The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-04-14
THB NEW REVENUE LAW.
On Taxation OF Credits No Ded uet1on ID
Allowed From Assessed Valuation.
Spokane Review April II

Allowed From Assessed Valuation.
Spokane Review, April Il
Attorney General Jones has fled the follow
ing opinion In answer to . request from the
state auditor:
sPoKANE, Wash, April Io.-Hon. l. R. Grimes.
Olympia. wssh.-Dedr Sir: am in receipt OF
your com municstiou of the sth inst submitting
for my official opinion the following inquiry:
1888, exempt from taxation all mortgages, both
real and personal. or only such a. have been
given for the purchase Of real estatsr'
The provisions Of that act pertinent 70 this
inquiry are - follows:
''section 3-Personal property for the purposes
include - ell credits, including &C
counts, notes, bonds, certificates Of deposit.
judgments; chooses In action. and all
nature. duo or to become due. whether ..
cured OF NOT by mortgage or otherwise;
provided. that credits shall b e.
provided further that mortgages and ell credits
Tor the purchase Of real estate shall not b con.
eidered - property for the purpose Of this act"
The lack Of harmony IN the iorseoins pro
not the product OF Q single mind. The two pro.
visoe last quoted were manifestly added 70 the
foregoing section after the other provisions had
been drafted probably - compromise Con.
STRUNG them al together. however. think the
intention OF the legislature was 70 require
every resident OF this state to list part OF his
personal property all credits OF every kind,
whether secured BY mortgage or not except
such 90 arise from . sale Of real estate ana are
part OF the purchase price Of the sam& This
and ehss.el Inc evident purpo.. Of
the legislature WAS 10 prevent this
act receiving such construction as
40 such. no matter where the debt secured
thereby was owned The legislature ev.
IDENTITY desired to avoid the practice pur-
sued in some OF the states OF regarding the
mortgage a. the substance aud the debt a.
the incident and listing all mortgages found
recorded In the county irrespective OF the
fact that mortgage 10 found recorded will not
b. taken - evidence either OF the amount of the
debt or the situs OF the credit although the fact
that such mortgage IL found by the assessor
might furnish him With informs tion from viii "a
he would ascertain tho existence of q credit
which might otherwise escape Very respect
fully yours, w. C. JOINS.
Attorney General
To RcsfeO reporter the attorney general said
In explanation OF his opinion:
The sen ate was opposed 10 the taxation OF sny
credits Whatever, and ia the shape that this bill
passed that body tho assessor was not
When the bill went 10 the house that BODY
declined to concur In the senAts's view on this
question o, public policy. and amended the bill
by adding the words relating to credits in
which shape IL passed the mouse ana the
senate was asked TO concur. II, however,, de-
ciined to do SO. and conference
CCtuiuttto Wha appointed. when this
committee met the senate committee siren
uously opposed the taxation OF credits, aud the
majority OF the house committee streuuously
insisted hat all should be taxed. The result was
that the two provisions quoted were added to
that section. Taking the whole section together
there are manifest Inconsistencies difticult to
harmeniss. WIN the construction that l have
placed on this law. however, I thin. that all
parts OF the section can be given effect. ana 90
not see how any other construction could
give eject :" The several provisions
hs1ad hat
which was secured by mortgage
could be listed for taxation IL would be in di.
rect eonnict with the condition above quoted,
whether secured or not by mortgage or other
wise" IL would Also lead 10 positive absurd
lily For example: A loans sl,opo 10 n. whose
credit alone 10 sufficient security for
the note watch he gives, aud no norrg age or
other security Is taken for that lean. Such A
note would BE- clearly subject 10 taxation under
any construction that could TO paced upon
this law. Al the ssn,e time A loans an.
other $1,000 tn and requires the Sc
cGrify OF . mortgage. II the construc-
ton above suggested should be adopted,
the assessor would be required TO list the Irst
note for taxation, whlto TIE other one sin,tly
because tie payment o. IL was render tho
more certain oy tha seearity would escape No
poSsi be reason can lie suggested Tor suca a dls-
Lnc.loa."
Under the construction Of the law you have
gwen what viii Re The duty 0f the assessor
HIS duty will he 10 list Tor taxation al credits
owned by any resident Of the state, except such
as arise from the sale OF real estate ani a.e a
part OF the pUrcc ase price
How about deduction of iGdebiednss.f Can
q mal de1act Indebtedness rom The asses,ei
value Of bis propcFiyf
No This act provides ,ha; IN making un the
amount o. money on credits which any rsr.oo
Is required 10 list. he viii be eotslsi u ts1urt
ifota the gross amount thereof al debts in gooi
taliA owing oy him, CSC This VII. require him
Tn pay TAX or ali the tangible properly hs IA.
iTrss pec,ive Of its Indebtedness, ana II il aniy
taose " BOSE credits OF Iaoaey exceea their dsbls
thai viii he az c;ea.
The e. A. r. posts IN osegoa opened their
sneampmeai a. Feu5.elon on April II with