Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1913-02-28
THE MORTGAGE FEE
BILL PASSES HOUSE
Provides Is Cents for Each Yearfo
Each 500 Shall Be Paid When
Mortgage Is Recorded.

Topeka, Feb. 26.-The mortgage
registration tax, turned down by the
legislature four years ago and two
years ago, was passed by the house
yesterday, and having already been
passed by the senate. it is about
ready for the signature Of the Cover,
nor. The vote ON final roll call wsE
Is to 81. Many efforts were made to
amend it, but only few of the
amendments offered were incorpo
rated into the bill and none of them
changed it materially.
As passed, the bill provides for a
mortgage registration fee or tax Of
25 cents per 500 per year, and ex'
empts mortgages from all other forms
of taxation. Its friends and its en-
emies differ as to the effect it will
nave in actual operation.
It's friends claim for it that it will
bring 100000 additional revenue to
the state, counties and municipalities
every year. They claim it will bring
in revenue from mortgages on Kan
sas property held outside the state.
The enemies OF the bill maintain
that while it will bring increased rev
enue to the state and municipalities,
the added cost to the money lender
will be more than made up by an in
crease in the interest rates and that
the borrower will foot the bills.
Students of taxation questions, mem
bers Of the house, hold the opposing
views and since the bill passed both
houses, the state at LANCE will have
an opportunity to determine which
set Of men is right. Speaker Brown
voted for the bill, but declared he
was doing it against his own judy
ment, that he was doing so because
his party wanted it and because he
never failed to respond to his party .
wishes.
Must Pay In Advance.
The bill exempts from its provis-
Ions all mortgages held by literary,
scientific, educational or religious or
CARNATIONS. It provides for a regis
tration tax of 25 cents per year per
800, payable at the time the mort
gage is filed for record. For instance,
if loan is made for five years UNI
would be $1.25 per 500 at the time
the mortgage is filed. The fee is
not payable annually. And, accord
ing to Robert Stone, of Shawnee,
and others who opposed the bill, if
the loan should be taken up in two
years the fee for the remaining three
years, or Is cents per 500, would be
lost.
The effect of this provision" de-
clared Robert Stone, on the floor,
will be to cause money loaners to
leave out of the contracts the pro-
vision allowing the borrower to pay
the principal or any part of it at any
regular interest paying period"
Under the provisions of the bill the
money loaner must pay the registra-
ton fee and if any device is used
whereby the borrower is required to
pay it, the borrower is authorized to
deduct the amount from the princi-
pal when he makes final settlement.
However, this provision does not APP
ply to an innocent" purchaser of a
mortgage and the men who fought
the bill maintain that leaves a loop
hole.
Apportioning The Fees.
The fees collected in this manner
are to be apportioned among the diff
ferent municipalities, the same as if
they were made up Of taxes ON the
real estate described in hte moutgag-
es except that 10 per cent is to go
directly to the state treasurer.
A renewal of a mortgage requires
the payment of the same fee as in
the beginning. ALI mortgages are ex
empted from other forms Of taxation
The tax experts estimate that taxes
are now paid on 5,795,195 Of
mortgages in Kansas and that the
revenue from this source is $4,000
year, approximately. The friends
Of the mortgage registration tax law
hold that on the same basis the law
will bring in s165,OOO year.
W. R. Mitchell, Of Jewell county
made an effort to amend the bill
with a section which would have set
tied the question Of double taxation
but 1t was defeated by a vote Of 81
to Il. It provided that the person il
whom the title to property lay shoul'