Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1896-04-03
The New Assessment Law.


Baltimore city, calls attention TO the more
important points in the new assessment bill
as it finally passed the Legislature. He
calls attention TO the fact that the law went
into effect on Monday night last, and also
that by section 146D of the law an addition
to the words of the oath referring to the con
sideration heretofore taken by mortgages
or officers of corporate associations making
loans on mortgage.
BONDS AND STOCKS.
First-Bonds and stocks not exempt by
the laws OF this State are assumed and taxed
according to plan devised and suggested
by Mr.. Il. f. Newcomer, OF Baltimore. All
bonds and stocks are assessed at their full
market value and upon that valuation there
is TO be paid the full State tax, W hatever it
may be, (at present 179 CENTS Jon the hun.
dred dollars and an additional tax OF 30 cts.
on the hundred dollars for local purposes.
The tax for local purposes is TO be uniform
over the State, so that the resident of the
city will not have to pay any greater tax
upon his bonds than the resident of the
counties.
Under this supplemental bill, to illustrate
its operation, a bond assessed at s. 900 will
pay State tax of 81 TT and an additional
tax OF SO for city or county purposes, as the
case may be. The total tax, therefore, on a
3 900 bond, valued at par, will be "a TIL.
The great Importance OF the Newcomer
amendment and its difference from the seal
ing system of the original bill as passed will
be shown by calculation OF the tax upon
81 900 six per cent. bond, for instance, which
would have been exacted by that bill. The
receipts into the State treasury from this
source will be unchanged, while in the city
oil Baltimore the receipts from stock taxa
ton will be less than one six as much as at
present, supposing the volume on the tax
books is as great
Ii 1t were per cent. bond, it would be
assessed at $500 Upon this the State tax of
III cents on the 500 would have been levied,
making 8S4 cents, and 10 Baltimore the full
city rate OF say 81 05 would have been levied
making $40 %, total $l1 49, or over IS per
cent. OF the interest. But the 6 per cent.
bond would have cost the investor about
$1,000, aud so the State and city would have
taken from the investor nearly one fourth
or 25 per cent OF his income
In the new assessment law, as modified by
the supplemental bill, the same rule Of taxa
ton applied to bonds is also applied TO stocks.
Under the existing law the tax commissioner
assesses stocks as near as he can at the cash
or market value, and upon that valuation
the foil State and local tax rate is levied
TUNNELS AND BRIDGES.
Second-The supplemental bill restores to
the new assessment the method OF valuing
tunnels, which now prevails and his pre-.
vailed since 1876. 1t IS that no extra assess.
ment shall be laid and no extra tax shall
be levied upon tunnels and bridges over
streams forming part of the roadbed of any
railroad or turnpike, it being the meaning
that such bridge or tunnel shall be valued
at the same rate as any equal portion of such
railroad or turnpike.
This provision is, OF course, intended TO
apply especially to the three great tunnels
under Baltimore city and which, under the
main bill as passed, would have been sub
ject to assessments at their cost.
MORTGAGE CLAUSE
Third-The supplemental bill also per
mits corporations executing mortgages to Sc
cure bonds to covenant to pay the tax on
those bonds. The mortgage taxing clause
OF the assessment bill prohibits morsgagors
from making such covenants to pay taxes.
But it was feared that corporations might
be unable to float or market bonds upon
which the holders would have to pay the
tax. and so this precautionary measure was
passed.
BUILDING ASSOCIATIONS.
Fourth-The fourth point covered by the
supplemental bills is that exempting the
shares OF building associations incorporated
in Maryland and doing business solely there
in to the extent such shares represent mort.
cages on property wholly within the State
and executed by members of the said asso
Citations. 1t is well known that the shares
of building associations are not usually paid
up, but the amount due on them is secured
by the mortgage, and 30 the mortgage and
the share usually represents the same prop
erty
RAILROAD ROLLING STOCK.
Fifth--The remaining feature of the sup
Elemental bills is that which is to tax the
rolling stock of railroad companies in the
counties and cities through which the road
passes, dividing the tax according to the
mileage of the road in such cities or coun-
ties, This would appear to deprive the city
OF Baltimore Of any considerable portion OF
the tax on rolling stock, as the mileage in the
city is small. 1t, Of course, will give the
roads the advantage of the lower rate Of
taxation prevailing in the counties. Under
the main assessment bill the rolling stock is
taxed at the situs OF the main Off ee OF the
COMPANY ii in the State.