Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1899-09-23
Assessment Law.
One of the Alleged Promises oi
the Republican Party.
INCREASED TAXATION.
Its inequalities and Exemptions
of Wealth.

ment, ana Il law authorizing
one was passed at the session
of the General Assembly in
$40. The demand for Il new
assessment law arose from the
exemptions of wealth and inc
qualities in assessment. The
people wanted all classes of
property to be taxed alike at "A
uniform rate. They wanted all
to contribute to the public ex-
pense 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 he
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 diff
culties. The law which was
passed by the Legislature in
$50 did not meet the public
demand, and the supplemental
bills, demanded by Governor
Lowndes at the command of
corporate influences as a CON
dition precedent to his signing
the act, made il 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
deptedness and evidences of
debt are assessed at the market
value and taxed at the regular
rate for state purposes and at
thirty cents. and no more, on the
800 for county, municipal and
city purposes. Baltimore city
gets the whole thirty cents, but,
under a decision of the Court of
Appeals, every county has to
give TO each incorporated 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 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 com
panies and corporations to pass
no dividends in order that their
stock could escape taxation.
Farms are taxed whether they
yield a revenue or not, and so
are tenantless houses. stores
and offices. Farming lands and
town and city property is
assessed at their cash value.
and the assessors adhered pretty
closely to The valuation of 1876,
when there had been great
depreciation by 1896. 1t is said
instructions were given to
assessors To keep up the basis.
as a considerable reduction and
a consequent increase of the
tax would seriously react upon
the Republican party. While
bonds, certificates of indebted
ness and evidences of debt pay
but 30 cents on the 500 of their
market value, real property is
taxed at $500 in Baltimore city
and from IS cents in Carroll.
which has the lowest tax rate.
to Sl.l24 in Somerset. which
has the highest. and six of the
counties have rate of Sl.0O or
more.
Mortgages are a favorite Sc
curity in this State. and many
millions of dollars are invested
in them. One of the demands
of the people was that mortga-
ges should be taxed. The Re-
publican Legislature of 1896 in
serted a provision for taxing
them in the assessment law.
section l4G \.
Money invested in mortgages
is mostly surplus money
money not needed in actual
business or in running a farm.
1t is essentially wealth. and yet
the Legislature was very con
slderate in taxing wealth in
vested in mortgages. Holders
are required to pay eight per
cent. of the gross income. two
per cent. going TO the State and
six per cent. for county pur-
poses where the holders reside.
\ 81 GOO mortgage. bearing six
per cent. would yield $3.50
Sl.20 going to the State. and
$500 to the county where the
holder resides.
This mortgage tax is another
discrimination i'm favor of
wealth as patent as in the dis
elimination in favor of bonds.
The income from 81, 900
mortgage would yield a tax of
SIS III Baltimore or in any coun-
in the State. The tax on
$1,000 house in Baltimore
would be 5000 for city purposes.
and for State purposes, 1915 or
a total of SPITE. This is a
discrimination in favor of the
holder of the mortgage of 5lG9.-
IS in taxes.
When there is no income
from mortgage no taxes are
paid, but taxes have to be paid
upon the more than I 900 tenant
less buildings in Baltimore.
And the same is true of tenant
less houses, stores. and offices
in the towns and other cities of
the State.
\ 81 900 mortgage will pay IA
tax, provided there is Il siX-pe
cent. income, of $50. \ 81 900
farm pays IA county and State
tax in Carroll of %. 27l. and IA
much higher rate in every other
county, reaching the highest
point in Somerset, where the
tax is 3ll.25.
Not only is the law discrimi-