Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-01-30

oAS-IuuQ 10 uWO-HILhS OF MS income
from mortgages and two.thirds of his
income from money deposited in Saw
ings Banks, direct to the tax collec-
tor.
Instead of attempting to continue an
uphill fight for the collection of taxes
on personal property that can easily
be concealed, for it must be remem-
bered that if the present system con-
tinue, those who desire to escape the
ferret will find other means of doing
SO, than merely by loaning their mon
ey in other counties. l would suggest
that personal property be assessed at
lower proportion than real estate,
for the following reasons:
l. 1t is double taxation to tax both
the property and the debt against it.
2. The taxes are too heavy a pro-
portion of the income from the prop
erty taxed. Improved Ottumwa real
estate brings the owner, as rule, not
less than ten per cent on his invest,
ment. A good farm mortgage brings
five or six per cent. The taxes here,
and in most Iowa cities, amount to at
least eighty mills or two per cent Of
the actual value.
3. Very little real estate in Ottum-
wa is assessed at anything like TWEEN
ty-five per cent of its real value, while
all mortgages and bonds are, in the
very nature of things, assessed at full
value, when reported to the assessor.
d. A large proportion of cur taxes
are caused by our schools, police and
fire protection, and street departments.
This does not add value to a mort
gage held on Keokuk county lands, but
it does make Ottumwa CITY property
more valuable.
5. The present system puts pre-
MUM on dishonesty and fraud and
takes one-third of the honest widows
income and nothing from the man
sharp enough to dodge his taxes. It is
therefore essentially unfair.
6. If this present agitation is kept
up one of the methods adopted by our
wealthy citizens to escape what they
deem an unfair taxation will be to
change their legal residence to some
village or summer resort where the
taxes are low, just as many wealthy
New Workers make Newport their le-
gal residence.
Thus our city would lose all the
taxes on their personal property, nor
will the persons who thus escape taxa.
ton take such an interest in the well
fare of the city as they would other
wise.
z. The present system puts the To-
cal money lender and our fellow citi-
zen, at disadvantage compared with
resident of another city or state,
while as far as real estate is concern
ed the nonresident owner is usually
the one who gets the worst of the as
sessment.
Let us consider what the result
would be if mortgages and that class
of personal property were assessed,
for example, at five per cent or ten
per cent of their real value instead of
twenty-five per cent
1. The principal result would be to
greatly increase the amount of per-
sonal property reported to the assess
Or for the principal incentive to con-
cealment would be removed. The in,
crease would nearly, if not quite, be in
proportion to the reduction, 1t is very
possible that the total tax, income from
personal property would be increased,
for where man now reports one
fourth or one-fifth of his personal prop
erty, he would, under the new order
to clear his conscience, probably re-
port it all. And other persons with
small amounts loaned who are report
ing nothing at present would make
their returns. Many men would make
false returns to save $500, who would
not to save 500.
Thus the taxes on real estate would
not be increased as one might sup,
pose at first glance.
2. The rate of interest on Ottumwa
city property loans would be reduced.
Very naturally investors living in the
east do not care to make city loans as
there is always question of value and
danger of depreciation that does not
exist with farm lands.
Local investors will not make Of
tumwa loans if they desire to escape
taxation unless they can get enough
interest to cover the taxes that they
would not have to pay if loaned in 9TH
er jurisdictions which the tax ferret
does not reach.
3. 1t would largely stop the demon
alizing practice of tax evasion and
save the county the expense of tax
ferrets.
This plan is not original with the
writer but has been successfully tried
in several states.
1t is not plan to increase the in
come from taxes but merely to equal
ize taxation which is the great prob
lem.
1t would largely relieve from taxa
ton the poor and honest man who has
a few hundreds invested in mortgages,
while it would equalize the proportion
among the wealthy.
The writer not being "bloated
bond-holder" is not discussing this
question as a matter of personal inter-
est, but as he believes, from an i'm
partial standpoint. H. S. M.