New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-02
NEW MORTGAGE TAX BILL.
Building and Loan Mortgages Er-
empted- statement by Lezcis.
IBY TELEGRAPH TO THE rR1puxE.I

lbf TO THE TRIBUSE.I
Albany, May 1.-The amended form of the
Mortgage Tax bill which has been prepared by
the Senate Taxation Committee was introduced
tonight This bill changes a number of the
administration features and exempts building
and loan association mortgages from the opera
ton OF the tax for amounts under $1,000. SEN
ator Page. Of New-York is drawing a bill to
carry out the suggestion of Governor Higgins
made to Edward Van Ingen that he would like
to have recording tax bill sent to him by the
legislature
Governor Higgins indicated to-day that he
desired this not in any sense as substitute for
the new bill introduced tonight but simply to
offer him bill between the two forms of mort
gage taxation. Discussing the amendments
senator Lewis, chairman OF the Senate Taxa
ton Committee. said tonight:
The Committee on Taxation and Retrenchment
has been impressed with of the Criti-
cisms made upon the Mortgage Tax bill now
In the hands of the Governor, and while it has
not regarded any of the features criticised
fatal it was felt that there time enough
at the disposal Of the legislature to permit of
making such corrections seemed most de-
sirable. The changes embodied in the bill which
has been introduced tonight are largely di-
rected to the perfection of the administrative
details Of the bill. and no change in the prn-
ciple underlying the bill has ben made. They
may be summarized as follows:
First-The first change of consequence is the
exemption of loan association mortgages from
the operation of the tax where such mortgages
given to secure the payment of not more
than $1,000 on any parcel of residence property.
Second-The bill now provides that on all
mortgages recorded after July 1. instead of
June l, as in the former bill, the tax provided
in the bill shall be imposed.
Third-Secton 295 has been amended as to
provide that the statement shall be binding upon
the mortgage only after the mortgage shall
have been delivered to and accepted by him.
Fourth-To meet the criticism that the tax
cannot be paid between July 1 and October
/ decree
Of foreclosure could be entered during the period
from July l to October l. an amendment has
been inserted which provides that the mortgage
tax may be paid at any time on or after July L
of each year.
F1fth-And that at any time between July 1
and the date upon which the estimated tax on
any mortgage shall be finally established. pro-
ceedings may be commenced for the correction
Of any such tax.
Sixth-Section No 3O2 relating to trust mort
cages has been redrafted and simpfed. and 1t
is believed furnishes better provision for the
collection of the tax corporate bonds than
the corresponding section in the previous bin.
Seventh-The language employed in the for
conclusive evidence OF the facts stated therein,
has been changed so as to make such appeals
conclusive only against the appellant and those
claiming through or under him.
Eighth--Appropriate language has been in
serted in section 3O6 to provide for the return
the party entitled thereto OF the surplus moneys
arising from the sale of the mortgage security.
Ninth-An amendment has also been provided
to the language Of section 3O6 under which any
Of New-York can become purchaser Of any
securities sold for the purpose of enforcing the
collection OF such tax.
Tenth-Section 307 has been amended so as to
provide that the share of the city of New-York
OF the tax collected by the City Chamberlain
shall be paid into the general fund Of said city
and applied to the reduction OF taxation.
DISQUALIFICATION 300 has been amended so
to provide that mortgages shall be held to be
usurous and void only when it has been made
to appear that there has been contract
agreement between the parties that the mort
gagor shall pay the tax.
Twelfth-That provision OF section BOT which
declared that court should interfere by in
junction otherwise. and that review by
certiorari or otherwise should be had, has been
stricken out, and amendment inserted that
no action shall be brought in respect TO the as
sessment and collection Of the tax until after
review decision by the State Board Of Tax
Commissioners as provided for in this act
Thrteenth-The provision requiring bond OF
$4,000 is stricken out and 900 substituted.
1t is believed that with these amendments and
the minor amendments relating to the admins
tratIve details the bill will meet with q larger
share of public approval.