The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-23
MORTGAGES TAXABLE
The Bill Exempting Them Is
Unconstitutional.
SUCH IS THE OPINION REM
DERED BY BISHOP.
Bill Attempts to Exempt Property
From Taxation Which Is Clearly
Taxable Under Section 2, Article
Is, of the Constitution.

Acknowledgement Bishop yesterday
rendered the following opinion relative
to the constitutionality of house bill
No. 20. by Gibson. to exempt mort
cages from taxation:
Office of Attorney General.
Salt Lake City. Feb. IS.
To the Honorable Speaker and mem
bers of the House of Representa-
tives, Salt Lake City. Utah.
Ladies and Gentlemen:-I beg to &C
knowledge receipt of your communica-
ton of recent date enclosing house bill
No. 20, by Mr. Gibson. requesting an
opinion from this office as to its con-
stitutionality.
The effect of the bill would seem TO
be to amend section 3 of the revenue
act" so as TO place mortgages and deeds
of trust and notes secured thereby on
property situate within this state
among the exemptions from taxation.
Section OF article IS of the constitu-
ton provides: 'All property in the
state, not exempt under the laws of the
United States or under this constitu-
ton, shall be taxed"
The word property as used in this
article includes moneys. credits. bonds.
stocks, franchises and all matters and
capable of private ownership.
Section 20 of the declaration of
rights, article 1, provides that the pro-
visions of the constitution are man
datOry and prohibitory unless by ex-
press words they are declared to be
otherwise.
Section u of article 10 of the consti-
tuition provides: Nothing in this con-
stitution shall be construed to prevent
tel
tax, or a tax based on income, occnpa-
ton, licenses, franchises or mortgages"
1t is plain from section II above re-
ferred TO. that the constitutional con-
vention intended that all manner and
kinds of property should be taxed, eX-
cept such as was exempt by the ex-
press provisions of the constitution or
the laws of the United States. Mort
cages and other securities for indebted
ness are recognized by the law and
claSSed as personal property.
Section IL above referred TO is the
only provision OF the constitution upon
which it could be cOntended that the
power TO tax mortgages was vested in
the legislature; but giving this section
as broad construction as its language
will admit. and considering ii in con-
nection with the provisi4ns of section
supra, il cannot, in my opinion.
lllOQnS lIlS ClCCl VI SdlQ SOULFUL IL
is at most. an attempt by the makers
of the constitution to place legislative
construction upon these provisions of
the constitution. But it falls far short
of being sufficiently definite and ex-
plicit to modify the mandatory pro-
visions of said section 3
1t will be further noticed that section
8 of this article provides that certain
property shall be exempt from taxa
ton, but there is nothing in that sec
ton nor in that article to indicate any
intent to exempt mortgages from taxa
ton
l am therefore of opinion that the
bill under consideration is uncOnstitu-
tional, in that it attempts to exempt
property from taxation which is clear
ly taxable under section of article
13 of the constitution and which does
not come within the exemptions provid-
ed for in section of said article.
/ have the honor to be,
Very respectfully yours.
a. c. BISHOP,
ACKNOWLEDGEMENT.