Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-01-26

Wnne these comparisons are not
conclusive, l think they are certainly
illuminating and OF valuable assist
ance To us in the study OF this ques
ten. In Cumberland county the law
is best observed. In Androscoggin
county ii is practically a nullity In
many other counties its enforcement
is merely peffanCtory. The Tax Com
missione of 1908 estimates that about
ten Ter cent. of this class OF property
IS taxed. As to its enforcement by
the assessors in different counties, the
commission points out that in the
County Of FRANKLIN fifty per cent. more
is discovered than in An"roscoggin,
although one hundred per cent. more
mort Cages have been recorded in An
droscoGSin COUNT during the past ten
years than in Franklin county.
Doubtless the main reason for the
violation Of the law both by investors
and officials is that the tax on mort
cages is regarded rs confiscatory in
as much as this class OF property
yields very small annual income.
The counties in which this law is
enforced are in fairly Disseminated
against, and pay more than their just
the State because the burdens of ths
State are assessed upon the property
OF the State as a whole, and those
who honestly pay their taxes on a fair
valuation, to q certain extent pa
tie taxes which should be paid bv
those who by evasion, suhterfuge, and
the conniVapce of officials, escape the
payment of the taxes properly in
cumbent upon them.
But il is u condition. not a theory,
which confronts US. MoraliZing ana
theorizing are all We'll in the abstract
| hut what the people desire is prac-
teal solution of the problem.
The difficulties in the enforcement
| OF the law relative to the taxation
| of mortgages and money obligations
are deelned by many unavoidable.
| They are not confined to Maine. buS
exist and are as embarrassing, and
as troublesome III every state OF the
Union.
AS solution of this most diff
| cult problem three methods have been
suggested, viz:
| ~. The enactment of a law en-
tirciy exempting from taxation money
at interest. secured by mortgage OF
land within the State. Such is the
law in Arizona. Colorado, Delaware,
Idaho. Louisiana. Utah, ard Washing
| ton.
(O. A law similar to that existing
| in Massachusetts by which the mort
gage il faxed as joint owner with
| the n,ortgagor to the extent of his
| interest.
60. A mortgage recording tax in
| lieu of other taxation OF mortgas
credits such as is row to be found IN
the Statute books OF Alabama, Mime
sofa and New York.
The limits of this address will not
permit me to discuss at length each
of these propositions. Much can b.
| SAID in favor and against each; TINS
| IS natural. Nc law is perfect. 10 Sc
! cure the enactm mt of q law Simply
eXempting mortgages from taHato'
is not / think possible ir Maine.
! The Massachusetts law has many
reasons in its favor: it has proved
satisfactory in that state; its adop-
ton was recommended by our Tax
Commission of 1890. The objectionable
feature of the Massachusetts law
is that while the mortgagor Is taxed
only for his equity in the mortgaged
premises, and the mortgage on the
amount of the mortgage, i'll practice
the mortgagor pays both. A clause is
usually inserted in the mortgage pro-
viding for the payment Of the tax on
the mortgage. by the mortgagor.
Attempts have been frequently made
to secure the enactment of the Massa-
chusetts system in the State. but With
out success.
The Tax Commission. of 1908 recon-
,;mended a mortgage recording tax ~
| lieu of the present law. Therreasons
for this law.-are clearly and cogem ~
| ser forth in an article in the Political
Ia si,fI,eN. 1Gst, -tig