Delaware gazette and state journal., 1897-07-15
GROUND RENTS.
A Question AS To Whether They Are Sub
ject to Taxation as Investments.

Question as To Whether They Are Sub
jeet to Taxation as Investments.
"a new question has arisen concern
ing the provisions of the act passed at
the last session of the Legislature to
tax investments for State and county
purposes, remarked prominent
member of the New Castle county
bar to reporter of The Gazette
on Friday evening. Continuing he
said :"A citizen of Wilmington who
owns property here was in my Office to-
day and said that in his opinion ground
rents, which used to be SO popular here
as matter of investment, would not
come under the provision of the law in
regard to special taxation, and he asked
my opinion on tho matter. !"
The attorney stated that while he
had not had time to make an investi-
cation sufficient to enable him to ex-
press a definite opinion, it was just pos.
sible that the law could be SO con-
Htrued that ground rents would not be
affected.
With him it was a question as TO
whether ground rents could be included
as certificates of Indebtedness, or
whether it would be necessary in order
to impose the special tax to have them
specifically mentioned in the act He
is now wrestling with the problem and
hopes to be able to give his client some
definite information in few days.
Concerning the kinds of Investments
subject to taxation the new law reads
as follows;
Section /. That in addition to the real and
personal property now liable to be taxed
under existing laws, it shall be the duty of
the assessor of the various hundreds or
assessment districts in this State to assess at
three-fourths their actual cash value all
investments paving interest or yielding an
income and which are not now taxed for
either State or county purposes, or exempted
by this Act, and the same shall be taxed for
all State and county purposes.
Section 9. Under the head investments"
the following kinds are included; All bonds
| for the payment of money, mortgages.
stocks OF every kind, not herein expressly
| excepted all judgments. recognizances and
DEGREES for the payment of money; all judg-
ment notes and certificates of Indebtedness.
| (except such as are given in good faith for
goods sold and delivered, for wages and such
| Judgment note or other evidence Of indebt-
| edness, as may be given for short periods in
| the course of business and not used or
| intended as investments); all alienation
| bonds bearing interest," or when the interest
| is included in the body thereof. all interest
bearing loans to any person, firm. company,
| limited partnership, bank, banking assoca-
| tion and corporation of whatsoever kind,
whether doing business in this State or else
| where. Payment of interest in advance or
| adding il to the principal shall in no ease
exempt the lender or creditor from the pay
ment of the tax. The following are ex-
| cepted and excluded from the operation of
| this Act All loans and evidence of indebt-
edness of the United States, of the, State of
Delaware or any of the counties thereof; of
| religious or benevolent associations whose
| rpnl pQt is hv Inv aXamnt and nf Snnh
other securities as are now exempt by ex-
| press provisions of law; all loans which are
made to local manufacturing companies,
| hypothecated upon the real estate of such
companies. when their real estate is ex-
| nressly exempt by law: all stocks. bonds
and mortgages in educational, charitable.
benevolent or cemetery institutions, whether
incorporated or not, and all investments by
savings banks and shares of building and
loan associations and investments made by
| them
The attorneys client also inquired
about the law in regard to ground rent
ing, there being an opinion among
some that it was prohibited, probably by
an old statute, as some other States
have laws against it, and the custom,
which was once SO popular, is scarcely
known here. The attorney is also look
lug into this matter in connection with
the Investment tax question mentioned.
Should there be no law against
ground renting and should ground rents
be exempt from the new law, there is
an impression that some moneyed men
contemplate returning to the old Gus.
ON, as ground rents are considered
first class investments on account of
their safety. In recent years they have
been supplanted by mortgages.
In searching the records old ground
rents, dating back in the eos are
occasionally found, but such flaws are
usually easily adjusted. Old Trinity
Church (Old Swedes) held number of
ground rents. which are still on record
as did also the late David O. Wilson,
Eli and Samuel Hiles and others.