Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1902-10-25
STATE OF WISCONSIN.
EXECUTIVE OFFICE.
MADISON, WIS. Nav 13 14

MADISON, WIS.,, May 13. 1901.
To the Honorable, the Assembly:
Il herewith return without approval
Bill No. 284, originating in the Assem-
bly,, entitled, An Act relating to the tax
alton OF mortgages and mortgaged real
estate.'
'In my judgment this bills in conflict
with the provisions of Section 1, Article
8, of the constitution of the State, which
prescribes that The rule of taxation
shall be uniform
"The bill provides that the interest Of
the mortgage shall for the purpose of
taxation be deemed an interest in real
estate; that IN CASE A VALID AGREE
MENT SHALL BE MADE BY THE
MORTGAGOR TO PAY ALL TAXES ON
THE LAND then the interests of both
the mortgage and mortgagor SHALL
BE ASSESSED AND TAXED TOGETHER
AGAINST THE MORTGAGOR.
"No other rule than that now provided
by law is prescribed for the valuation of
real estate. A just and true valuation is
to be put upon it, the same as if it were
unincumbered. The effect of this would
be to assess real estate as it has been
heretofore assessed, and TO EXEMPT
THE MORTGAGE FROM TAXATION.
The form of mortgage ALWAYS USED
contains an AGREEMENT on the part of
MORTGAGOR TO PAY ALL TAXES ON
THE MORTGAGED PROPERTY. It NAV
be safely assumed that this form would
not be changed in this respect if the bill
were to become law. Although the
bill contains the provision for separate
assessment of the interest of the mort
gao',r. WHEN AGREEMENT TO PAY
THE TAXES is NOT MADE BY THE
MORTGAGOR, this clause apparently
WOULD BE WHOLLY INOPERATIVE
because the MORTGAGEE will ALWAYS
HAVE THE POWER and the interest TO
EXACT SUCH AN AGREEMENT FROM
THE MORTGAGOR.
Another section of the bill declares
that it's provisions shall not apply to af-
feet mortgages executed prior to the
time this act shall take effect, which
time is fixed in the bill as January 1st.
1902. 1t follows. if the agreement to
pay the taxes is made by the mortgagor,
that mortgages executed prior to Janua-
ry 1st, 1902, ARE TO BE TAXED AS
PERSONAL PROPERTY ACCORDING
TO THE EXISTING RULES OF LAW,
NIlhH IhOOL -MADE OUbOEQUENI
TO THAT DATE ARE WHOLLY EXEMPT
FROM TAXATION, because the real es-
tate to be taxed at its true value both
before and after that date, and after that
date the mortgage executed is made
part OF the real estate for assessment
purposes. On the other hand, if mort
gage should be given after January 1st,
1902, and the agreement to pay all taxes
on real estate is NOT MADE by the
mortgagor. then the real estate is to be
assessed at its true value less the true
value OF the mortgage, but if mortgage
shall have been executed prior to that
date, aud none since, upon the same par
eel of real estate, it is to be assessed at
its true value without any reduction
whatever on account of the mortgage.
which also is to be assessed at it's true
value.
"In my judgment it is not permissible,
under the constitutional provision quo
ted, either to tax mortgages executed
prior to a certain date and to exempt
those executed after that date, or to tax
real estate upon which a mortgage has
been executed prior to a certain date
without any reduction on account of the
mortgage debt and to deduct from the
true value of similar property similarly
situated the value of a mortgage execu-
ted subsequently to such date in making
assessments for taxation purposes.
Respectfully submitted,
ROBERT M. LA TOILETTE,
Governor.