Telegram-herald., 1891-02-11
MORTGAGE ETAAATION
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the acton taken by the JOINT
committee OF the ". NJ. +. {. and The
the q. Y. y. IL :. IN asking the Board
~ Supervisors 10 grant the use al q
room IN the new court house for sad
SOCIETIES. The board considered the re-
quest aud referred il 10 ths proper
committee for action.
The regular question for debate was
then introduoed'
Resolved, That the Wesi Michigan
Farmers Club ask the Legislature 10
amend the law for the taxauon Of
mortgages So as 10 exempt the real
estate owned by mortgages 10 tie ex-
tent Of the assessment of the mortgage.
The committee towhieh this question
was previously referred, reported
through Mr.. ;. $. Bailey as follows.
at law can be framed that VIII siand
the test OF the courts taxing ali mort
cages the same as real estate, according
TO value, whether such mortgages are
owned by residents or non-residents. OF
corporations IN or ont OF the state,
then ne would recommend an amend
ment 10 the present law" This report
was then discussed and nearly ali the
members present expressed their opln-
ION concerning il. The discussion was
opened by the president.
President Linderman-l think ex-
emption would work some injustice.
If 100000 of mortgages on land IN
Michigan were held in New York. the
property IN Michigan would not bear
lis share of taxation. | would have the
land owner pay all tax and have the
law so amended that las tax receipt
should be received as so much interest
paid on the mortgage.
L. L. Knapp-lf such were the case
Eastern capitalists would send their
money elsewhere and Michigan manu-
featuring interests would be crippled.
:. NJ. Pearsall-I do not know what is
best. The tax must be paid by the
man that owns the money, and 1t is
often difficult 10 ascertain the exact
amount due On mortgages, and often
they are held in trust only.
Mr.. Linderaan-Only two persons
usually know the amount OF indebted
ness. The LAID owner may say there
Is Il mortgage of $1,000 on his farm,
when really the half has been paid,
taking such a course 10 diminish hIs
tax.
W. III. Johnsop-I doubt the justice
of letting people como from other
states with money TO loan, and then let
them escape paying their share OF the
State expenses.
Robert Alward-There is an injustice
in taxing mortgages. | buy farm for
SS 900 and give n mortgage for $500;
now if both are taxed for $500 there
is an unjust imitation OF value. In the
law of 1sSs taxing mortgages there was
great difficulty in ascertainlng the
lust value of incumbrances. | do not
think taxing mortgages will raise the
rate of interest on loans. Would not a
law passed to tax mortgages become re-
troactive and therefore unlawful Our
tax law requires man 10 pay taxes on
property he owns here as well as money
loaned elsewhere.
Mr.. Hurd-I came here 10 learn
something. Now If 4 man owns cattle
in another state he must pay taxes IN
the state where the property is owned
and why not the same with mort
gage?
Mr.. Burman-Onc point made-inl-
pairing obligation of contracts-legisla.
ton would not do that ~ levying
taxes. Taxes can hardly he collected
where there is no property TO get hold
Of. The Indebtedness on farm should
reduce the valuation = corresponding
amount.
y. L. Smith-Are the people OF
Michigan to legislate for their own IN
| terests or for the interest OF people IN
other states? Now il the paving Il tax
can be included in the rental of prop
| erty, cannot the same rule be applied
to mortgaged property. A few years
ago everybody wanted bonds because
| they were exempted from taxation.
There must have been law then, and
there may he now.
| s. :. Bailey am not afraid of
money being driven from the state by
| taxing securities. We nave good men
who borrow money and money will
como where II is sale. DO the street
| railways pay any tax DO the banks
| all pay fair share2
Mr.. Award Would you have the
| borrower or the lender pay the taxes,
| Mr.. Bailey would have the prop
| erty of whatever kind pay the tax.
Mr.. Alward-If | borrow money IN
Grand Rapids and improve my farm IN
Ottawa county. by the present law the
tax on the debt will he paid here while
| the benefit has been conferred else.
| where.
4. L. Knapp-In New York the rail.
ways were assessed IN the town where
they were.
:. :. Baiiey-MInes m the Tppel
Peninsula, some Of them pay absolute
| ly no tax At ali and mines not worked
pay no tax. though they may he vortt
| millions: but II own Wild land
Just beside the mine, my land "a as.
sessed at full value. while the mine y
assessed not al its value bot 50 Wild
| land.
Mr.. Alvsrd-F~ery new tar Law has
| only been worse than those existing be
| fore. Some of the tar collected now
costs more than rs value.
A resolution vas passed BY the ciul
| pledginz the cooperation Of tbst ~,
| cIety 70 the members Of the state Legs
| ssture ia any effort they may Hssks 10
| ward rernedving the present tar iaw
The ci8b adjourned - meet the seoond
Tuesday ia March IN the s1psrvJsors
room.
PROMPT reiief IN sick bsadsche, dir