The Sully County watchman. (Clifton, Dakota [S.D.]) 1883-1894, 1893-02-24
FOR REVENUE.
Taxes Not to Be Reduced
Because of Any Mortgage
Incumbrance.
An Exhaustive Report of Great
And Especial Interest at
This Time.

t;cHdtoI Acu1euy, chairman or The
committee on revenue, has made a
report on the subject of deducting
mortgages from the assessed yalu-
alton of incumbered property, which,
claims the Sioux Falls Press, will
become a classic. 1t is the most
complete argument against the
proposition that has ever been seen
by the Press correspondent, who has
paid considerable attention to the
question officially, professionally and
personally. 1t is as follows:
The proposition embraced in said
bill to deduct the actual value of all
mortgages from the actual value of
all property incumbered Herewith,
for the purposes of assessment and
taxation, is one that has been pre-
sented for the consideration of this
and former legislatures so frequently
and in so many varying forms, that
your committee deem it proper to
state somewhat at length the
grounds on which are based the
recommendations herewith sub
mitted.
Section 2 of article II of the con-
stitution requires that "all taxes to
be raised in this state shall be
uniform on all real and personal
property, according to it's value in
money, to be ascertained by such
rules of appraisement and assessment
as may be prescribed by the legis-
lature by general law, so that every
person and corporation shall pay a
tax in proportion to his, her or it's
property"
The Legislature of 1891 provided in
session IS of chapter IA, session laws
of 1891, that "any person who is
required to list credits either for
himself or any other person, firm or
corporation, may deduct from the
gross amount thereof all bonafide
Indebtedness of himself or of any
person, firm or corporation.' And in
subdivision of said section it is
further provided "that any person,
firm or corporation in making up tn E
amount of personal property required
to be listed for himself, company OF
corporation, be allowed to deduct
from the gross amount thereof any
Indebtedness of himself, company OF
corporation, if the same be held OF
| ounc6 wit n n tho cf ia
) Our supreme court in an opinion
rendered in response to question
put by the governor, decided that
this provision of the statute is
clearly in conflict with the above
provision of the constitution, in thai
it prescribes rule for assessment
which is not uniform on all propert,
according to it's value in money, bu
on the contrary requires the class O
property designated as credits ant
5 the personal property of debtors t.
be assessed at less rate than othe
: classes of personal property, or tn,
personal property of those who ar
= not in debt, and at less rate thar
real property.
The provision conta ned in this bill
q must be subject to the same constitu
/. tional objection, and in still create
d degree, for it proposes not to deduc
generally a persons indebtedness
j. from the amount of his assessment
f and thus make each one taxable OF
S the net amount of property he i
actually possessed of, but it single
a out, not one particular form Q
e indebtedness merely, but rather on
t particular form of collateral securit
y for Indebtedness, and proposes t
IS exempt from taxation an amount G
e property equal to the amount G
n such collateral security.
d This is certainly not that uniforr
e taxation of all real and persona
It property required by the constitl
a tion.
d But aside from any question of COZ
d stitutionality, it is the opinion c
y your committee that such la
would be very unjust in its practice
Is workings:
It We will suppose A, B and c ar
If neighbOrs, owning real and persona
l. property of the same kind, amour
% and value. A borrows a certain SUI
e Of money equal to half the value {
a this property, for which he gives h
pomissOry note and to secure pa,
d ment of the same executed
st mortgage upon his property.
II borrows the same amount, for whic
[e he gives his promissory note,
le secure payment of which he procur,
[e the Endorsement of responsib
is friend. c borrows the same amour
lg and being a man of good credit, /
IL gives his promissory note withol
e, other security. Now these three me
er own property Of exactly the san
kind and value, each as the othe
n -