The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1897-06-05
The New Assessment Law.


Just proportion of public taxes under the new
assessment law was given in Baltimore few
dsys ago.
TIE Safe Deposit and Trust Company pre-
seiasd to the Appeal Tax Court sworn
sts.teJ3gut Of its securities They amounted
to nearly Sc, 900, 900. Under the law the tax
uI,o6 them is limited to 30 cents on the 500,
and the amount of taxes viii be $4,000
Were they taxed as real property is taxed. at
$500 on the 500, the tax would amount to
$4,000.
They were taxed as fully as other property
under the act of 1876. Last year The Safe
Deposit and Trust Company reported its
holdings of securities at about $4,000, 900.
Upon this amount they paid a tax of $40, 900.
This year, with holdings nearly three times
as great, the tax is less than half what it was
last year.
The same securities, if held in Westmin-
ster, Frederick, Annapolis or any other in
corporated town would be taxed nearly dou
bic.
In Baltimore they are taxed liz cents for
state purposes and 30 cents for city-a total
of $472 cents on the 500.
In Westminster Annapolis, Frederick and
other incorporated towns, they will be taxed
17a cents for state purposes, 30 cents for
county purposes and 30 cents for municipal
a total of 774 cents.
The 80 cents on the 500, and no more,
was said to be to make all holders equal, but
the equality turned out to be an advantage to
the dodgers of Baltimore.
The low rate of 30 cents on the 500 was
further advocated so that wealth and capital
would not leave the state, but would be brought
to light and subjected to taxation. How it
has done it is illustrated in the case of the
Safe Deposit and Trust Company. Under
the old law they reported 81, 600, 900 in secu-
rites and paid $40, 900 tax for city purposes.
Under the new law they reported about &c.
600, 900 in securities, and will pay about S1S,
900 a saving to the company of about $22,-
600, which must be made up by taxation upon
other property.
The tax on incomes from mortgages is
another alleged effort at equality in taxation.
So far as it affects mortgages executed prior
to the passage of the assessment law 1t might
as well have been omitted, for little mo tax
will be received. Under the covenants in
most mortgages the mortgagor will be re.
qured to pay the tax, and the mortgagor in
turn is allowed credit on his tax bill to the
amount of mortgage tax he has paid for the
mortgage. The state will get nothing.
If there be no income from mortgage
drawn since the new law was passed, by rea-
son of the mortgagor to pay interest, then no
tax is received by the failing state because
there is no income to tax.
If farmers crops should be a failure, by
reason of drought, storm or otherwise, and
there be no income from it scarcely, he has
to pay his taxes on the farm just the same
He even may have TO borrow money or give
notes for fertilizer and other bills-no matter,
he must pay taxes on his farm.
The state taxes incomes from mortgages at
s per cent. The income from $40, 900 mort
gage would be 5000, and the tax would be
$4s. The tax on a $4,000 farm would not
be less than SIS in any county in the state,
and in some would be considerably over 500.
The equality of the new assessment law is
here again illustrated.
The man who lives from tine income from
an investment of $4,000 in a mortgage pays
but S48 taxes.
The man who lives by tilling $4,000
farm pays not less than S75 in the lowest
taxed county.
This is mere glance at the assessmentlaw.
There are other features that need to be dis
closed, and the ADVOCATE will refer to them
later The manner of its passage, when Mr..
Cowen held up the Legislature through his
hold upon Lcwndes, will be told and the tax
dodger influence will be fully exposed.