Morgan County Democrat. (McConnelsville, Ohio) 1886-1943, 1927-02-24
More Taxes On
Homes-Fa Farms?
Mortgage Companies Are Asking
Ohio Legislature to Pass
Mortgage Recording Tax.
AIMED AT REAL ESTATE
Measure Is Offered After Official
Legislative Program Fails To
Include Mortgage Tax.

Columbus, Ohio, (Special-Farm
ers and home owners, already stag.
gering under excessive taxes, will
have an added tax burden to carry
If the proposed mortgage recording
tax bill Just introduced in the Ohio
House of Representative is permit.
TED TO become a law. This measure
is so drawn as to afford taxation
relief to WEALTH" but places adj
ditional taxes upon those least able
to pay, for it's puts an excise tax
on nlortgaged property, which tax
will be passed on to the mortgagor
or property owner.
The mortgage recording tax pro
posal originated with the Mortgage
Association OF Ohio, and was SUBJ
mitted by this organization to the
Legislative Committee on Economy
and Taxation which refused to in
ciude it in It's tax revenue produc-
ing program. The Legislative
committee s tax increasing program
lncluoes only an increase Of fran
chise and excise taxes which apply
to big business" Following the
failure of Ohio mortgage companies
to get the Legislative Committe on
Economy and Taxation to sponsor a
mortgage recording tax, such pro-
posal was introduced at the in.
stance OF this organization as their
own measure. In other words Ohio
mortgage companies, through the
mortgage recording tax, would sad
die more taxes on the small home
and farm owner, in order that
mortgage companies might have
tax exempt mortgages to sel.
Protecting Home Owners.
Ohio building and loan associa-
tlons, which finance approximately
80 per cent Of the homes owned in
Ohio and have loans of more than
Sl5,0OO,0O0 on Ohio farm property,
are opposing the mortgage record
ing tax in an effort to save from
additional taxation the man who
finds 1t necessary to mortgage his
property.
The proposed measure would
nearly double the cost of obtaining
loans on real estate. 1t proposes a
tax Of one per cent on mortgages
maturing after 10 years and one
ha1f per cent on mortgages matur-
ing in less time. Such tax, of
course, would be passed ON to the
borrower. Revenue SO collected
would be distributed as follows: 80
per cent to the general revenue
fund of Ohio Tin other words real
estate will be made to bear more
Of the expense of the State Gov
eminent, while only 10 per cent is
to go to the local general taxing
fund and 10 per cent to the local
school tax fund. This would mean
a loss of local revenue with the
ultimate result according to taxing
experts, of further tax increase
on local real estate.
Tax on Real Estate.
James A. Devine, secretary of the
Ohio Building Association League,
an organization comprising some
600 Ohio building and loan COM
panies, responsible for the welfare
Of nearly a million home buyers,
declared that the passage of q
mortgage recording tax law would
permit mortgage companies to put
millions of dollars worth of tax
exempt securities on the market, as
under the proposed measure mort
cages would be exempt from the
general property tax. He pointed
out that such tax would slow up
building by increasing the cost Of
financing construction work. Such
law would drain financial institu-
tions in rural counties and take
money needed for local improve
ments to the larger money centers
to work for their betterment. at
is another tax on real estate which
now is over-taxed," said Mr.. De.
vine.
Furthermore, the exemption of
mortgages from taxation is wrong
in principle under the Uniform
Rule, because it distinctly classifies
one intangible and leaves all other
intangibles to pay the general
property tax"
Defeated Six Years Ago.
The proposed mortgage record
ing tax is the same bill that was in
troduced by the mortgage COM
panies of Ohio six years ago, and
because of the opposition of home
owners and farmers, it was never
permitted to get out of the taxation
committee. Building and loan Off
cials are urging every owner of
property in Ohio to dis.
cuss the proposed mortgage record
ing tax with representatives of the
General Assembly to the end that
further expense is not put in the
way of the man or woman who
would own his own home or farm.
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