The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1900-10-13
WHAT 70 VOTE UPON.
Proposed Amendments to the State
Constitution to Be Voted Up
on in November.
TAXATION OF MORTGAGES ONE OF THEN.

Fair and Others Change Certain Lawa
Of State Courts-aIstters OF Importance
to Every Voter in the St.te-Kesd Them
Carefully.
Seven amendments to the cOnStltu.
ton of the state are to be submitted
to the voters of Missouri at the COM
ing election. All are important, IN
that they will work radical changes
in the fundamental law of the state,
but three stand out as of pre-eminent
interest.
Two of these are important, be-
cause they provide Tor essential steps
in the promotion of the Louisiana
Purchase Centennial exposition.
The third is important, because it
will work a change in the method OF
assessing the revenue, and will place
q burden of taxation upon a class OF
property which has heretofore large
~ escaped taxation.
In brief, the two Worlds Fair
amendments provide for the issuance
of bonds by the city of St. Louis to
the amount of $5,OOO,OOO for the fair.
and for the appropriation by the
state legislature of S ,000.00O out OF
the sinking fund for a state exhibit
at the fair.
Ii these two amendments fail, the
fair will be given a death-blow, be-
cause the appropriation of $4,000 600
by the federal government is condl-
tional partly upon the raising of the
$1,000, 900 by the city of St. Louis by
an issue of bonds.
Taxation of Mortgages.
In brief, the third amendment spe-
cially mentioned provides for the tax
alton of mortgages. 1t is as follows:
Section %. A mortgage, deed of trust.
contract or other obligation by which a
debt is secured, shall. for the purposes OF
assessment and taxation, De deemeu any
treated as an interest in the properly AZ,
fected thereby, except as to railroad ana
other Qnasi-public corporations. Tor whlcn
provision has already been made by law:
in case of debts so secured, the value OIL
the property affected by such mortgage.
deed OF trust, contract or obligation, less
the yalue of such security, shall be as
sessed and taxed to the owner OF the
property, in the manner h~ereina1tef 10 De
security shall be assessed and taxed TO
the owner thereof. in the county. city or
other local subdivision in which the prop
erty affected thereby is situate. the
taxes so levied shall be a lien upon the
property and security. and may be paid
by either party to such security. III PAID
by the owner of the security, the TAX 50
levied upon the property affected thereby
become a part of the debt so Sc.
cured: If the owner of the property snail
pay the tax so levied on such security, 1t
shan constitute a payment thereon, and
to the extent of such payment a full dis.
charge thereof: Provided. that in all
such cases, the interest of the owner of
of the property affected by such mort
gage, deed of trust, contract or obliga
ton, shall be assessed on terms equally
fair and just. II the note or other obi.
payment made on the principal thereof.
the assessable value of the owner of the
security. upon the fact being made
known to the assessor prior to the as
sessment. shall be diminished by the
amount of such payment. and the asses
value of the owner of the land or
the intent hereof being to place
those interested in n way in such land
or other property, on the plane OF abso-
lutte equality as TO taxation.
Section %. Every contract hereafter
made by which a debtor is obligated To
pay any tax or assessment on money
loaned, or On any mortgage. deed of trust,
or other lien, snail. as to any interest
specified therein and as to such tax or as
sessment. be null and void.
An analysis of the amendment dis
closes the following provisions:
1. That for purposes of taxation n
shall be treated as al interest
in the property.
>. The value of the property shall be d.
vided into two parts when assessed, the
equity being one part and the mortgage
the other.
3. The tax upon the equity shall be
levied on the owner of prODprtv.
1. The tax upon the mortgage shall be
levied on the owner of the mortgage.
). AS it is not always easy to tell who
the mortgage. the two taxes are
made a lien upon the two things taxed,
and both taxes may be paid by either
man.
that part of the tax which was on
the euuity becomes an additional part OF
debt, to be ultimately paid by the
owner of the equity,
the tax on the mortgage becomes q
part payment on the debt, and to the ex-
tent of the payment a full discharge
thereof.
5. In making the assessment. both sides
are to be assessed on terms equally fair
and just.
.. If the owner of h equity makes a
partial payment on the note the next as
of the equity is correSpondingly |
and of the mortgage CORE
spondingly decreased.
I. TEL. II " oCpiotv AA AAS I
money. is required to obligate himself to |
pay any tax or assessment on the money
borrowed, the proposed amendment frees
him from any such obligation and pre-
vents the collection of more than the |
legal rate. 6 per cent. in interest. |
How Such Inv Would Operate.
To Illustrate:
A man owns a house and lot valued at
10. 900, on which he borrows S, 900 at 6 per
cent. The tax rate is, say, 2 per cent. In
the property for taxation, the
assessor levies 5000 against the owner of
he equity. and $500 against the owner of
.he mortgage. making the tax 500 on
zach. If the owner of the eQuity pays the
200 tax, his debt is thereby reduced to
4. 600, and the assessment on his equity
If the mortgage pays the 500 tax the debt
$ increased to s., 100. Inc the next assess
nent of the equity will be reduced to 81
70 |
Worlds Fair Amendments.
The first of the Worlds fair amend
nents, providing for an issue of
ponds by St. Louis, is No. 4. 1t is as
That section IL of article 10 of the con-
be amended by the addition
hereto of the following words: And pro-
les of the city of St. Louis are hereby au-
to issue interest bearing bonds
4 said city in the amount of $ 000, 900, at
rate of interest not to exceed 4 per
ent. per mum. the principal payable
within so years from the date of their
ssue. and the proceeds thereof shall be
laid to the corporation organized for the
1T 4