Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1911-05-27
MORTGAGES NOT
TAXED THIS YEAR

This wear mortgages will be deducted
from the assessed value of property, the
MORTGAGE paving taxes on same and the
mortgagor paying only or the balance.
. AS all illustration: If parcel of
property is assessed at 81 900 and is
mortgaged fer $500, each party to the
case the property is assessed at 81 900
and mortgaged for 81 900, the holder of
the mortgage will pay the entire tax.
This law was no doubt taken from the
old California law, and while on its face
appears to be equitable, as matter of
fact it has been proven a failure i'll the
State mentioned, for the reason that it
does not relieve the mortgagor of any
portion of the burden of taxation. In
terest rates soon adjust themselves in
such a manner that the mortgagor will
pay the full amount of the taxes in in
creased interest charges. California
formerly had the same law on its stat
utes, but after several Intellectual at
tempts at amendment repealed it alto
gether with the result that today the prop
erty owner pays the taxes on his real
estate ami the mortgage-holder pays on
the mortgage, privded he is unable to
dodge it,
Governor eddie evidently viewed the
act with misgiving, for he allowed it to
become a law on March q by withhold
ing his signature, with the legislature in
session, for five days. The law follows:
Section |. All taxable property must
be assessed at its full cash value Land
and improvements thereon shall be sep
arately assessed. mortgage deed of
trust, contract, or other obligation by
which a debt is secured, shall, for the
purposes of assessment and taxation, be
deemed and treated as an interest in the
property affected thereby, except as to
railroad and other quasi public corpora
tons. In case of debts so secured, the
value of the property affected by such
mortgage, deed of trust, contract, or OBJ
legation, less the value of such security,
shall be assessed and taxed to the owner
thereof, i'll the county, city or district in
which the property affected thereby is
situated. The taxes so levied shall be
lien upon the property and security, and
may be paid by either party to such
security; if paid by the owner of the
security the tax so levied upon the prop
erty affected thereby shall become part
of the debt so SECURED. If the owner of
the property shall pay the tax so levied
on such security, 1t shall constitute
such payment, a full discharge thereof.
II any such security or indebtedness shall
be paid by such debtor or debtors after
assessment and before tax levy, the
amount OF such levy may likewise be re-
tanned by such debtor or debtors. and
shall be computed according to the tax
levy for the preceding year; and every
contract by which debtor is obliged to
pay any tax or assessment on money
loaned, or on any mortgage, deed of
trust, or other lien, shall, as to any in
terest specified therein, and as to such
tax or assessment, be null and void.
Sec. ,. The owner of mortgage,
deed OF trust, contract, or other obliga-
ton whereby land or real property, stu
ated in this State, is made security for
a debt, and also the debt so secured,
shall, for the purpose of assessment and
taxation, be deemed to he the person or
persons to whom the security was given
i'll the first instance, unless it appears on
the record of the security that some other
person is the owner and all assignments
or transfers of debt secured as men
toned in this act shall, for the purposes
OF assessment and taxation, be null and
void. unless such transfer or assignment
is made i'll writing upon the margin of
the record of the security, and the nare
of the person to whom such debt is as
signed or transferred given; and in all
cases such debt and security shall be
assessed and taxed to the person or per-
sons WHO appear on the record OF SuCn
security to be owner or owners thereof;
and a mortgage, deed of trust, contract
or other obligation whereby land or real
property situated in no more than one
county i'll this State is made security for
the payment of a debt, together with
such debt shall be assessed and taxed to
the owner of such security aud debt in
the county, city or district in which the
land or real property affected by such
security is situated. The taxes so as
sessed and levied on such security and
debt shall be a lien thereon, and the
debt, together with the security, may be
sold for the payment of any taxes due
thereon, i'll the manner and with like
effect that real property or land is sold
for the payment of taxes.