St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-13
MINNESOTA TAX Law
Everett P. Wheeler, Of New
York, Advocates Moditleaa=
ton Thereof.
WHICH HE IS QUITE SURE
Will Have a Tendency to At
tract Investments Upon
Mortgage
AND BECOME BENEFICIAL
To the Community at LARGE
He Represents Interests
in st. Paul.
AND BECOME BENEFICIAL

Everett P. Wheeler, Of New York,
has written to II. S. Fairchild, of this
city, letter Oh the subject of amend
ment to the Minnesota tax laws, which
will be found quite interesting. In
sending the letter to the GLOBE Mr..
Fairchild says: Surely the eXtOrtion
of 20 per cent ana 5 per cent penalties,
in addition to the heavy interest Of 90
per cent from the unfortunate, should
be abolished. No man will delay pay
ment of taxes bearing 20 per cent inter
est longer than is absolutely necessary,
and If at the time unable, the adding of
those penalties looks much like robbery
of the helpless"
Mr.. Wheeler's letter to Mr.. Fairchild
follows:
1Permit me to call your attention to
the present condition of the tax laws of
the state Of Minnesota, so far as they
relate TO property in cities. represent
considerable interests i'll st. Paul and
Minneapolis, aud have been for some
time in the practice of investing there
money for clients and others upon bond
and mortgage. The present depression
in the market for real estate reminds
me strongly of the condition of that
market in New York City in 1874 and
1875, after the panic Of 1878.
At that time i'll this city taxes were
payable in November. If not paid by
the 30th of that month penalty Of
l per cent was added; If not paid by
the 18th another l per cent was
added; and il not paid during Deem
Der interest was computed at the rate of
II per cent from the time the taxes were
confirmed. This was followed by an
early sale for non.payment. This was
great burden upon the property
owners. and when the financial crisis
came IN 1873, and owners of real estate
were very much embarrassed, they
united in an application to the legisla-
ture to modify the tax laws. This was
done. There is now but one penalty of
per cent, and the interest is at the rate
of Z per cent instead Of Y.
In times of great financial difficulty it
is very easy for city to Borrow money
upon revenue bonds to meet any def
cheney caused by the nom payment of
taxes, and the relief to property owners
is very great. Formerly the city of
New York paid per cent for money
which it borrowed. 1t now is able to
borrow at 8. | suppose that st. Paul
and Minneapolis can borrow at the same
rate or Whereabouts.
The condition Of all your cities in
Minnesota has changed so greatly since
your tax laws were passed that should
think the many owners who are bur
dened by the present system would be
GLAD to unite in an application to the
legislature for mitigation OF the PEN
alties and postponement of the
sales. Such change would "be
attractive to Eastern capital.
am bound to say that in the pres
ent condition of your legislation as to
foreclosure and taxes, l could not ad-
wise a client to invest any money on
mortgage in your state. Practically the
mortgagor has the right to eighteen
months possession, without paying
either interest or taxes. When the
mOrtgagec comes into possession, he
finds heavy burden of taxes upon the
property, with penalties and accumu-
lated interest at a high rate, which he
must pay Immediately or run the risk
of losing the property by tax sale. The
system of taxation is SO onerous to
mortgage or the owner. that 1t is, in
my Judgment. a most substantial and
serious objection to real estate invest
mentS in your state.
Your legislature meets this winter.
1t seems to me that a change in your
tax laws by reducing the rate of m
terest to z per cent. and by authorizing
the financial officer 6f cities to postpone
the sales of land for non.payment of
taxes. would be great benefit to real
estate owners, would tend to attract
investments upon mortgages. and would
thus be beneficial to the whole com-
munity.
Imay add that our experience in New
York under the existing law has been
that taxes are paid as promptly as they
were under the old system. Yours
truly. EVERETT P. WHEELER,