New-York tribune., 1902-02-24
EoUALTZE MORTGAGE TAXES.


1t is curious thing that the opposition which
has developed in the legislature to Senator
Stranahan's mortgage tax bill should come al
most entirely from persons who have been de-
nouncing the injustice Of the existing tax law
as affecting mortgages and trying to secure the
taxation of all mortgage debts. The persons
who on principle have opposed mortgage taxa
ton are so much impressed with the outrageous
inequality of the present system and the hard
ship inflicted by ii on widows and orphans
that they have. for the most part. been willing
10 put aside their objections and accept MI
Stranahans bill. now that he has modified 1t so
that the tax will not be a hardship ana VIII
not provoke a wholesale calling OF loans. JUST
because it does not severely punish people 1or
the crime of accommodating others with loans
some people who were formerly enthusiastic
for the principle Of mortgage taxation now pre-
fer the inquities Of the old law. They are saying
that the rural districts cannot afford to do with
out the revenue from such mortgages as are now
taxed, though they were ready enough to see
them do without it when the plan was TO exempt
all mortgages from local taxation and tax them
for State purposes every year at the same rate
that 1t is now proposed TO tax them at the time
of recording. or about once in three years, for
that is the prevailing period of mortgage. loans
If those who think there is going to be any
serious loss TO country taxpayers from equal1z-
ing the tax on mortgages will examine the re-
port of the joint committee on taxation OF 19OO'
which reported Mr.. Stranahan's original mort
gage tax bill, they will see that their fears are
unfounded The committee said:
1t has been shown to satisfaction that
mortgage Indebtedness. while legally taxable, Is
not actually productive Of much revenue. Be
cause of exemptions enjoyed by particular
classes of mortgages, and the apparent inability
of assessors 10 find this particular class of
property. and for other reasons the Iact Is, una.
owners of mortgage debts. as class DO not
contribute TO the public revenue. In the rev
cases in which the property In mortgages goes
upon the assessment roll, the local rates operate
with great and undue severity. Sometimes
more than so per cent OF the income has to be
turned over as tax. These cases of extreme
hardship are usually those where a trustee
executor is taxed for the property OF widows
and orphans, body of citizens who are least
able TO support themselves. and often dependent
upon a slight income for their subsistence. The
property IS usually brought to light in the Sur
rogates Court, and is easily placed upon the
roll. That these classes of persons should be
assessed at the rate OF so per cent of their in
escape is a glaring injustice, and one in which
the appeal for relief at the hands Of the legis-
lature, as shown by the correspondence of the
committee must not be denied or delayed.
The committee also published tables OF taxa
ton of typical rural counties. In Oswego per-
sonal property, including that Of railroads and
all other corporations, paid only about II per
cent of the taxes In Chenango, less than u
per cent Of the tax levy came from personal
property, and in Oattaraugus County only 10
per cent. 1t is doubtful If in any one OF these
counties mortgages paid 3 per cent Of the tax
We do not believe that any rural taxpayer
is so selfish or narrow minded to object to
doing away with the inequalities described by
the committee. just because his county or town
has on fits rolls few widows or other persons
owning mortgages and paying perhaps per
cent of the taxes. when everybody knows that
in the country. we'll as in the city, the bulk
of the mortgages is untaxed. The pending
measure puts a small tax on all mortgages, and
IT cannot be that those who want mortgages
taxed VIII object to equalization Just because
the rate proposed is not quite high enough to
suit them.