The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-08

EXEMPTIONS AND DEDUCTIONS.
Nor must you get confused as TO ex-
emptions and deductions. During all of
the States history under the new Consti-
tuition deductions have been allowed from
credits. The Legislature of 1899 went a
step farther and allowed a deduction not
exceeding 500 on account Of mortgage in
d~ebtedness. These two classes Of deduc-
lions must not be confused with exemp-
tions. There is now pending in the Su-
preme Court Of this State a case which
involves the constitutionality OF the mort
gage deduction. The state statistician has
collected the facts respecting the total
deductions in Indiana. IL Is the first time
that we have known, in Indiana, exactly
how much property has been withheld
from the duplicate by reason of the de-
auctions from credits.
From the report of the statistician it
appears that sc. 900. 900 of taxable property
this year is withheld from the duplicate in
Indiana because of debts being deducted
from credits by taxpayers. 1t is a remark
able coincidence, but true, that the total
deductions on account of the mortgage in
debtedness in Indiana for the year 1900
amounts to $40.000.O00. Here is a grand
total Of $50, 000. 900 of deductions, claimed by
taxpayers in Indiana in one year under the
two deduction laws on the statute books.
Eighty thousand taxpayers in Indiana
have filed affidavits and made claims for
these deductions under the new mortgage
deduction law. L have defended this mort
gage deduction law wherever assailed, and
shall continue to do so. L know of no prin-
ciple of law that will protect deductions
from credits and at the same time destroy
deductions from mOrtgaged property. 1t is
said that credits ought not to be taxed,
because they may not be collected. True.
But they are appraised at their probable
value, which includes the hazard OF collect
ing. But credits are generally more val
liable than money. A mortgage on your
home is more valuable TO the holder OF
the mortgage than gold; and yet that is a
credit from which the mortgage can de-
duct his Indebtedness. Deductions have al
ways been allowed from mortgage notes,
and you know that mortgages are generally
better than money, and the holder thereof
prefers them to money.
If a deduction can be taken by a mort
gage from the mortgage on your home,
what principle is there that stands in the
way of your receiving a deduction on ac-
count OF the same mortgage on your home?
/ know this law has been assailed, and that
II is being assailed throughout this State.
There should not be one law in this coun-
try for the creditor classes and another for
the debtor classes. There should not be
one law for the mortgage owner and an
other for the lot owner. All should be
taxed alike. The deductions claimed on the
SIC. Z. of credits should go down if the
deductions claimed on account of the $iO,-
100000 of mortgages must go down. L insist
that the whole $50, 000,0 600 of credits should
rise or fall together. One of your duties is
TO seek out omitted property and put II
upon the duplicate; but neither you nor
any other citizen has a right to insist upon
one rule for the rich and another for the
poor; one rule for the note owner and an
other for the lot owner. Omitted property
is not property that has once been as
sessed. If property has once been assessed,
although 1t has been assessed too low, ii
cannot be corrected until the next assess
ment. If real estate has once been assessed
during the year for the assessment of real
estate, that assessment must stand until
the next quadrennial assessment. No Off
Ger or body of men, after the assessment
has once been completed, has a right to
~a that nEnneaD,ant UIn
is not completed until the county board of
review, and, finally, the State Board of Tax
Commissioners, has approved of the as
Omitted property, therefore, is
property that has not been assessed at all.
Omitted property is generally, personal
omitted. Who can assess omitted prop
erty? First. the township assessor: sec
ond, the county assessor; third, the county
uuitOt. A"O NoNHNS iNPcAN
omitted property to the county auditor for
assessment.
"The township assessor assesses omitted
property prior to the filing of his report
with the county auditor. The county as
SCISSOR assesses omitted property at any
time. Up to the first Monday in July the
county assessor has possession of the
maps, and so forth. On that day he turns
these books over TO the county auditor,
with all of the county assessors assess
ments added. After that the county as
SCISSOR is at liberty at any time TO make
these assessments upon omitted property.
He has the same powers or examination as
have the township assessors. The county
auditor has authority to make assessments
for omitted property at any time.
FILING OF NOTICE.
"The statute provides that before an as
sessment can be made on omitted property
a notice must be given to the owner of the
property il he resides in the county and is
not present where the assessment is made.
If he resides outside of the county or out
side of the State the statute provides that
no notice shall be given. This question of
notice has been fought out recently in the
Supreme Court of this State and in the
Supreme Court of the United States in the
Gallup case. 1t has decided that one
who is present, although he lives outside
of the State, has all the notice that any
law requires. Property can be assessed for
al. the years back to 1881, when the omitted
tax law was first passed. This rule applies
as we'll to the estates of deceased tax
payers as to the property of living tax
payers.
'If the taxpayer is living he can be in
terrogated end the value of his taxable
property for all the years back TO 1881 can
be ascertained. If he is dead his admins
traitor or executor may be Intercepted
with other persOns) as to the value Of the
property of the deceased for each of these
years back to 1881. 1t is well nigh impossi-
bic in some cases to tell the value of the
property of a deceased taxpayer for any
considerable number of years back.
The supreme court Oh llQldnd. approved
by the Supreme Court of the United States
in the Gallup case. has decided that an ap-
Proclamation of the value of such property
for the preceding years may be made by de-
Quoting for each preceding year a certain
per cent. which may represent the reason
able earning power Of the property. A final
settlement of a decedent's estate can be set
aside within three years and subject such
estate to the payment of the taxes on prop
erty that has been fraudulently concealed
in the lifetime of the deceased. Property
can be traced into the hands of the heirs
and recovered and subjected TO the payment
of omitted taxes.
Furthermore, it is the primary duty of
the executors and administrators of all
estates 10 pay the taxes upon their estates,
and IL is the corresponding duty of the
county treasurer TO file a claim against
the estate of all deceased persons as well
as all bankrupt and receivership estates
for all taxes, current, delinquent ana
omitted. All that is necessary is TO Hle the
facts. This claim should be Tiled with the
clerk of the Circuit Court having jurisdic-
ton of the estate and filed in the matter
of such estate. II is not necessary that
an ordinary suit at law be had, but when
the claim is once filed with the estate il
is the duty of the executor or administrator
or receiver or assignee to pay the taxes
or TO appear and resist the pa yment thereof
without any summons or notice Of any kind
or character other than the filing of the
claim.
IF an administrator. or executor. or
trustee. or receiver, closes up an estate
liable. under the statute, for all such taxes,
- r. vauaa a no cO1laoted from, III,