Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-06
DOUBLE TAXATION IN NEBRASKA.

In his inaugural message Governor
Sheldon emphasizes his determination
to continue the efforts which he previ
ously put forth as state senator to
abate the fragrant double taxation of
credits and mortgage securities in
fiicted by the revenue laws of Ne
braska as they now exist.
The governor plainly and pointedly
says that there is no good reason why
piece of real estate encountered with
mortgage should be burdened with
greater taxation than a piece Of real
estate of the same character and value
that is not mortgaged, yet such is the
consequence of our present tax system.
The discrimination becomes even more
rasping as between resident and nom
resident owners of mortgages, the ad-
vantage being given now to the capt.
talist living in another state as against
the capitalist of our own state.
The same principal holds with refer
ence to secured credits of all kinds,
the security representing in fact part
ownership in the property by which 1t
is secured, and the separate taxation
of the security and the property both
at full value is double taxation with
out warrant or excuse.
This question was up before the
Joint committee that framed the pres
ent revenue law four years ago, at
which time the editor of The Bee ap-
peared at the public hearing and urged
precisely what Governor Sheldon is
now recommending. He presented to
the committee draft of a section COW
ering the taxation of property and in
debtedness secured by such property
as follows
Where any property within this state IS
mortgaged conveyed or pledged for secur-
| ity OF a loan or debt then owing, the said
property and the notes, bonds, mortgages,
deed of trust, trust deed. contract or other
conveyance shall be assessed as a unit,
and as one and the same, and as OF one
value, and as the value of the property so
mortgaged pledged or otherwise conveyed
only, and any such notes, bonds mort
BdbeSt uttus Vi trust lluSl ht6uSs tDnlIdtls
or conveyances shall not be otherwise re-
turned or assessor provided, that in no
case shall any property so mortgaged, con-
veyed or pledged be assessed for less than
the market value of the loan or debt then
owing for which It is security
| If the owner in possession OF any prop
erty within this state so mortgaged, con-
! veyed or pledged for the security of loan
or a debt then owing fails or neglects to
pay the taxes thereon or permits said prop
erty to be sold for taxes, the mortgage or
holder Of any conveyance or pledge for
which said property is security may pay
such taxes or redeem said property so sold
| for taxes; and on payment Of any such
| bond mortgage, note or debt, or any &C
tion 10 enforce the same, the taxes so paid
may be demanded. with interest thereon
! at the same rate specified In the mortgage,
/ note or conveyance, and the same shall be
included In any judgment rendered thereon
| and any taxes so paid by the holder of the
mortgage, note or conveyance shall be a
! lien on the property by which It is secured
| until the same shall be paid.
In the framing of the present reve-
nue. law no good reason was advanced
against making this proposed change
in fact, no reason at all except re-
luctance to incorporate into the reve-
nue. law revision any noteworthy de-
parture from the methods of assess
ment and taxation of such property
previously pursued. Governor Shell
don is on the right track in urging re-
dress of this admitted tax evil and It
is to be hoped he will keep at it until
the object is achieved.