New-York tribune., 1903-04-08
MORTGAGE TAX REFORM.

Governor OdelIs arraignment In his special
message of the present system of taxing mort
cages is none too strong. Something must De
done AS he says, the necessity for a more
equitable system Of taxation for the total
exemption Of mortgages is more apparent to-day
than ever before. For the last four years the
subject has been in constant agitation. Nari-
GUS new laws have been threatened, which
made Investments uncertain. Assessors have
been stirred UP to uncommon activity, with the
result Of extending the evil effects which are
inseparabe from the operation of the present
law Altogether, for the sake of both lenders
and borrowers, for the sake Of justice to all
classes, particularly the widows and orphans
whose incomes are now practically confiscated,
for the sake Of encouraging honesty and good
citizenship it is clear that the present inlqutous
law under which a few mortgages are heavily
taxed and the bulk Of them escape ought at
once to be changed.
Governor Odell has in his three annual mes
sages proposed three plans to do away with
this evil and frankly says that the last one. 10
imnose an annual tax of mills mort
cages was the worst of the three, This was
natural He first advocated exemption, which
undoubtedly is correct in principle, but with
present prejudices it evidently cannot be Sc
cured. Last year he proposed D mill re-
TT
Looked for a time as If this might pass. This
year. still intent on abolishing the monstrous
inequality of the present law, and also moved
by the necessity of raising more revenue ne
made the further concession to the friends OF
the present system embodied in what he calls
his worst plan as the liquor tax has since been
increased to provide most, if not all. OF the
needed revenue, he is ready again to urge the
recording tax plan of last year. II that does
not suit he would consent to exemption or an
annual tax
He is Justly impressed by the absolute wrong
of the present law, but think underesumates
the force Of the objections to the annual TAX
as an alternative. He compares the burdeh II
would place private property with tnhL no"
horne by corporations as shown by the ratio or
taxes and dividends. but In any such estimate
bond interest as well stock dividends should
be considered, and then it viii be seen that pIl-
yate property is not so favored in proportion
to its earning capacity. He also says mat the
borrower need not object to an annual tax, for
under the tax clause of mortgages he is haple 10
the higher tax under the present law. That
may be true in some cases. but the common TAX
clause here merely provides that the borrower
shall pay any tax imposed by new laws, ana II
the lender gets caught ordinary personal tax
alton he himself is the sufferer. Indeed, as per-
sonal taxes are levied not on specinc property
but In a lump sum. it would be difficuit for
lender to charge it up In due proportion 10 par
ticular borrowers when he doubtless had other
personal property, like furniture and money.
AS the annual tax is confessedly the worst OF
the three plans to do away with present evlis'
we think the legislature would wisely lay II
aside, even though the Governor does think IL
better than nothing, and return to the fair com
promise Of the recording tax. We know that
some rural counties will regard this as sac
rifce. particularly If the tax is MADE rs low
as or 21a mills. but we think that they are