The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1896-05-09
THE MORTGAGE INCOME TAX
ABORTION.

Our readers will remember that the
WING took decided ground for reasons
which need not now be repeated, against
the imposition of a mortgage tax, when the
proposition was made to incorporate it in
the assessment bill, as finally passed by
the Legislature.
Now it is plain, that the advocates of
this tax recognized the fact, that it was a
double tax, and an additional burden upon
the borrower, and for that reason the Leg
islature exempted from the mortgage
income tax, all mortgages heretofore exc
cuted containing covenant to pay such
tax, and made null and void all contracts
and covenants hereafter to pay it.
Section 146, &C" of the new assessment
act makes this exemption in the following
language:
"All covenants contained in any mort
gage executed after the passage of this act,
for the payment by the mortgagOr of any
or all taxes, assessments, public dues or
charges levied or to be levied by law on the
mortgage debt created, or secured by such
mortgage Or on the interest covenanted to
be paid, are hereby declared null and void,
and if under the laws of the State, owing
to the covenants contained in any mortgage
executed before the passage of this act, the
mortgagor shall be compelled to pay the
tax hereby levied under the provision of
section LAG a, he shall upon payment Of
the same be entitled to have the same
deducted from the tax or taxes on the real
estate or personal property covered by said
mortgage
Now the county revenue to be derived
from all unreleased mortgages containing
the covenant to pay, and which the mort
gagor can obtain his rebate on from the
County Commissioners must be practically
nothing.
The income tax of eight per cent. will be
levied upon the mortgage, he will collect
it from the mortgagor who in turn will
get that amount deducted in the Commits
sioners' Office from the tax on the real
estate covered by said mortgage.
Where then is there any increase from
this source in the assessible basis of the
county?
There is practically none, since the
amount of income tax collected from one
man the mortgage is deducted from the
tax bill of another man the mortgagor)
1t is simply vain process of robbing
Peter to pay Paul, while there is prac-
tically no increase of tax revenue to the
county, the amount of tax simply being
taken out Of the pocket Of one man, to be
put back into the pocket of another.
And with no material gain in the tax
revenue of the county, consider the expense
to which the taxpayers of the county are to
be subject to effect this Peter and Paul
system Of tax revenue.
It's a big job to make transcript OF all
the unreleased mortgages on the records OF
the clerks Office, and the clerk must be
paid for furnishing such transcript to the
County Commissioners. He is not reason
ably to be expected to do this work for
nothing, and the County Commissioners
will pay his bill.
This expense to the taxpayers the new
assessment bill provides for in Section
LAG, E:
GAS soon as possible after the passage of
this act it shall be the duty OF the Clerks of
the Circuit Courts for the several counties
of this State, and the Clerk of the Superior
Court of Baltimore city to render to the
Boards of County Commissioners of the
several counties and the Appeal Tax Court
OF Baltimore city, respectively, com.
plete list of all unreleased mortgages of
record in their offices, which said list
shall give the names of the mortgage and
mortgagor, the location of the property
covered by the mortgage, the date OF
its execution the time of expiration,
the amount of the mortgage and the
rate of interest covenanted to be paid,
and thereafter said clerk shall render
as above required, on the first day OF each
month, complete list of all mortgages
recorded, released and assigned in their re-
spective offices during the last month, under
apenalty of $500 for their neglect to do SO, to
be recovered as other fines are now recov-
cred and said clerk shall be entitled to
compensation for such work, to be paid by
the county commissioners in the several
counties, and the Mayor and City Council
of Baltimore City as now allowed by law
for transcribing records
Now as it is certain that the county
will get nothing from the assessment of
old mortgages which contain the iron clad
covenant to pay the tax, and it is also certain,
that it will lose very considerable in the
expense incurred by the clerk in certifying
the mortgage lists to the county commits
ioners, where is the county to get any
revenue?