The times. [volume] (Richmond, Va.) 1890-1903, 1901-12-14
DOUBLE TAXATION.

Virginia taxpayer gives us Inns Az
+o-os,inr ohiect-lesspn in double taxa
ton. He owned a house and lot, Whici'
wac sold to a friend. The friend madc
cash naynent and executed his note Tor
the balance, securing the note by a ''ior'-
cage on the property. The purchaser met
with misfortune and was unable TO pay
taxes on the property, and IN oToer ~
nrevcnt the property from becoming oe-
l;noucn. the seller has had to pay the
60, account The note is also listed Tor
taxation and he pays taxes on the ho'e
also And so this citizen is paying taxes
on tho full assessed value of the property
ana having an additional tax on the
mortgage
We are glad to have been Informed OF
chic incident, for it is one of the most
..-,,,;,r cases OF double taxation that
has come under our notice But the pliii-
c;p1e is tho Same in any event. 1t Is
absurd to say that any properly IS cic
ated when an exchange of this character
Is made. and it IS the Erossest sort Oh III
Justice for the State to set up such
We mentioned the other day the case
of a, citizen in HenTico. VINO hao pun"
chased a lot from q friend giving MS
open note OF hand as an evidence Oh lhe
debt. Not a dollar was paid on tho pur-
chase as It was a friendly TRANSACTION
and of course mo property was crea'eu.
II is the Same lot now that it was pc
fore. the only difference belns mat IL
stands in the name of another PERSON.
Yet the State and county require the
purchaser Of the lot to pay q, tax on us
assessed valuation and require also the
holder of the note to list that piece OF
property for taxation.
But some will ask, what GOOD II *ou!o
do the purchaser to exempt the note
holder from taxation? 1t would DO MN
this: If mortgages were exempt from
taxation under the Virginia laws the rate
81 interest would undoubtedly come down.
Tor cxample the State and county taxes
in Henrico county amount to ABOUT per
cent. In point Of fact it is a little less
than ! per cent. but for the sake OF con-
yenience We will use the round NUM-
Der. The purchaser Of this lot pays D
nor cent interest on the note which he
has given, / per cent Of which the noloef
of the note pays to the State and county
for taxes But If the note were exempt
from taxation The holder of the note
could reduce the rate of interest to per
cent. and that's where the maker OF the
mote would be benefited.
Is il not perfectly clear from this that
the double taxation comes out OF the
debtor and not out of the creditor? Inc
holder of the note adds enough to the
rate of interest to meet the tax, and so
in his case the purchaser OF the lot pays
both the tax upon the lot and the tax upon
the note It is the debtor who catches 1t
every time and the only possible relief
to him is 10 exempt the mortgage. Some
people contend that the land should be
exempt to the extent of the mortgage
But this is impractcabie and contrary
to the principle of taxation. 1t is for
the State to tax substance that upon
which the State can lay its hands. that
which is in view and cannot be conceal
cd. 1t would be folly for the State to
exempt the substance and chase after
the shadow Our tax laws will be con-
fused and our whole system of taxation
will be confused until this principle is
made the basis of taxation and tax laws.