New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1919-01-30

IIaA great amount or prs perfsks ~
ortgaged for more than its assessed
yluation and the owners of theareaI
state escape taxation on the differ
ace unless the assessors are excep-
onally perspicacious.
Explaining his point, Mr.. Corbin
1 Us;
The statutes Of Connecticut
provide for the taxation of real
estate at it's fair market value
and exempt notes secured by
81 mortgage on Connecticut real
hesitate when the assessed value of
n the real estate is in excess Of the
Mamount of the mortgage. 1t is a
common occurrence to find prop
|aHerty mortgaged for more than the
assessed value and while the eX-
M cess of the mortgage over the as
Msessed valuation is taxable to the
#holder of the note in the town
s&vhere the mort gagged real estate
lS S located. unless the assessors
81 are particularly diligent and
zAs nave sufficient time to locate all
al UGH excess mortgages, the town
Suffers the loss of the income
which would result from such
q axation.
1 In the operation Of the so
hailed penalty tax, the town in
Which the decedent resided re-
|@Hs elves a partial REIN bursement if
8 ny invcntoricd property Of the
81 state has not paid taxes during
#ghe year previous. The penalty
lax law, however. does not pro-
Z ide reimbursement to the town
All or loss in taxes for more than
# We wears and taxa Bile mortgage
MI otes are not necessarily held for
&c complete span Of the indiVid-
# ais life and therefore are not
@ lways discovered ia the inVen-
ISL ory of the estate.
Tr Corbn then says that 'in towns
U ere real estate is very much un-
81 Valued for assessment purposes,
tax officials are negligent in Sc
@ing taxes on the excess of mort
y es over the assessed value of the
y estate: for which there is no good
d SON" He then suggests the pas
G OF q statute requiring property
# lers to specify the amount Of
rtgage on each item of real estate
M Jared to- the assessors as we'll as
Ealing the name and address Of the
BE der of the mortgage.
Though he does not recommend
u adoption Of a maximum tax rate
Mr.. Corbin discusses the subject.
purpose Of a maximum tax rate
10 prevent the dissipation of pub
8 funds through unnecessary and
- steful expenditures, criminal or
4 erwise. Some states have enacted
station that forbids the levy of a
81 her tax than a specified percent
OF the previous years levy Such
IS Rw has the approval of the Ma
ss al Tax Association, which devoted
N ear to investigating it's value The
II CHI would place "Iimitations on the
rowing power Of municipalities to
vent the practice of borrowing
hey for current expenses. In the
of an emergency, when money
| eeded in excess of the appropria-
S, application could be made to
e board organized for such a pur-
Is not believed such theory
4 lid appeal to Connecticut. 1t would
Il to centralize authority and after
III experience during the war-as
n essary as such restrictive ex-
q tents were-the public will not
tily bind itself further. If such
station were to be passed. it's
ption by local, rather than state
81 ernine bodies would be advisa BILE.
K ether the law has operated salts
#torily in other states is not men
he'd by Mr.. Corbin.
IN dvocates of increasing assessments
u manufacturing plants find en-
fragment in the abstract of tax
IA property, list of 1917, contained
mir. Corbins report, which shows
Killing houses assessed for S14,92S,-
and house and building lots for
Ae0s,313, total of s19,S36,31S,
#npared with the assessments ON
8tories, $7,474, 200. This situation,
never, does not exist in New Brit
\ alone