The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-05
INPL4CEO or MORTGAGE TAN BILL.
Senator BOstwick says His Bills Would
Prodnce Great neNenue Without Injury.


Senator BOstWick says His Bills Would
Produce Great Revenue without Injury,
State Senator Charles +. Bostwick issued
q statement yesterday in which he declared
that there is no necessity for the passa &c
Of the Mortgage Tax bill and that the deficit
in the revenues of the State could be raised
by the passage OF the Bostwiok bills Gn-
troductory Nos. 473 and 47I OF the Senate.)
"The bill No. 47t = he said. provides for
the exemption from taxation of all existing
debts secured by morgag Of real estate
In this State and for the exemption OF all
debts secured by such mortgages executed
after July Of this year after payment of a
recording fee Of one half Of per cent.
The other bill, No. l7s, provides for the
exemption Of debts secured by the assign
ment in trust Of property other than real
estate In the State Of New York upon the
payment Of the tax Of one half Of per cent.
at the option Of any person interested.
II does not seem 20 be generally known
that these bills are now in the Senate and
have been reported by the Committee on
Taxation and Retrenchment.
@All the important commercial and real
estate organizations in the city of New
York. including the Chamber Of Commerce.
although adhering to their conviction that
mortgage debts should be entirely exempt
from taxation, have unanimously approved
the BostWiok bills.
When one considers the enormous
amount of revenue that can be obtained
bv the passage OF bill No. A7s, whereby
thetaxpayer pays at his option, freely and
voluntarily, It would seem that there should
he no question that this bill should he sub
stibited for the bill which has been con-
sidered in the Republican caucus and was
passed yesterday by the Senate.
1T Is designed TO affect all taxable sec,Iri-
ties which are not req i~tdto he recorded as
mortga ges In the State OF New York. Such
securities, although taxable, spay pTacu-
cally nothing 10 the treasury Of tie State
or any locality, although their value Is in
the billions, because they cannot be found
by the assessors The result is that the in
forest rate Is roeptionally dow and when
the securities Of some unfortunate and
honest person are assessed, a large part
OF his income y confiscated.
This bill will both relieve a great in
justice and produce great revenue. The
bill provides that the owner or any person
interested in the mortgage or deed OF trust
not required 10 be recorded in the State
may pay at his option for the use Of the
State a fee Of one half Of one per cent in
lieu OF all taxation.
There are billions Of securities subject
TO this tax dealt In daily in Wall Street
The advantage Of securing exemption will
be great enough to induce the holders Of
these securities 20 pay the tax as speedily
as they can. When similar securities are
hereafter issued bankers and fnanciers
viii gladly insist on the payment Of the
fee In advance so that the bonds may be
offered to the investing public and adyer-
tised as exempt from taxation.
Borrowers will be glad TO pay this tax
in advance because the bonds can readily
be sold for y per cent. higher in the market
and will yield them . good profit on the
tax paid. The leading bankers Of the
State and students Of taxation have fire.
quently testified to Gov. Odell and the
leaders Of the Republican party that this
bill viii produce an annual revenue for the
State OF millions of dollars. The revenue
from this bill and the recording Zee will
yield ample revenue 10 avoid the imposition
OF a direct tax upon the farmers Of the
State, OF the unequal, unfair and unscien-
tito mortgage tax and stock transfer tax
40 bitterly Opposed by Wall Street and
students OF taxation