
be proven by reference to the records Of
King county.
Another thing" continued Senator
Forrest, 81 am positively informed that
the assessor of Whatcom county did not
list single mortgage in that county for
taxation for the year $780, and am salts
fed that in other counties this work is
either wholly neglected or but par
TALLY done. This is manifestly unfair
to those counties listing all mortgages, as,
lected from that class Of personal property,
and, in the other, not only the county but
the state tax is paid.
"A moments reflection will convince
anyone that the lender of money is always
in position to dictate terms to the bor-
rover. Such being the case, and the lender
knowing that his mortgage will be assessed,
i follows as natural consequence that
the tax is charged to the borrower in the
form of interest, and in many of the mort
cages filed in my Office while auditor of
King county provision was inserted COM
polling the borrower to pay all taxes that
might be assessed against the mortgage.
Our state is using large amounts of
capital IN developing its industries. It is
Of necessity borrower, and believe that
it will be greatly to the best interests of
the state to remove restrictions from the
lender. The capital brought in will be as
sessed in the form of improvements on
our real estate and on new or increased
manufacturing industries. To assess it
again in the form:of q credit would be and
is simply double taxation. Free money
always means cheap money. want to
least, and if it does not prove beneficial to
the state the next legislature can return to
the old order of things.
SIN the matter of state board of equal
izatiOn," continued the senator, "we are
confronted with different condition of
affairs than exists in any other state of
which have knowledge. am not aware
of any state that has q state board of
ship form of government. 1t is a very
diticnlt matter for our board of equaliza-
ton under a county form of government
such as obtains here, where the county
assessor has to cover territory hundred
times more extensive than is covered by
the township assessor Of the older and
more thickly settled states, to arrive at q
fair and equitable valuation of property in
the different counties. To obviate the
difficulty as much as possible the COM
mittee is considering tho advisability of
having the state board of equalization
meet in March of each year and fix the
value at which the different county asses
sors shall assess property throughout the
to classify real and personal property in
such way as to meet the different con-
ditions which obtain in the several
counties.
"The committee is considering radical
change in the present system of collection
of delinquent taxes. The Pennsylvania
law, in this respect, is the best that We
have found, and an effort will be made to
count of per cent. shall be allowed on all
taxes paid before the date of delinquency,
thus putting q premium upon prompt
payment. After taxes have become de-
linquent penalty Of 10 per cent is added
and the taxes bear interest at the rate of
10 to 20 per cent. It becomes the duty of
the treasurer to file list of property upon
county auditor, and thereupon the taxes,
penalty and interest become q lien upon
the property, These delinquent taxes can
be paid at any time within five years, at
the end of which time it becomes the
duty OF the prosecuting attorney
to commence action against the property
and notice of such action is published and
the owner, If known, served with sum-
mons to appear and show cause why the
property should not be sold to satisfy the
tax lien. At the subsequent tax sale deed
is given in fee simple, and these tax deeds
are considered in that state the best title
that one can hold The committee be-
lieves that by the adoption of this system a
larger proportion of taxes will be paid than
at present, and it will be much more eco
nomical for the counties than under the
present law.
Chairman Plummer, of the House CON-
mittee, has suggested the advisability of
having all steamers plying wholly or in
part In the waters of the state assessed by
the state board of equalization and the
taxes divided amongst the counties where
these steamers make their headquarters
and receive police and other protection, in
much the same manner as is provided for
the assessment of rolling stock Of rail-
roads My impression is that this will do
away with the injustice of assessing this
class Of property where registered or the
principal Office Of which may be located in
some county where the taxes are unusually
light and at some port where steamers
seldom or never enter. There is no Justice
in such steamers receiving police, fire and
other protection from cities like Seattle,
Tacoma, Port Townsend and of Belling-
ham Bay without paying at least some
proportion of the cost of maintenance Of
such protection.
THAT section Of the law providing for
the taxation of insurance companies,
passed by the last legislature, is retained
in both of the bills now being considered
by the committee. This provides for q
per cent. tax upon the gross amount of
premiums received by all companies doing
business in the state. While some men,
bers OF the committee are inclined to allow
this section to stand there is no doubt