The Butler weekly times. (Butler, Mo.) 1881-1918, 1900-11-29
CROW GIVES HIS VIEW.
Third Amendment Will Not In
crease Amount of Assess
able Property.
Money Lender Must Share With the
Property Owner the Cost of Taxes.

opinion, under the third cOnstitu-
tional amendment. mortgage ON
real estate would be assessed at it's
full value in cities or counties where
the real estate included in the mort
gage was not assessed at its full val
ue, but only at 30 or 40 per cent
thereof. General Crow replied shat
it was a practical question that .af-
fected the actual operation OF the
third amendment.
The third amendment simply pro.
yides that legally the mortgage
should Ice assessed a. a part OF tine
real estate il covers. said he The
amendment itself provides a. fol-
lows: Provided that in all such
cases the interest OF the owner of the
security, as well as that of the owner
OF the property affected 10y such
mortgage, deed OF trust. contract
or obligation shall be assessed on
terms equally fair and Just
This means that the mortgage
and the land shall be assessed on the
same basis. The mortgage being
made by the amendment. for the pur-
pose OF taxation. part of the land.
il must of necessity be valued and
! assessed Oh the same principle as the
land.
The command of the constitution
is direct that the amount OF the val
Ne OF the security shall be deducted
from the value OF the property mort
gagged and the value of the property
incumbered less the value OF the Sc
curlty shall be- assessed and taxed to
the owner OF the property, and the
value OF the security shall be assessed
and taxed to the owner of said secu-
rity.
"Of course | take the words, the
value Of the property affected by
such mortgage, as used in the con-
stitutiOnal amendment to mean the
assessed value and not the actual
value. But if the words the value
OF the property affected by the mort
gage be taken To mean the full val
ne the same ratio of taxation Of both
borrower and lender will be main
tanned.
''Of course. this amendment, il
adopted. will need some legislation.
perhaps, To assist in its operation.
For instance, there should, perhaps
be a provision in the statute specifi-
cally providing that the notes secur-
ed by the mortgage thus taxed as
part of the real estate. should not be
assessed as personal property wit hin
the state at the residence of the own
or of the notes. This would prevent
any possibility of double assess
ment.
The amendment, it will be noticed,
fixed the location OF the mortgage.
without regard TO where the mort
gagee lives, for taxation where the
land it covers lies. This will. per
haps have the effect of diminishing
the amount OF personal property for
assessment in the state and will not
increase the assessment of the real
estate anywhere. 1t is impossible
as | believe for this amendment to
Increase the amount OF taxable prop !
ertE on the assessment lists
III the amendment is adopted, it !
will be necessary for the assessors to
assess the interest Oh the land Of the +!
owner and the money lender sepa-
rately at the next assessment. And
whether or not this can be done in
each instance will depend on the fact
"a to whether or not the mortgage
or deed of trust in existence at The
time the amendment becomes effect
I've contains provision that the
borrower shall pay all the taxes? If
1t does, the separate assessment need /
not be made because the amendment !
could not impair the obligation of a /!
contract to pay the taxes existing at
the time the amendment was adou-
ted.
1T has been suggested that the
federal supreme court might hold the
amendment No. 3 violative OF the
federal constitution. In reply to this
suggest III 169 I. : Rep. page
421. the federal supreme court up
held statute Of Oregon taxing the
mortgage in practically the same
way this amendment No. = taxes
them. | believe no trouble on that
ground need BE- feared "