Mexico weekly ledger., 1900-10-25
AMENDMENT no. 5.
George Robertson Makes 9 Strong
Argument Against It-It Is
Against the Farmer and
Borrower Generally.

CONSTITUTION OF tnlS q 10 be fOteu
onat the November election, providing
in substance, that a mortgage, deed of
trust or other obligation by which a
debt is secured, shall for the purposes
Of taxation, be deemed and treated as
an interest in the property affected
thereby; that .'the value Of the prop
ertyh pledged shall be assessed, s'less
the value Of the security to the
owner thereof and the security
shall be assessed to the owner
OF it That is II A owns a farm
worth 5000 and borrows $1,000 upon
it from B, the $1,000 equity remaining
In it shall be assessed to him and he
shall pay the taxes upon 1t and the
mortgage owned by B shall be assess
ed to him and be shall pay the taxes
upon t. thereby theoretically assess.
ing the farm at its full value and in
this instance dividing the tax equally
between the owner of the farm and
the owner OF the mortgage.
By this proposed plan II may be un'
dertaken to assess the farm at its full
value compelling themortgagor TO pay
the tax upon his interest therein and
making the mortgage an interest in
the farm and compelling the ownel
Of it to pay opan the full value Of thu
mortgage,
OF course it is fair TO presume that
mortgaged property would be valued
upon terms fair and just and that thu
mortgaged farm would not be assessed
DhigecF IMAM herpmperty-Thst Is
il property is now assessed at abou'
one-third of its value the equity re
naming in A would be assessed a
one-third OF Its value and the mort
gage owned by B at one-third Of it
value.
1t is provided also that the interes
Of the owner Of the security as well a
that of the owner OF the propert
affected by the security shall be as
sessed on terms equally fair and Just
By this provision it is doubles
intended that the interest of tn
MORTGAGE shall be assessed upon tn
same terms as the interest OF tn
mortgagor.
1t is also provided that any contrac
by which the debtor shall obligat
himself to pay the tax on the interes
of the holder Of the security viii b
null and void. So, it is seen that III
! der the letter of the provision tn
debtor cannot be forced by direct cor
tract at the time Of making the loa
. into paying the tax upon the entir
: interest in the mortgaged property.
n This amendment applies alike
. real and personal property and
adopted win apply to all property
except railroads and other quasi publ
property-why property OF this elias
should be excepted from this metho
of taxation is not apparent.
A Before proceeding to discuss tn.
proposed law, it win be best to exam
inc the law Of taxation as it no
stands In this State.
The Statutes of this State now pr
vide that AL money loaned or inves
ed and all Indebtedness secured B
! deed, contract, mortgage or pledge {
property Of whatsoever kindn shall
> listed for taxation by the assessor {
the domicile Of the owner. As ii
law o stands the holders Of a
notes or contracts secured by NOR
gages or deeds of trust are compelle
: TO list them for taxation and a moi
for q, Zoo must be given In at its fu
value, when II this amendment
adopted the note will be accounted
an interest in the land mortgaged ar
subject to a reduction to one-third
!, its value just as is the land owned |
the borrower.
., In this way money loaned, not
secured by mortgage and deeds
trust will be assessed at one-third
: their value just as lands are o a
! sessed.
II, in order to assess the MON
loaned upon the property at its fl
value, as notes unsecured by MOI
Igage are assessed and win continue
Of be, the property affected by the sec
Or rity is put at its full value and If Il
loan is equal to one-half Of the vail
Iof the property pledged as is usui
then the owner Of the equity will
compelled 20 pay taxes upon a great
valuation than he now pays. 1t won
produce unusual disturbances In I'll
State il the owners Of all proper
were compelled to list it at full valu
/, ton. The chances are that for ma
years to come mortgaged proper
:. would be assessed at or near its fl
! value and property not m0rtgagl
( would continue at its present Yalu
> ton. If the property is assessed
its true value the taxes of Il
mortgagor will be increased and
I the interest Of the holder of d
e mortgage on terms of equality vii
q the owner OF the property, then tw
thirds Of the money loaned and s
= cured by mortgage or otherwis
Il which now pays on a full valuatio
viii escape taxation. In the event
the adoption Of this proposed amen
10 ment, a hardship will be worked
the borrower or the State will
cheated OF its taxation upon a Lar
Traction Of the money loaned ups
Oh mortgage or pledge Of any kind.
The law Of this State and mo
others treats notes and obligation
secured by mortgage OF deeds Of trus
as personal property for purposes
taxation and make them assessble
o. the domicile Of the owner.
The legal situs or locality Of BON
and debts generally and undertaken
for payment Of money and all chos
IN action follow the personal domici
Of the owner thereof and is not tar
: bic at the residence br dOmicile Of Il
debtor.
IL has been held by the Unit
Estates Supreme Court that for Il
purposes Of taxation a debt has /
situs at the residence Of the credit.
and may be taxed there and that Il
power Of taxation OF a state is limit
to persons, property and busine