New-York tribune., 1901-04-15
TO IMPOSE MORTGAGE TAX.
sTKANAHAN MEASURE EXPECTED TO
PASS LEGISLATURE THIS WEEK
PRINCIPAL FEATURES OF
IT AS MODIFIED

,l;cans who attended the conference in Cow
.rnor Odelrs private office at the Capitol on
rhursday night say with great positiveness that
.be Mortgage Tax bill, introduced by Senator
etrauahan. aside from the New-York Charter
Revision bill. was the chief subject under con-
.;deration. Il think really said one who was
present. 1--WE talked more about taxation matters
than about the charter"
Was it decided to press the Mortgage Tax
act?" was question asked of one of the mem
hers present ar the conference
IT decided to press it, he replied and
II is TO be passec- And believe that many of
the men who favor the Slater bill exempting
mortgages from taxation will now turn about
and support Senator Stranahans bill, because
they would rather pay the small tax it imposes
upon mortgages than the large one they now
pay when the tax is collected. The supporters
Of the bill TO relieve mortgages from taxation
do not seem to realize that it would be impossi-
bic 10 pass such a measure"
SENTIMENT OF RURAL MEMBERS
Speaker Nixon is of the opinion that Senator
Slater could not pass his bill. Il think people
in New-York City" said Mr.. Nixon yesterday
80 not realize the intensity of the feeling in
the rural part OF the State in favor of taxing
mortgages at least to the extent proposed in
Senator Stranahan's bill. This is a legislature
very largely composed of rural members, and
they must heed the sentiment Of voters in their
districts. be prepared to retire permanently
from public Office
The Stranahan Mortgage Tax bill, therefore,
IN all probability. will be pressed in the legis
lature the present week 1t has been undergo
ing a transformation since its introduction
March Z; indeed three transformations, at the
hands Of the Senate Committee on Taxation and
Retrenchment, and therefore some account Of its
he welcomed hE those inter-
ested in this legislation.
The bill opens with a statement that the tax
alton it imposes shall take effect Immediately
but shall not affect taxes levied under authority
Of counties cities, towns, villages, school dis
tricts and other subdivisions Of the State. The
words real estate" and real property" as used
in the act are TO be understood to include every
thing a conveyance or mortgage Of which is
capable under the laws of this State OF being
recorded as a conveyance or mortgage of real
property 1t then declares that '-all debts and
obligations for the payment OF money which are
secured in whole part by mortgage of real
property situated within the State. together
with the mortgages securing the same, shall be
deemed by all courts 10 be property within this
State Such of the debts. obligations and Sc
curities aforesaid taxed by this article
for the use of the State, and of the subdivisions
thereof, shall be exempt from taxation by coun-
ties cities. towns. villages school districts and
other local subdivisions of this State, and they
shall not be otherwise taxable than as provided
In this article
WHAT MORTGAGES ARE EXEMPTED.
One Of the most Objectionable features OF the
bill in the estimation of those who are op-
posing it is its exemption Of a large class Of
mortgages from taxation. Below is the pro-
vision in this respect:
There shall be exempt from the taxes for the
use of the State and of the subdivisions thereof
imposed by this article obligations secured by
mortgage to the commissioner for loaning GER
tain moneys Of the United States of the several
counties OF the State, all serial bonds heretofore
or hereafter issued under and secured by any
corporation mortgage or deed of trust, and
ownership of which is vested, and so long only
as the same shall continue to be vested, IN the
United States or in this State, or IN any savings
bank, trust company, ttle guarantee company,
insurance company, fidelity and casualty COM
pany, or building and loan association lncor-
porated under the laws Of this State. or in any
bank or banking association incorporated under
the laws OF this State or Of the United states, or
any corporation or association organized ex-
clusively for educational purposes; and all such
exempt mortgages, so long only as they shall
continue to be exempt, shall be entitled to be
recorded and may be assigned, released and
satisfied without the payment OF the taxes pro-
vided for in Section 296 Of this article.
regular annual tax for the use of the State
and its subdivisions is imposed on each and
every debt and obligation, and upon the mort
gage securing the same, except these exempted.
which tax shall be equal to five mills on each
dollar Of the amount Of the principal debt or
obligation as the same shall be at o'clock ante
meridian on the 1st day OF July each year and
shall be due on said LIST day Of July, and payab Bile
as hereinafter provided" At the same hour, 1t is
declared liens for said tax shall attach. and
shall be deemed by all courts to have attached
in favor OF the State upon each OF said debts
and obligations, and upon the mortgages Sc
curing the same"
THE PENALTY PROVIDED.
There then follows this remarkable provision:
4 special tax for the use Of the State and OF
the subdivisions thereof is hereby imposed on
each and every debt and obligation secured by
mortgage of real estate situated WITHIN TINS
State made prior TO the 10Th day or June, ~
the year 1901 which mortgage shall not nave
been recorded in the county where the mortgage
property. some part thereof, is located prior
TO o'clock ante meridian on the ISL Gay oi
July in the year 1901, and such speclai lax snaA
be equal 10 one cent on each and every dollar
OF the amount of the principal debt or oblgauon
secured by such mortgage, as the same shaii pe
at that time Additional special taxes OF nVe
cents On the dollar shall accrue annually untl
said mortgages MADE prior TO saio iotn Gay ~
June, 1901 shall have been recorded. unless tie
same shall have been recorded prior 10 July
1902 a special tax of one cent on the dollar Is
hereby imposed upon each ana every oeol %
obligation secured by mortgage, OF real prop.
erty situate within the State on or after salo
18th day of June which shall not be recoroee
within thirty days after the execution thereoi
and additional special taxes or nVe Genus on 'iis
collar shall accrue annually on Ihe -, 80 uas r ~
July until such mortgages shall nave beeh re
corded Any debtor other person VINO shai
furnish TO the State Controller or TO the Stau'
Board Of Tax Commissioners lnlorhlation a non ~, re
sulting in the recovery OF any specia tax I'M
posed by this section shall be entitled to b'