Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1899-09-22
THE ASSESSMENT LAW.
One of the Alleged Promises of the
Republican Party.
What it Cost and How it Has Increased
Taxation.
It's Inequalities and Exemptions of
Wealth.
Published by authority of the Marylan
Democratic Editors Association.)

One OF its promises was new assessment,
and law authorizing one was passed at the
session OF the General Assembly in 1896
The demand Tor new assessment law arose
from the exemptions Of wealth and Unequal
tiles in assessment The people wanted all
classes of property TO be taxed alike at
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 provides. They believed
that an assessment law that would bring
all classes of property upon the assessment
books and tax all alike, tax rates could be
so reduced that the burden of government
would be 80 light as not TO embarrass any.
To formulate an entirely fair and equita.
BILE assessment law was matter beset with
difficulties The law which was passed by
the Legislature in 1896 did not meet the
public demand, and the supplemental bills,
demanded by Gov. Lowndes at the com
mand OF corporate influences As a condition
precedent to his signing the act, made it
worse Instead OF making wealth pay Its
just proportion of the public burden the law
deliberately exempts it. Under one of the
supplementary acts bonds, certificates OF in
debtedness 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, on the 300 for
county, municipal and city purposes. Balti-
more city gets the whole thirty cents, but,
under decision of the Court of Appeals,
every county has TO give TO each incorpor-
ated 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
revenue for county purposes. And another
class oil property, such as stock, upon which
No dtnld AaA
year, was exempted from any taxation at
all. Under this provision it was an easy
matter for companies and corporations TO
pass no dividends in order that their stock
could escape taxation. Farms are taxed
whether they yield revenue or not, and so
are tenantless houses, stores and offices.
Farming lands, town and city property are
assessed at their cash value, and the assessors
adhered pretty closely to the valuation OF
1876, when there had been great deprecia-
ton by 1896. 1t is said instructions were
given to assessors to keep up the basis, as
consd erab BILE reduction and a consequent
increase of the tax rate would seriously re.
act upon the Republican party. While
bonds, certificates of Indebtedness and evi.
deDces of debt pay but 80 cents on the 800
of their market value, real property is taxed
at 81 90 In Baltimore city and from as cents
in Carroll, which has the lowest county tax
rate, to $l.12t 10 Somerset, which has the
highest, and six of the counties have rate
of $1.00 or more.
Mortgages are favOrte security in this
State, and many millions of dollars are in
vested in them. One of the demands of the
people was that mortgages should be taxed.
The Republican Legislature of 1896 inserted
q provision for taxing them in the assess
ment law, section A LAG A.
Money invested in mortgages is mostly
surplus moneY-money not needed in &C.
tual business or in running farm 1t is
essentially wealth, and yet the legislature
was very considerate in taxing wealth in.
vested in mortgages. Holders are required
to pay 3 per cent. of the gross income, per
cent. going to the State and per cent for
county purposes where the holders reside
A $1,000 mortgage, bearing 6 per cent,
would yield "a S0-$1.20 going to the State,
and $500 to the county where the holder
resides.
This mortgage tax is another discrimina.
ton in favor of wealth as patent as in the
| discrimination in favor of bonds.
The income from $4,000 mortgage
would yield tax of $48 in Baltimore or in
any county in the State The tax on a
$4,000 house in Baltimore would be 5000
for city purposes, and for State purposes.
$1775, or total OF $217 rs. This is a dis
elimination in favor of the holder OF the
mortgage of $169.75 in taxes.
When there is no income from mort.
gage no taxes are paid, but taxes have to be
paid upon the more than $1,000 tenantess
buildings in Baltimore. And the same is
true of tenantless houses, stores and offices
in the towns and other cities of the State.
A $1,000 mortgage will pay tax, pro.
vided there is six percent. income, of
$3.50. A 81 900 farm pays county and
State tax in Carroll of $6274, and a much
higher rate In every other county, reaching
the highest point in Somerset, where the tax
is $11.25.
Not only is the law discriminating in its
provisions in favor of wealth, but it is full
OF antiquities and is differently construed
throughout the State. The Democrats of
the Senate, particularly, made a strong effort
TO have fair and equitable law, but they
were outvoted and had to sanction the act
and the supplementary bills or be placed in
the attitude of having accomplished the de.
feat OF an assessment law.
The law is failure entirely in meeting
public expectation. The assessors seem to
have nursed their jobs, as the assessment
cost fully sixty per cent. more than the as.
sessment of 1876. The cost in few coun.
ties will illustrate this; The cost of assess.
ment in Dorchester county in 1876 was
$500. The cost in 1896 was $1,000. In
Washington county in 1875 the cost was
81 1886 25, and in 1895 $40, 622 81. In Prince
Georges county in 1875 1851 SO and in
1896 $12,610 GO. In Wicomco $4,000 in
1876 and $4,943. 81 in 1896. In Carroll In
1876 $SO11, in 1896 nearly $4,000. In Al
legany in 1876 5000, in 1896 81, 1888 81.
The assessment was stretched out over
seven months in the counties and much
longer in the city of Baltimore The new
basis was first used in 1897, and the very
next year over $4,OOO,0OO had been taken
from the books. The table below will show
the basis in 1896 and 1885, 1t will be seen
that the increase was about 5000 900,
about all of it in Baltimore city
Assessed. Value of Real and Personal
Property.
1896 1893
Allegany...... 1647S, 4S1 .......$ 16. 236. 750
Anne Arundel l0,S24 yS17....,. II ,969 427
Baltimore City 1903 1893 ,275 .,.... 33l '5l4 O39
BALTIMORE. H7l3,S74....... 67541 1874
SalVert. 204l620 ...... 2,1S7,006
| Oaronne......... 4,426, 3S9....... AGES 1856