The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-05
A MORTGAGE DEDUCTION
SENATOR WALTER l.. BALL, OF Nun
Gle, EXPLAINS THE LAW.
He Says Wrong Conception of the
Law Obtains What 1t
Really Means.

State Senator Walter l. Ball. of Muncie,
is greatly interested in the attack that is
being made upon the mortgage deduction
law in the courts of Marion county. since
he was the author of the law. Just why
the newspapers refer to this law as a mort
gage exemption law" said the senator, Il
can scarcely understand. 1t is not ex-
emption of property from taxation that
is permitted under the act of 1899, but
merely right to deduct or substract mort
gage Indebtedness from real estate yalua-
ton up TO 500"
Senator Ball called attention to the fact
that under the act of 1881 person Is al
lowed to subtract from the gross amount
of his credits the amount of all bona-fde
debts owing TO him. and that the Supreme
Court has held this act constitutional. He
insisted that the act of 1899 is essentially
similar in principle THE Constitution of
Indiana provides, he said, that the Gen.
eral Assembly shall prescribe sucn regu-
lations as shall secure a just valuation for
taxation OF all property, both real and per-
sonal. excepting only such shall be
specifically exempted by law, and the Con-
stitution names the kinds of property that
shall be exempted
s'"fherefore, the power to tax Is not
judicial one. Ii is sovereign in the Legis-
with. the wisdom policy of the legisla-
ton. They can only determine whether
the act contravenes the Constitution The
method by which the valuation is ascer-
tanned is exclusively OF legislative judg-
ment. The Legislature has determined
iris by saying, that person who owns
may subtract 500 of his mortgage indebted
ness from the real estate valuation and pay
taxes upon the remainder. This relieves
the person from double taxation. 1t is not
exemption. 1t extends no immunity to the
maker of the mortgage. 1t simply per-
| mits the person TO pay taxes on the prop
which his property may be justly assessed
and taxed. Prior to the passage of this
mortgage deduction act by the Legislature
| OF 1899, If man s property were worth
$500 and ne had mortgage of 500 upon
| IL he was required TO pay taxes on the
$500 and the man who held the mortgage
paid taxes on its amount, 800. This GER
| talnly was double taxation, and 1t fell
upon class of people who could least al
! ford it.
''Of course it is necessary to raise
certain amount of money each year TO de-
| fray the expenses of government. The
/ more property We have on the tax dupli-
| cate the lower the rate of taxation. II
| mortgage Indebtedness is deducted. the re-
/ suit naturally follows that more property
must be listed for taxation or the rate must
| be increased. / realize, therefore, that
some personal property owners are not at
all i'm love with the mortgage deduction
/ law, because the assessors and the law
i have become more inquisitorial since it's en-
/ actment in their efforts to discover per
] sonal property that is not open to inspec-
! tion, and which many individuals. through
| avarice would not disclose except under
| legal compulsion. But real property can
! not be hidden. The sun shines upon IL
| every day IT cannot elude the eye of the
| assessor. II is always open to public OBJ
servation and inspection, and no fraud or
| revision prevents IL from being assessed
| for taxation. 1t follows. / think. that real
estate pays the greater proportion Of the
| tax. because it is and can all be taxed
/ The act of 1899 therefore. instead of being
! an exemption law. is just deduction right
/ that has long been wrongfully withheld
from a class of people that has in conse-
| quence borne a burden of unjust taxation
| The act of 1899 is a wise. just and popular
law IT * popular because il exerts
beneficial influence upon every man or
woman i'm the State that owns home. |
cannot believe that such law will be over
thrown by the courts