The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1903-06-12
Mortgage Taxation

That astute Madison lawyer Dan K
Tenney in scathing review of the new
mortgage taxation law calls it a colossal
humbug. Here is quotation:
''The governor, ever since he became
such, has been diligently endeavoring to
get law enacted providing that when
real estate is mortgaged it shall be as
sessed for taxation to the holder of the
mortgage, to the extent of the amount
due thereon, and only the remainder of
the value to the owner of the property,
and that the MORTGAGE and the owner
shall each pay share of the taxes &C
shall fail to pay the share of taxes as
sessed to him, the owner pay them and
set off the amount, as payment, upon
the interest or principal due on the
mortgage. We must at least pretend
that we are going to relieve Goods pa
tent poor" in some way The legisla-
ture, after much contention, has passed
the coveted statute with great unanimi-
ty. Every mortgage on real estate ever
executed in this state contains a provis-
ion, substantially, that the mortgagor
shall "pay all taxes and assessments of
every nature that may be assessed on
said premises" AS to all mortgages ex-
listing before the passage of this new law
the provision above quoted constitutes
an irrevocable contract that the mort
gagor shall pay "the taxes of every ma
turee, assessed on the property mortgage
ed. Such was not only the intention of
the parties when the mortgage was
made, but it is clearly expressed therein.
The legislature cannot impair the obi
cation of such contract by any statute,
however skillfully devised, nor can it
provide for applying upon the mortgage
as payment a tax receipt Or anything
else other than lawful money rendered
to the holder. Instead of exempting
burden of taxes to the extent of the
assessment of the interest represented
by the mortgage, it practically exempts
the holder of the mortgage altogether
and leaves the poor mortgagor worse off
than he was before. at keeps the word
of promise to the ear, but breaks it to
the hope" AS to mortgages hereafter
to be given, every one will contain a
clause more specifically providing that
the mortgage shall be relieved of any
tax which may be imposed upon his
mortgaged interest The fooIishness of
this new enactment was we'll understood
by many who supported it. Otherwise,
it would not have passed. They wanted
to cater to the popular clamor, so-called,
for taxing mortgages. But instead of
relieving property owners, especially
mortgagors, from part of their taxes,
as it processes to do, it will practically
exempt all mortgages from payment of
any tax at all upon them and will in
crease taxation on real estate to make
up the deficiency. BY thus exempting
the mortgages, as such, from taxation, it
will increase the amount of assessa BILE
property in the state about seventy
three million dollars. The date has not
yet been announced for the grand jolli-
fication and barbecue to be held by the
money sharks who hold the mortgages,
nor the day of fasting and humiliation
which will be suggested to the poor
mortgagors, next winter when they find
that the great reformatory measure
Internationally advocated to reduce
their taxes has actually increased them"