New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-23
THE SECURED DEBT TAX LAW.
Excludes All Bonds Covered by Mort
gage Recording Tax Law.

gage hecOruing Lax Law
To the Editor Of The Tribune.
| Sir: A letter appears In your columns
this morning signed H. c. NC" critics.
ing the wording and effect Of the new Sc
cured debt tax law. As the critic Is EVIL
IDENTIFY unfamiliar with the mortgage re-
cording tax law Of this state, his criticisms
are both unfounded and misleading. He
complains that the looseness Of wording
I'm this most important enactment Is DIS
tressing, for It involves In haze. wnich
easily could have been dispelled. the status
Of that large class OF corporate bonds Sc
cured by real estate mortgages recorded
In New York state"
The provisions OF the secured debt tax
law were drawn purposely TO exclude any
and all bonds that came under the opera
ton Of the mortgage recording tax law IL
this had not been done the new law,
through the provisions Of its Section sd
especially, would have resulted In num-
Der of cases I'm double taxation.
Your correspondent further says: Many
of our best houses have already Issued CIR
cuIars and sold corporate bonds, secured oy
mortgages recorded in this state, with the
/ nn0CrSldluIllB
rendered tax exempt by the payment Oh
this onc-half per cent tax IL these
many" bond houses have Issued any oohds
secured by mortgages recorded in the STATE
of New York with the understanding that
they could he made tax exempt under the
new securities law, they have displayed as
lamentable ignorance of existing statues
as your correspondent.
BY the provisions of the mortgage record
ing tax amendments to the tax law OF the
state. enacted in 1906. It was provided that
10 mortgage on real property would be re-
corded IN the state Of New York without
having the tax Of half Of / per cent
on the value Of the debts secured by the
mortgage. and the payment Of this tax
exempted from tho ordinary personal prop
orty assessment not only this mortgage, but
any bonds secured thereby. therefore
bonds secured by mortgages recorded in
the state Of New York since 1896 are al
ready and perforce tax exempt.
That law was further amended In lW'
70 permit the payment Of this tax upon an
entire series Of bonds secured by mort
gage Of real property IN this state Which
had been recorded prior to 1905. Last year
this provision was further extended by an
amendment TO Section est OF the tax law
SO that any holder of a bond secured by
mortgage on real property in this state on
which the recording tax had not been PAID
could take the bond TO the County clerk
or Register. and pay the one half per cent
fax and obtain the same exemption as Is
given to bonds when tho recording tax mas
been paid upon the mortgage itself
II your correspondent had read the spe-
cia1 message of Governor Dix to the Legs
lature. printed in fun IN The Tribune OF
July Il, he would have learned that the
now secured debt tax was intended to be,
and is, an extension of the principle under
living the mortgage recording lax. IL ne
Will read the new law carefully he VIII ma
that il not merely excludes speclhcalIS
MORTGAGES recorded in tho State or Ne"
York. but refers also TO certain sections OF
the tax law imposing special taxes with the
onerations of which the new law is not de-
signed TO interfere.
For the information Of your readers gen
orally, I will add that there ere Few
classes Of bonds that cannot be brought
under the operation OF either the mortgage
recording tax or the new secured debt tax
In the main, however, the new Ia"
will permit the owners Of securities not
covered by the mortgage recording tax to
secure a similar exemption by paying tax
NJ the same rate.
Your correspondent need not waste any
sympathy upon the unfortunate Control
Ter, since adhesive stamps, which VIII be
used for the purpose OF paying the tax,
are now being printed and the Controllers
Office will be open September l at No. l65
broadway. New York, and at Albany FOR
the recent Of taxes under THIS new law, ana
parsons presenting bonds and paying the
amount due will have this payment evil
denced by stamps which the Controllers
representative will afiix to the bonds. Or
If they do not desire to part with their
bonds for the length Of time needed, they
can obtain a receipt which will answer the
same purpose Of eydencing the payment
Of the tax and the exemption Of the secured
debt described I'm the receipt
A. c. PLEYDELL,
Secretary New York Tax Reform Associa-
ton
New York, Aug. %, 1911.
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