New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-04
Bill to Impose Tax of One
Fourth of | Per Cent on
All Loan Papers Filed
NEW DEFINITION
FOR MORTGAGES
Would Be a MiSdemeanor
TO State Fictitious Con-
sideration in Deeds

One OF the most important OF the
score Of amendments to the New YORK
State tax law proposed By the state
Tax Commission would expand the
mortgage recording tax into a record
ing tax Of % cents for each 500 or
fraction thereof on all mortgages ana
conveyances of every nature and make
Il a misdemeanor 70 state hctltious
value or nominal consideration IN any
such paper.
Important provisions are those relat-
ing 20 definitions Mortgages" is eX-
banded 70 include every mortgage OF
deed Of trust which imposes lien on
or affects the title 10 real property
rotwith standng that such real pop
erty may form only part OF me seeu'-
itv for the debt or debts secured there
bv." Executory contracts are made
taxable on the amount secured by suc i,
contracts "The term conveyance snaI
be construed 20 include every insVru
ment or writing that may be reeorgec
under the laws of this state. Inc
words "and conveyances" are then adc-
ed after the word mortgage whereVer
IL appears in the present law. ana Di,e
following most radical clause Is aaueu'
"The actual consideration shan De eN-
pressed in each and every conveyance
and any person or persons shaH DC
daau1ed guilty of a mlsdemeanor WIN
expresses or causes 20 be expressed III
such a conveyance fictitious Va4ae VI
nominal consideration"
I, D. Woodwork, Of Rochester u,
rector of the new Realty Taxpayers
Council of the State Of New YORK
mskes the following personal Statement
on the bill: .or
"This bill raises several points ior
every person interests IN any marhet
in real estate and will receive the cary
attention OF the tax experts cohheCIsu
Nth the Realty Taxpayers Council OF
the State Of New York Tor several rea-
cons of which the following are en-
titled 10 special consideration:
aTba nroposed tax on conveyances -
MT advanced as a revenue measure a.
though Il is an expense 70 the rea'ty
oyvIers The recent joint legislative
committee on the taxation, or whlch
senator Ogden Mills was chairman re-
,or-ed that no additional tax burden
on real estate IS feasible. -.
"As revenue measure II IS oDJec-
tionable that IL does not attempt or
nre.end 20 reach a new source OF STATE
revenue. but superimposes a new de-
nand unor the class OF property whlcn
now pays over 80 per cent OF state ana
local taxes. Before realty Is e4l.eu
mon for further contributions 20 the
nrblic treasury It should be ascertalned
nat the deficiency in public revenue
cannot be supplied from sources OF IN
come and profit which DO not now con-
tribute according 20 their ability.
..The phase OF tax admin ia'loH
raised bv this bill is not new. Assessor
have always believed that II they coulu
see the actual consideration stated IN
deed, there would be no further din'-
eultv in determining values OF really
Sale prices are seldom accurate cr,-
+or,one of actual value, as IS well
known 20 professional real estate men
and this Is we'll recognized by tne
co,-.s Market values are purely mat
ters Of opinion, and is there ever sale
made az a price which even the parties
thereto consider 10 be the fair average
market value? In short, sale prices are
dangerous guides to market value when ,
used by any person who cannot quailiy
20 testify in court Of law as 10 such
market value. -
las affecting property rights, 5 there
any possible public advantage IN de-
handing a citizen 20 publish the cost
nrofts and losses in his business tran
sctions9 Even in stock Exchange
.rsnsactions. which are referred 10 by
advocates of stated considerations, the
particular shares or the particular
owners are not made public.
shall De glad 10 hear from any per
son or organization interested m the
matter and will send copies OF the PHI
upon request 20 my Rochester once