The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1894-11-16
RELATIVE TO TAXES.

In another column appears letter
from T. w. Davenport, in which he at
tenpts to defend the present iniquitous
assessment law. This communication
was prompted by an article in recent is
sue, in which the GAZETTE proposed a
practical remedy for. existing evils in the
assessment and collection laws: Allow
ing the borrower or debtor to list with
the assessor a schedule of his indebted
ness, and when he pays the taxes on his
property, which is assessed at its true
cash value, he is to take from the sheriff
a receipt for the tax paid on each par
ticular item of Indebtedness, he then
turns the receipt over to the lenders or
creditors in part payment OF his debts.
In this way no property escapes taxation
and the debtor classes receive credit Or
exemption for their Indebtedness. The
reason for the adoption of the foregoing
plan is easily explained. Notes and ac-
counts for the purposes of taxation under
existing laws are considered personal
property. They are merely evidences of
debt and ought not to be taxed. They,
however, represent an interest in proper
ty to their face value, and their owners
ought to pay such portion of the tax as
is evidenced by them. For instance:
A. B. owns farm worth S., COO; the title
is in Kim and therefore it is assessed to
him at its cash Values, 900. c. D.,
however, holds mortgage against the
property for $2 900, and is therefore in
terested in it to that amount. If the
money has been invested in improve
ments, there is something tangible in the
way of buildings, etc, on the place,
which have been assessed; but if the
loan was part of the purchase price of
the farm it is still only worth $1,000, and
c. D. is still interested in it to the amount
of his mortgage. Under the present law,
property is supposed-a great deal of
emphasis on supposed-to be assessed at
its true value, while the creditor class is
supposed-a great deal more stress here
to list their notes and accounts for tax
alton. By this method, providing the
law is complied with, double taxation re-
suits. So long as such laws are in effect,
taxes will be evaded whenever possible.
In regard to deductions for indebted
ness, Mr.. Davenport seems to have
wrong impression. By the plan suggest
ed in the GAZETTE, there are to be no de-
ductions, except indirectly. Each tax
payer will list his property-exclusive of
notes and accounts-with the assessor, at
the same time furnishing him a schedule
of his creditors and amounts due each,
thus showing to what amount each is in
terested in his property, and upon what
sum they should pay taxes. Under ex.
isting laws, the assessor finds farmer
owning property valued at $4,000. He
is struggling under an indebtedness of
5000. This fact works upon the SYM
pathy of the assessor. He sees what an
injustice is worked upon the farmer if he
Is assessed at $40, 900. Although the pro-
perty is worth that sum, the farmer is
really worth but $1,000. Under these cir
cumstances the farmer will probably not
be assessed at over $1,000. This amount
is 1000 in excess of his equitable assess
ment, and yet s., 900 has escaped taxation.
No sane man will contend that this is
right, or that a remedy of such an evil is
among the impossibilities. The holder
I
partner in the ownership of the property
assessed, and he shou1d pay one-half of
the taxes. There can be no other logical
conclusion; and to determine who the
partners are must be left to the debtors,
in order to avoid the dishonest practices
of the creditor classes. One thing is GER
tain, the present assessment law will be
by the next Legislature, and in
its stead we want what has never been
had-an equitable tax law.