The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-02
ANOTHER MORTGAGE TAX BILL
1T rs 4 REVISION or TIE ONE IN
THE GOVERNOR HANDS.

meaaEo anu sent 10 Nut NatNtiu'I
Most OF the Changes Are INTENDED
. 20 Perfect Administrative Details,
! ALBANY, MAY l.-Senator Lewis, chair
/ man OF the Senate Taxation Committee,
/ tonight reported favorably a revised an
/ nual mortgage tax bill formulated on the
! lines of tho one now awaiting Gov. Hig-
| gins's action. The revised bill Is 10 be
passed and sent to the Governor under an
| emergency message.
Regarding bis talk with Mr. Van Ingen,
| representing the allied real estate interests
Of the State. on Saturday afternoon con-
corning the mortgage tax bill. the Cover
nor said tonight that he had not meant to
give the impression that he was In favor Of
a recording mortgage tax bill as one to be
favored above others. but only that he
would be glad to have such bill sent TO
him in connection with the other mortgage
tax bill, so that he might be enabled to make
a choice Of the bill which he thought best
Senator Lewis in explaining the changes
In the bill said
The Committee on Taxation and Re-
trenohment has teen impressed with some
Of the criticisms made upon the nortgage
tax bill, now in the hands Of the Governor
anu Willlb u mas uOb Itkdlhbh any Ol lllb
features criticized as fatal 1t was felt that
there was time enough at the disposal Of
the Legislature to permit Of making such
! corrections as seemed most desirable.
The changes embodied in the bill which
has been introduced tonight are largely
directed to the perfection Of the admins
trative details Of the bill, and no change
in the principle underlying the bill has
been made.
The first change OF consequence Is the
exemption of loan association mortgages
from the operation Of the tax where such
mortgages are given to secure the payment
of not more than three thousand dollars
on any parcel OF residence property.
The bill now provides that on all mort
cages recorded after July /. instead Of
June T. as in the former bill, the tax pro-
vided in the bill shall be imposed. This
amendment makes 1t unnecessary to set
in motion the machinery for the collec-
ton Of the tax until July, 1905. and makes
the bill in effect to provide only for the
recording tax for the first twelve months
Of its operation. After July !, 1905, the
annual tax provided for in the bill will
become due and payable on all Mortgages
recorded prior 20 that date.
Section POS has been amended so as to
provide that the State tax shall be binding
upon the mortgage only after the mort
gage shall have been delivered to and
accepted by him.
ITO meet the criticism that the tax cannot
be paid between July / and Oct /, in any
one year, and for that reason no decree
Of foreclosure could be entered during
the period from July to Oct. / an amend"
ment has been inserted which provides
that the mort gage tax may be pail
at any time after 9 O'Clock A. NJ. OF
the first day Of July Of each year,
and for the same reason, that at any
time between 9 O'Clock A. NJ. Of July l and
the date upon which the estimated tax on
any mortgage shall be finally established
proceedings may be begun for the cor
rection Of any such tax.
Section 3O2, relating to trust mortgages,
has been redrafted and simpifed. and,
it is believed, furnishes better provision
for the collection Of the tax on corporate
bonds than the corresponding section In
the previous bill. 80. s..-.
.fhe language employed in the former
bill, which declared that appeals should
be conclusive evidence Of the facts stated
therein. has been changed so as 70. make
such appeals conclusive only against the
appellant and those claiming through or
under him.
Appropriate language has been inserted
In Section 9O6 20 provide for the return to
the party entitled thereto OF the surplus
moneys arising from the sale OF the mort
gage security.
An amendment has also been provided
to the langla ge Of Section 306, under which
any County Treasurer or the Chamberlain
Of the city OF New York can become a
purchaser Of any securities sold for the pur-
pose OF enforcing the collection Of such
tax.
Section 3O7 has been amended 30 as to
provide that the share OF the CITY OF New
York Of the tax collected by the City Cham
berlain shall be paid into the general fund
Of said city and applied 20 the reduction OF
taxation.
Section Q has been amended so as TO pro-
vide that mortgages shall be held 20 be
usurious and void only when II has been
made to appear that there has been a con-
tract or agreement between the parties that
the mortgager shall pay the tax.
That provision Of section 307 which de-
cared that no court should interfere by
Injunction or otherwise. and that no review
by certiorari or otherwise should be had.
has been stricken out and an amendment
inserted that no action shall he brought in
resreCt TO the assessment and collection
Of the tax until after review or decision
by the State Board Of Tax Commissioners
as provided for in this act.
The provision requiring bond Of $780,
900 il stricken out and S25, 600 substituted.
II IL believed that with these amendments
and the minor amendments relating 10 the
administrative details the bill will meet