The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-14

of taxing mortgages. AT present, nine
states, either by law OR in practice,
exempt mortgages from taxation; they
are Arizona, California, Colorado
Delaware, Idaho, Louisiana, Utah,
washington and Wyoming. And as
already stated, Connecticut, Massa-
chusetts,. New Jersey and Wisconsin
exempt them in effect.
pass now to the consideration of
the mortgage recording tax. The
states assigned me for discussion re-
strict me to the discussion of the re-
cording tax in Minnesota. / shall take
the liberty, however, to briefly discuss
This plan In Alabama and New York.
Inc mortgage recording tax in lien
or other taxation of mortgage credits
IS now found in Alabama, Michigan.
Minnesota and New York. Virginia
IS addition to taxing MORTGAGES as
general property, has a small record
ing tax for all deeds including mort
cages.
In Alabama, the tax is at the rate
VI 10 cents on each 500 Of indebted
ness secured by a mortgage, deed of
trust' contract of conditional sale, or
other instrument in the nature of q
mortgage-executed so as to convey
real property or any interest in real
property or personal property" with
IN the state. The tax must be Maid
TO the Judge of probate, who is re-
CURED to make a note OF the nav
ment on the original document and
this entities it to record. The record :
ed instrument and the debt which If
evidences are exempt from further
taxation. 1t a part Of the real estate
~ located outside the state the owner
u t1e mortgage may petition the
state BOARD OF equalization to ascer-
tain the portion of the debt for which
the recording tax Mould he maid ~
Alabama, or he may pay the tax for
the whole debt, and after RECORDING
the mortgage. petition the board to
ascertain the arnoun Of refund which
ne. should receive. The act state
that the tax shall be paid bv the lend
er. The proceeds of the tax are Ovid
ed as follows: The probate Judge ra-
celves a fee of 5 per cent, and Of the
remainder the county receives one
third and the state two thirds.
The following criticisms have been
made of the Alabama law: -
Ffrst-It does not satisfactorily
provide for the taxation Of bond is
sue mortgages.
~second--It does not allow the vollln-
tary payment Of the tax on MORTGAGES
recorded prior to the time when the
act went into effect, although it an
plies to extension and renewals. -
Ihlrd-The rate is too low.
F~ourfh--The tax is no graduated
according to the life Of the mortgage.
In spite of these criticisms the Ala
Parma tax commission reports that the
law is working very satisfactorily to
al, The results In raising revenue
are considered here by the friends Of
the mortgage tax as the best evidence
OF the popularity Of the law and Of it's
enforcement. It is a law that is self
enforcing, n that is seldom dodyed
by even the most hardenen dodger.o
The act which led to the New Y6rk
mortgage recording tax law was chap
ter 729 Of the acts Of 1905, which as-
tablished an annual tax Of 60 cents
each 800 OF outstanding princi-
pal of all mortgages, except those, held
by exempt institutions. An ~elahorate
machinery for the collection Of me
tax was provided, OF which the req
istry of deeds was the principal part.
Except where the debtor was 4 cor
tporation, contracts to shift the tax
upon the debtor were declared void.
The separation OF state ana local
revenue vas the end sought and tie.
state needed the Indirect revenue that