The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-04-06
Attorney Doubts Intent Of The
Legislative Act
WOULD MEAN DOUBLE ASSESSMENT
HOLDS DEPUTY ATTORNEY HER.
AID OF KING COUNTY IN
RECENT OPINION.

The question of taxing mortgages
has been taken up by the county asses
sor of King county and several days
ago he asked for an opinion from the
county attorney of that county on the
subject. Deputy Attorney Herald gave
the following:
John w. Peter. County Assessor:
Dear Sir-In answering your in
quiry concerning the taxation Of mort
cages in this state, it appears to me
that your question involves a matter
of procedure in your office rather than
of substantive law. l desire to say
our laws provide for the taxation Of
all property. real or personal within
the state, except that which is ex-
pressly exempted, and, if a mortgage
is a thing of value Independent of the
obligation, the payment of which it Sc
cures it is properly taxable to such
value. But 1 doubt if the legislature
intended a mortgage as SUCH to be
taxable.
"Pierce's Code, section 1893, provides
that in taxable personal property are
included all credits, including accounts
judgments, chooses in action, and all
other debts Of whatsoever kind and
nature due or to become due whether
secured or not by mortgage or other
wise)."
Mortgage Is Merely an incident.
'"The credit or obligation. the pay
ment of which is secured by mortgage,
is the principal and substantial prop
erty which is by express law taxed,
and the mortgage is merely an Incl
dent to it. making the obligation more
secure and perhaps more valuable, but
of little or no value standing alone. If
the credit or obligation is taxed, the
mortgage is in effect taxed as an Incl
dent to such credit or obligation. For
this reason 1 say your inquiry raises
a question of procedure only. The
state requires no more than the tax
alton of all property once each year.
and it Is your duty to discover as
much of that property as possible by
the methods provided by law. 1t is
the duty of citizens to truthfully list
under oath their personal property,
including credits. If any citizen makes
a false list he may be criminally pros
ecuted.
IF you have properly listed the
credits of citizen, you have no legal
right to also tax the mortgage secur-
ing that credit unless you can find
substantial value in it independent of
the credit which it secures.
The California Law.
This question was raised in the
case of People VS.. Whartenby, SO Cal,
461. The tax law of California pro-
1t taxes all money at interest secured
by mortgage or otherwise In inter-
preting this provision, the court spoke
as follows:
"Is it the mortgage itself which is
taxed as a chose in action, or is it the
debt secured by the mortgage? Fortu-
nately the statute relieves us from
embarrassment on this point.
".Section five of the revenue act, in
enumerating the property subject to
taxation, specifies, among other clas-
SEES of property. money at interest
secured by mortgage or otherwise"
1t is the money at interest which
is taxed, whether it is secured by
mortgage. or not at all. The tax Is
not levied on the mortgage as such.
but on the money at interest" and
the additional words, secured by
mortgage or otherwise" are mere sur
plusage.
Confusion Would Be EntaiIed.
"Other authorities coming from Sc
attic in which mortgages are regard
ed as personal property, as in this
state have come to the same con-
clusion as the California court AS
matter of practice. a great deal of
confusion and uncertainty would be
entailed by the introduction OF the
system of taxing mortgages as such.
For instance, the records would not
show whether the mortgage was held
by a nonresident or was a purchase
money mortgage: and in either of such
cases the tax would not be lawful.
The record would not show any pay
ment upon the debt secured and
citizen might be taxed upon the full
face of his credit a substantial por
ton of which had been paid. Again.
the citizen would perhaps be deprived