Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1906-02-23
DELINQUENT CERTIFICATES.
A Question OF Double Taxation Presented.
BY BYRON MIILETT,

BY BYRON MIILETT.
/ Under the direction of the stat,
Tax Commission, efforts are made b,
, officials of various counties in I'll,
State to collect taxes from the holders
or owners OF delinquency certificate
before the foreclosure thereof in addi.
ton 10 the taxes assessed, against aud
levied upon the land designated ir
these certificates. AS far as | have
been advised, the Attorney Genera
has not passed upon this question
Heretofore, the policy has been other
wise; consequently, the courts have
not been called upon to pass upon the
legal phases involved in this PROPOSE
ton. Some Of the prosecuting attor.
neys contend that the question pre-
sented is similar in legal effect as to
the taxation Of real estate mortgages
and also the lands embraced therein.
There are, at least, two answers to this
position: First, A mortgage is a lien
created by contract between the mort.
gagor and mortgage, while tax lien
is one which arises by operation of
law. The Attorney General holds
that municipal bonds are not taxable
on the theory that a political, or q
public corporations property, is exempt
under the law; that as a logical and
necessary conclusion, the State, county
Or municipality can not legally dis
credit its paper which represents its
own resources, by the process of taxa
ton; or, in other words, levying a
tax upon its own interests under exist
ing laws, as interpreted by long usage,
and the legal presidents cited in his
opinion from the decisions of courts in
other States. This ruling would seem
to be broad enough to include State
and county warrants, and certificates
of delinquency, when We come to in.
woke the doctrine OF reasoning by
analogy; for if such paper does not
represent the resources Of a public
corporation what do they represent?
Secondly, If we place real estate
mortgages in the same footing as tax
liens embraced in these certificates,
we find that under section three of
our revenue law, purchase money
mortgages are specially exempted from
taxation. The certificates issued by the
county represent the same considera.
ton, why exempt the purchase money
and mortgage and tax the certificate?
How can it be done without doing vio-
lence to the language of this statutef
Mortgages have pretty generally
been omitted from the tax rolls, for
counties deemed it advisable
to keep valuations down in order to
avoid paying too much State tax; for
if one county should place these secur.
tiles on its rolls and others should not
do so, the discrimination would become
very apparent.
Not long ago the daily press record
ed that certain money loaners in this
State objected very forcibly to listing
for taxation, threatened
foreclosure proceedings, If
the Tax Commission persisted in it's
course, thus making the members un-
popular among citizens of the State
who we're compelled to borrow money
on such securities. What the outcome
may be OF this agitation remains to be
seen?
OF course, as a general proposition,
there is little sympathy manifested
towards purchasers of these certif-
cries. Many people think those indi-
viduals are greedy; seek to take advan-
tage of . mans necessities, when he.is
unable TO help himself, collect q high
rate of interest and oftentimes get
property for nominal con-
sideration; that, therefore, this class
Of individuals ought to be made to pay
for their greed on general principles,
regardless Of any legal proposition
which may be involved. But the
trouble is, tho large investor will con-
test and avoid payment, while the
small fellow may pay rather than 60
to law. Then again, there is dis
between the resident and
holder, the latter party
cannot be reached under the law as it
now stands. There are some holders
who contend, if they had known about
such tax when they made their pur-
chases. they would not have bought
the certificates, thus depriving the
county in the matter Of collecting its
pro tanto.
Again when levies are made which
cannot be collected, and warrants are
issued against the same, . deficiency of
funds arises with which to meet pay
ment, which means the payment OF
interest on the overdue paper, to say
about the expense incident to
placing and extending upon the tax
rolls improper matters, which must
thereafter be ignored or eliminated.
The best solution of the whole pro
position is to reduce public expenses,
thus make lower levies to meet the
and reduce tho necessity for
issuing certificates of delinquency to a
This can only be accom-.
plished by intelligent cooperation
among taxpayers. We must have cor.
rect thought before we can get correct
action. 1t is the old story, the folly OF
man ruins him; he can only be saved
by his wisdom, acting up to his ideals.
GOOD thoughts are no better than
good dreams. unless they be executed"
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CHINA MAY HAVE TO Be PLACED ON