Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1900-02-06
SENATOR SIEBER'S DOUBLE TAXATION
BILL.

Iltut Vi tuAtS ulIob SuNn piNDoi''ph Os
the value of the property as may be
represented by mortgages or other
obligations which are II lien thereon,
brings up some interesting points In
the problem of taxation which may be
studied with profit by the members of
the General Assembly.
The theory Of The Sieber bill is TO re-
lievo the owners of mortgaged proper
ty of double taxation. Under the Ohio
laws all mortgages owned by the resi-
dents of the state are subject to taxi
tion. Real estate Is taxed upon an ap-
praise valuation regardless of mort
cages or other obligations which may
be lien upon 1t. Thus we have, in Of
feet. double taxation upon the value of
every mortgage, the burden of which
falls upon the property owner, for he
pays the interest. Senator Sieber's
scheme would operate in this manner:
suppose A owns house aud lot val
Icd ut $1,000, oil which Ii holds n mort
gage for $1,000. For the purpose OF
taxntlon the property would be consid-
cred TO be worth, therefore, only $4,000.
AS property is usually listed at about
80 per cent. of its supposed market
value, AS house aud lot would be
placed on the tax duplicate at $1,000 in
stead Of s., 400, as at present.
We take it, at least, that such is the
intended application of the Sicbcr bill.
We know of instances where property
Is listed for taxation at less than the
value of the mortgages upon it. Manl-
fcstIy, il the property owner were per-
mittcd 10 deduct, In such instances. the
value Of the mortgage from the listed
value of the property, the property
would be wiped out of existence, so far
as taxation is concerned. We cannot
conceive, however, that such an inter.
probation would bc placed upon the
bill.
Admitting that in theory the Sicbel
bill is just and equitable, the question
arises MS 10 it's probublc effect. Tho
bill very CONSIDERABLY provides that
| any contract which requires the mort
gagor to pay any tax OF assessment on
| the mortgage shall be null and void SO
| far rs such stipulation Is concerned
nlS IloN lNlolt NOulNl Sttlll W
ly protect borrowers from cxtortion
but II would remain to be seen whether
some ingenious person might not do
| wise some way to eyadc il. The bill
certainly would have the effect of rcn
dcring it extremely difficult, if not i'm
possible, for persons to oyalc the list
ing of mortgages for taxation as Is now
frequently done by residents Of ia,
state. The burden would fall chiefly
however, upon persons in other state,
loaning money in Ohio Foreign mort
cages are exempt from taxation upoi
the suppositon that the holders pal
taxes on them IN the state whore they
reside. AS n matter of fact, however
money Is loaned by many persons an,
| WI p'lu'ioHS outSiNN VI lHt suites II
which they have q residence or cXis
tencc merely for the purpose Of evad
ing taXatlon. A man who Is well In
formed upon the matter OF loans tell
us that the effect of the Sieber bill
would be TO cause the withdrawal o
all foreign money from the state. ex
cept such ms would be exempted fron
taxation. A, the present rate of taxa
tlon in Columbus foreign money loane,
IN Ohio at Il per cont. would ouly ne
the investor 3.3 per cent. should tn
Sieber bill be made law.
The exemption OF building aud Ioa
associations along with. other quas
public corporations. from the opera
tions Of the bill would give these loa
associations a great impetus. In fac
il would practically make them th
agents through which the great mi
iority of loans would be made. Coul
they get money at I per cent the
could loan 1t with certain profit at