New-York tribune., 1903-02-26
| |ODELL'S MORTGAGE TAX.
FIVE MILLS IMPOSED.
Three Glasses Erempted-DiUision
of ReUenue.

Albany, Feb. 25.-The much talked of mort
gage tax bill is completed and ready for intro
ducton in the legislature. 1t is believed by Gov
ernor Odell and those who have formulated 1t
to be now in such shape TO disarm the major
itv of the criticisms which have been aimed at
the suggestions for mortgage tax bill. In It's
new form the bill provides for a tax OF nve mills
upon all mortgages which are of record IN the
various counties through the State The tax IS
to be levied and collected by the county clerk or
register and the mortgage itself is not 10 De
subject to deductions for debt, but TO be free
from, all other forms of taxation, both State and
local
The most important section of the bill. and
ono which will do away, it is believed, with
great deal of previous criticism. is the section
exemptins certain classes of mortgages. 1t is
calculated that there are in existence in the
state to-day exclusive of corporation mort
cages S3 OOOOOOO0O worth of taxable mort
cages The exemptions are as follows:
Mortgages of life insurance companies assre-
eating 1920 100000.
S461OO0,UOO.
MORTGAGES Of local building and loan assocla-
tions. aggregatin S25,OoO,OOo
This will leave to be taxed about S2OooVcooo
for the benefit of the State and the locdH'ieS-
The reasons given for exemptions OF lhe chai
ter above named are that the ssoclatlohS holu-
ing such mortgages represent the tnrlIt Oh tho0e
who must depend for a future competency Iol
their families upon their ability TO save throush
these organizations institutions whlcn tne
state has brought into existence, and which IL
properly guards and fosters
THE SUM TO BE OBTAINED
Exclusive, of these exemptions, at five mills
the proposed tax will produce annually slo'-
600 600 one-haIf of which, the Dill proNlueS'
shall be for the benefit of the State and one
half for the localities. The operations Oh tne
law would. therefore apparently increase the
local revenues by S5OOOOOo. but from this
amount should be deducted such tax as IS now
locally assessed upon mortgages The most con-
servative estimate, after investigation OF the
assessment rolls of various localities, places the
amount of personally thus assessed against
individuals at S1OOO00OOO the balance of the
s5s5 Oo2 312, the assessed valuation of all per
sonai property in the State, being assessed
against financial and other corporations AS
sun1ing that this represents mortgages alone
which it does not, it is argued that the personal
assessment rolls would not be reduced to exceed
S5OOOOOOO year by the enactment of the law
Even assuming that they will be reduced
500 OO0 OOl the loss of revenue from that
sourceNo the localities based on a 212 per cent
rate would be So 100000 Deducting this from
their apparent gain of S5.OOOOeo. this would
leave as the net gain to the localities S-,5oop-
OF this amount, New-York City will receive OF
ner cent. and the other localities in proportion
as their assessed valuations bear TO the total
assessment of the State.
II is proposed to divide this revenue in pro-
nortion-frst for school purposes in the counties
which have school districts, and second for local
and village purposes, in proportion as the total
expenditures for each of these purposes in the
town or township bear to the total for each par
ticular school district or union of such town
ships thus turning back to the locality this
revenue on plan similar to that of the bank
tax II will be seen therefore. that there is APP
narentlv no loss to the localities. but. on the
contrary a positive gain in the actual amount
receiI ed from the tax upon mortgages.
IT Is urged that. in addition to this. the bill
will make a certainty of the abolition of the
direct State tax, which will reduce the per
centage of tax upon every mans home and farm
IN such an extent as will compensate for the tax
which the borrower NAV be called upon TO
pay.
It has been the experience of other States
that the lowering of the tax rate brings with it
tbe lowering of the rate of interest. This has
been shown to be an absolute fact in the States
of California and Indiana. so IL is urged in be-
half of the bill that the borrower will have not
only the benefit of lower tax rate. but of a
lower rate of interest. which will more than
him for what at the moment may
anpear to be an increased burden upon his
property.