Arizona republican., 1922-02-12
REAL TORS CONCERNED
IN Projected GOVT
BANK TAXATION PLAN

Realtors in the valley will un-
doubtedly be interested in the fol-
lowing article regarding bank taxa
tion from the secretary of the Mich
igan association:
There is now before the state of
Michigan and the federal government
a, matter in which Realtors should be
distinctly interested. Interest should
be displayed at an early date.
Under the terms of the national
banking law, states are given the
authority to tax shares of stock of
national banks but the tax against
money invested in bank stock must
not be taxed at a higher rate than
money employed by individual citi-
zens in other ways. Bankers declare
that in many states this provision
has been violated and recently a case
originating in Virginia was carried
to the United States supreme court
where a decision in favor of the
banks was gained The court said
that stocks of national banks could
not be taxed at higher rates than
other money capital coming into
competition with banks.
"In Michigan a tax OF one-half of
one per cent is levied against mort
cages at the time they are filed.
Some declare that mortgaged money
is in direct competition with monies
of national banks which are assessed
at fun value and taxed oil the ad
valorem basis. Records of the state
banking department show $S4,176,30O
in assessable national bank stock in
Michigan and SS1 1,561,190 in assess
able incorporated state bank stock
in Michigan. Some declare that since
na nfef 11a SIrn OnnTf the
tax against national bank stock is
not collectable in Michigan because
OF the existing mortgage tax law.
State bank stock. however. is tax
able and this leaves an unfair COM
petition between the stocks of state
and national banks.
"A meeting between members OF
committee OF the American Bankers
association and several others inter-
ested, in taxation was held in Wash
jHgton recently for the purpose Of
discussing the situation brought
about by 1.-The supreme court decision.
After a lengthy discussion both fac
tions agreed to an amendment to the
national banking laws which would
provide for the taxation OF national
bank stock at an annual sum not
greater than the tax levied against
character state banks, trust COM
panies and the like.
THE amendment agreed upon
introduced in congress soon. If this
either has been introduced or is to be
passes the situation in Michigan will
be cared for, it is stated. Governor
Groesbeck has been quoted as say
ing that in the event the amendment
is not adopted in Washington, either
the tax received from national bank
stock must be lost or it will be nee
essarv TO call a special session of
| the legislature for the purpose of re-
pealing the present mortgage tax
| law This action automatically
would place mortgages on the gem
eral property rolls and subject them
| to the tax now paid on real estate.
None knows better than the real
| estate broker the present shortage OF
| money. The broker also is aware
that hundreds upon hundreds of
thousands Of dollars are outstanding
! in past due mortgages. Repeal OF
| the mortgage tax law not only would
paralyze the building and real estate
| markets but might be expected to
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