The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1916-03-15
MORTGAGE
TAX BILL UNJUST
Hon. Ben Johnson Attacks
the Measure
AND DECLARES PROPOSED LAW
"ViIIain0us" and Boon Only To
Money Lenders Who Are
Backing 1t.
WRITES TO THE LEGISLATORS


Washington, March Am attack
upon the mortgage tax measure APP
proved by the Louisville Real Es-
tate Board is contained in a letter
sent to all members of the Kentucky
Legislature to-day by Representa-
tive Ben Johnson.
A draft of this proposed bill was
printed in the real estate depart
ment of the Courier-Journal last
Sunday. and after reading it Mr..
Johnson declared that the bill is
"villainous,'' and he trusts every
member of the Legislature will aid
in its defeat.
That the bill, while posing as
remedy, for double taxation, really
is a boon to money lenders on real
estate. is stated by the Fourth Dis
trict Congressman. Mr.. Johnson's
letter to the Legislature follows:
"To the Kentucky Legislature,
Frankfort, Ky.-Gentlemen:
Last Sundays Courier-Journal
contained the draft of bill which
the Louisville Real Estate Exchange
will ask the present Legislature to
enact into law.
when one has carefully read the
bill he will not ask the question why
it was not introduced sooner. Such
a bill, if passed at all. can only pass
during the last hours of the session,
when it cannot be scrutinized.
"The general purpose of the bill
is to have money which is invested
in mortgages escape the greater part
of taxation which is levied upon 9TH
er classes of property.
"If l remember correctly the rate
of taxation in the city Of Louisville
I is $3.50 on each 500 of property
assessed. In addition to that $3.50
the county imposes a tax upon the
same property of about fifty cents
on each 500; and in addition to
! that the State imposes tax of fifty
cents on each 500. l am inclined
to the opinion that in addition to
the municipal, county and State tax
there are some special taxes, but not
being sure of this, / shall treat the
subject as if those three separate
taxes were the only taxes levied,
Therefore, the holder of real estate
in the city of Louisville must pay a
municipal tax of $3.50, county tax
of fifty cents and State tax of fifty
cents, making all told tax rate of
$2.SO ON each 500 of taxable prop
erty.
1.-THE bill which is now proposed |
in dying hours of the Legislature
undertakes to exempt mortage loans
of all taxation except fifty cents on
each 800. If the bill should pass
then the owner of real estate in the
city of Louisville would pay $3.50
tax, while the owner of the money
lent upon real estate would pay only
fifty cents, difference of $3.50 in
favor of the money lender as against
the real estate owner. But that is
not all. Under the last two lines OF
Section the money lent upon
real estate mortgage would pay tax
for only one year and thereafter
would pay no tax at all.
'If this bill should pass. the mon
ey lender would be enabled to lend '
money on a real estate mortgage for
fifteen years; he would pay a tax at ,
the rate of fifty cents on each 500
for the first year; and during the {
fourteen years would pay [
no tax at all. 9
Railroad companies frequently a
Issue mortgage bonds for fifty years 4
and the bonds so given would pay |
* small rate Of taxation for one r
\ lar only. and would not pay any /
AK whatever during the remaining =
years they would run.
|, f'Under one paragraph of Section v
!, a money lender could lend any
amount Of money and take a mort
rage upon piece of real estate of b
rifing value, with the rest of the h
security being made up of collateral. o
md thereby escape the payment OF I,
III tar over and above the fifty g
'ents. and at the same time escape Il