The citizen. (Frederick City, Md.) 1895-1923, 1899-09-22
The Assessment Law
ONE OF THE ALLEGED
PROMISES OF THE RE-
PUBLICAN PARTY.
What it Cost and How it Has
Increased Taxation Its
Inequalities and Ex-
emptions Of Wealth.

fuInlleu PROMISES Olo VI 4'S
promises was a new assessment
and a law authorizing one was
passed at the session of the Gen
eral Assembly in 1896. The de-
mand for a new assessment law
arose from the exemptions of
wealth and inequalities in assess
ment. The people wanted all
classes of property to be taxed
alike at a uniform rate. They
wanted all TO contribute to the
public expense according to their
actual worth in real and personal
property. as the organic law pro-
vides. They believe that an as.
seSsment law that would bring all
classes of property upon the as
seSsment books and tax all alike,
tax rates could be so reduced that
the burden of government would
be so light as not to embarrass
any.
To formulate an entirely fair
and equitable assessment law was
a matter beset with difficulties.
The law which was passed by the
legislature in 1896 did not meet
the public demand, and the sup
Elemental bills, demanded by
Gov Lowndes at the command of
corporate influences as a condi-
tiou precedent to his signing the
act, made it worse. Instead of
making wealth pay its just pro-
portion of the public burden the
law deliberately exempts it. I'm
der one of the supplementary acts
bonds, certificates of indebted
hess and evidences of debt are as
SesSed at their market value and
taxed at the regular rate for State
purposes and at thirty cents, and
no mOre.o OH the 500 for county,
municipal and city purposes.
Baltimore City gets the whole
thirty cents, but, under a decis.
ion of the Court of Appeals, every
county has to give to each incor-
porated city or town in the county
one half of the tax collected on
this class of property in the city
or town, thus cutting off the rev
enue for county purposes. And
another class of property, such as
stock, upon which no dividend
was paid in the assessment year,
was exempted from any taxation
at all. Under this provision it
was an easy matter for companies
and corporations to pass divi-
dendS in order that their stock
could escape taxation. Farms
are taxed whether they yield a
revenue or not and so are tenant
less houses, stores and Offices.
Farming lands and town and city
property is assessed at their cash
value, and the assessed adhered
pretty closely to the valuation of
1876, when there had been a great
depreciation by 1896. 1t is said
instructions were given to asses
sors to keep up the basis, as a
considerable reduction and a con.
sequent increase of tax rate would
seriously react upon the Republic
can party. While bonds, certifi.
Gates of Indebtedness and eviden-
ces of debt pay but 30 cents on
the 500 of their market value,
real property is taxed at $500 in
Baltimore City and from 45 cents
in Carroll, which has the lowest
countysstax rate, to S1.129 in Som
erset, which has thea highest, and
six of the counties have a rate of
S1.00 or more.
Mortgages are favorite Secur.
ity in this State and many mil.
lions OF dollars are invested in
them. One of the demands OF
the people was that mortgages
should be taxed. The Republi.
can legislature of 1896 inserted a
provision for taxing them in the
assessment law, section LAG A.
Money invested in mortgages
is mostly surplus money-mone,
not needed i'll actual business OF
i'll running a farm. 1t is essen
TALLY wealth and yet the legisla
ture was very considerate in tax
ing wealth invested in mortgages
Holders are required to pay eight
per cent. of the gross income, two
per cent. going to the State anC
SIX per cent. for county purpose.
where the holders reside. A
81, 900 mortgage, bearing six PEI
cent, would yield S4.SO-S1.2 q
going to the State and So. go t,
the county where the holder re
sides.
This mortgage tax is anothe
discrimination in favor of wealth
as patent as in the discrimination
in favor Of bonds.
The income from a $40. OOI
mortgage would yield a tax o
S4S in Baltimore or in any count,