The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-14
0 what changes would be desirable

to what changes would be desirable
in the law:
/. Distribute the receipts derived
from taxation of mortgage to the re-
venue fund Of the county Instead or
dividing it between the different funds
Of townships, villages and school dls-
tricts.
2. Graduate the tax to correspond
with the life of the mortgage.
8. Place a usury penalty upon the
mortgagee who forces the tax upon the
mortgagor.
The first of these recommendations,
as already stated, has been recommend
ed by the state tax commission, In
regard to the second suggestion the
commission answers that it Is not con-
sistent with the theory of the law
maintained by the supreme court IN
the case of Mutual Benefit Insurance
Co., vs.. Martin county. 1O4 Mimi. 49,
in which the court upheld the constt,
that the payment of the money requir-
ed by the act Is not a tax but a regis
tration fee for the privilege Of record
ing the instrument.
usury penalty should be placed on the
lender who forces the tax upon tho
borrower, the commission states h a
the mortgagor has practically always
paid the tax and that uSury laws have
never been effective, and by their ma
ture never can be. Furthermore. the
commission points out that a tax OF
| fifty cents upon each 500 of indebted
ness Is so small that 1t does not ordl-
| narily work any great injustice. The
tax commission estimated that the
average mortgage recorded In MIME
sofa during the year 1907-O8 was ABOUT
$1,000. The average tax would be only
one-tenth of one per cent a year. IT
| can hardly be commended that SO small
a sum for the privilege of placing an
investment on record is onerous.
In view Of the satisfaction with
regarded by the tax commission, 1t Is
surprising that the Legislature in 1913
should so radically amend 1t. BY
chapter 1863, laws 1913. the former re
| cording tax of fifty cents is changed
to fifteen cents upon each one hundred
\ dollars OF indebtedness If the maturity
of the mortgage is not fixed at a Date
more than five years after registration
If the mortgage runs more than nVe
years, the rate is fixed at twenty-five
| cents on each one hundred dollars OF
Indebtedness. This Is clearly an et'
fort to graduate the tax according &c
the life of the mortgage. In rcSpohse
to an inquiry regarding this amend
ment, Samuel Lord of the Minnesota
tax commission writes that the rcduc-
ton of the tax from fifty to htteen
cents was not recommended by th%
commission, and that the former tax OF
fifty cents per hundred was "a very
reasonable tax" Mr.. Lord states
however, that the lower tax lis salts:
factory to the borrowing public" anC
that he has heard no complaint from
others.
Chapter $50, laws 1913, provides that
the taxes paid to the county treasurer
shall be apportioned as follows: one
sixth to the revenue fund OF the coun'
ty; one-sixth to the state fund, and the
balance to be divided equally between
the school district and city, village OF
town in which the real estate mort
l rrnrn1 ia Gif1tuinH Mr ord writes
that this method of distributing tn
tax was enacted oil the suggestion O.
the tax commission and he states tina
it has met with universal favor. es'
pecially among county officials"
Chapter sos, laws 1913, makes 1T tn
duty Of the register of deeds to pre-
pare a list of all mortgages RECORDED
in his office on which the mortgage
registry tax has not been paid, who's
duty it is to place them on the tai
lists and they are then taxed as pro
perty. This Is clearly an effort to com
pei the registration Of all mortgages.
In conclusion I again desire to cal
attention to the need of a change II
the system Of taxing mortgages II
North Dakota. The exemption Of mort
cages from taxation has been urged a
There are constitutional barriers OF
the path Of exemption, however; and II
order to exempt mortgages from taxa
ton it is practically necessary to ex
empC moneys ana GREATS BeheralIy
Wyoming. in 1911, passed a law ex
empting mortgages only. The result
was a mad race among the assessor
of the different counties to leave Of
money and credits entirely. However
this objection is not found in the Wis
cOnsin plan which in it's practical ap
plication amounts to exemption.
Instead of e~xempting mortgages al
together, the Pennsylvania plan Of tax
ing money and credits at a low rat
might be suggested. This can be don
if the amendment permitting the class