Taxes shall be levied and collected by general laws and for public purposes only

Montana

Constitution, 1889, art. 12, sec. 2. Taxes shall be levied and collected by general laws and for public purposes only. They shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.

Present Law. St. 1895. In Montana mortgages are taxable as personal property. The term “credits” is defined to mean those solvent debts, secured and unsecured, owing to a person (sec. 3680, 6^th.). The assessor must require a statement under oath from each person; this statement to contain a list of all mortgages held by them (sec. 3701.). As an aid in the work of assessment the county clerk is required to transmit annually to the assessor a complete abstract of all unsatisfied mortgages, deeds of trust, contracts, and other obligations, by which any debt is secured.

If the property given as security is located in more

than one county, it is the duty of the assessor to trans-

mit such information to the state board of Equaliza-

tion. The board then fixes the proportional value to

be assessed in each county. Similar difficulties arising

Nebraska

Constitution, 1875, art. 9, sec. 1. The legislature shall provide such revenue as may be needful, by levying” a tax by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her, or its, property and franchises.

Present Law. Ann. St., 1903. In Nebraska mortgages are taxable as personal property. Prop- erty owners are required to list all moneys vested or loaned by them, either as principal or agent, (sec. 10427). In Nebraska according to law, the actual value of the taxable property is ascertained, but it is only assessed at 20 per cent of such valuation (sec. 10411).

It is the duty of the register of deeds, county clerk, county judge, clerk of the district court, and all other county officers, to assist the county assessor in the examination of the records of their respective offices, and to give to the county assessor any information in their possession that will assist him in his work of assessment (sec. 10513).

Nevada

Constitution, 1864, art. 10, sec. 1. The legislature shall provide by law for a uniform and equal rate of assessment and taxation.

Present Lazv. Comp. Laws, 1900. In Nevada mortgages are taxable as personal property. The term “personal property” includes all moneys at in- terest secured by mortgage or otherwise (sec. 1082). Court Decisions. The court has held that a debt secured by mortgage is subject to taxation, although the mortgagee is indebted to an amount equal to or exceeding the amount of his mortgage; (Drexler v. Tyrrell, 15 Nev. 114, 1880) and that the legislature under the constitution, cannot exempt money at in- terest secured by mortgage (State v. Carson Sav- ings Bank, 1882, 17 Nev. 146).

New Hampshire

Constitution, 1792 as amended 1902. Part second, art. 6. The Public Charges of Government or any part the~e”cf may be raised by taxation upon polls, estates, and other classes of property, including fran- chises and property when passing by will or inherit- ance.

Present Law. St. 1901, title 9, c. 55, sec. 7. In New Hampshire mortgages are taxable as personal property. Personal property liable to taxation in- cludes money on hand or at interest more than the owner pays interest for, money loaned on any mort- gage, pledge, obligation, note, or other security, whether on interest or interest to be paid or received in advance.

New Jersey

History. In New Jersey, legislation relating to mortgage taxation began as early as 1868. All mort- gages on real and personal property within Passaic, Morris, Hudson, Union and Essex counties, and within the city of New Brunswick were to be exempt from taxation in the hands of any inhabitant of the state (c. 382). It would seem that mortgages in the other counties were to be taxed and that real and per- sonal property was to be assessed at its full and fair value without any deduction for mortgages (c. 523).

The next year (1869) a law was passed (c. 511) providing that all mortgages upon real estate, chattels or personal property taxable by law in Hudson, Union, and Essex counties, in the county of Passiac, except the townships of West-Midford, Pompton and Wayne, and in the city of New Brunswick, were to be exempt from taxation when held by any inhabitant, corpora- tion or association residing or located in the counties .or cities enumerated, but were not to be exempt when held by any inhabitant, corporation, or association re- siding or located in any other county or place in the state.

In 1876 it was made lawful for the owners of lands situated in the counties of Hudson, Essex, Union, Ber- gen, and Passaic, and the cities of Trenton, New Brunswick, and Camden, to agree with the holders of any mortgage then in existence or thereafter made not to apply for any deduction from the taxable value of the lands given as security because of any mort- gage (c. 121, sec. 1). In cases where agreements had been entered into and broken, the mortgage was to be- come due and payable and the amount which the mort- gagee paid in taxes was to be added to the principal of the debt with interest (c. 121, sec. 2).

In the same year a general law was passed (Laws, 1876, c. 122) stating that no mortgage was to be as- sessed for taxation unless a deduction has been claimed by the owner of the land and allowed by the assessor. If the mortgage was separately assessed, it was to be taxed in the township or city where the mortgaged land was situated.

A similiar law, more definite and more carefully drawn, was passed in 1893, the main provisions of which were as follows : that no mortgage on real or personal property, or both, whether given by individ- uals or corporations, or the debt secured by such mortgages, was to be assessed for taxation unless a deduction had been claimed by the owner of the mort- gaged property and allowed by the assessor (c. 283). This law was repealed in 1903 (c. 209) and another law enacted (c. 208, sec. 10). The law as passed in 1903 was amended in 1904 and again in 1905 (Laws, 1904, c. 112, sec. 10; 1905, c. 161) and is now the present law of the state.

Constitution, 1844, art. 4, sec. 7, par. 12. Property shall be assessed for taxes under general laws, and by uniform rules, according to its true value.

Present Law. Laws, 1903, c. 208, sec. 10, as amended by Laws, 1904, c. 112 and Laws, 1905, c. 161. No mortgage or debt secured by mortgage on real property which is taxed in the state is to be listed for taxation, and no deduction from the assessed value of the real property is to be made by the assessor on account of any mortgage debt, but instead the mort- gagor is entitled to credit on the interest payable on the mortgage for as much of the tax as is equal to the tax rate applied to the amount due on the mort- gage. Exception is made to this rule where the par- ties have otherwise agreed, or where the mortgage is an investment of funds not subject to taxation, or where the parties have lawfully agreed that no deduc- tions shall be made from the taxable value of the lands by reason of the mortgage. Mortgages and debts secured by mortgages on property exempt from taxation are also to be exempt.

The legislature shall provide a uniform rule of taxation, except on property paying specific taxes

Michigan

Constitution, 1850, art. 14, sec. 11. The legislature shall provide a uniform rule of taxation, except on property paying specific taxes, and taxes shall be levied on such property as shall be prescribed by law.

Present Law. Complied Laws, 1897. In Michigan mortgages are taxab’e as personal property, (sec. 3824, 3831)

Minnesota

Constitution, art. 9, sec. 1. The power of taxation shall never be surrendered, suspended, or contracted away. Taxes shall be uniform upon the same class of subjects, and shall be levied and collected for public purposes. (Amendment passed in 1906)

Present Lam’. Laws, 1907, c. 328. In Minnesota mortgages are subject to a registration tax of fifty cents on the one hundred dollars, or major fraction thereof. A mortgage is defined as any instrument creating or evidencing a lien of any kind on real property, real estate, or land, given or taken as se- curity for a debt, even though such debt may also be secured in part by a lien upon personalty. An execu- tory contract for the sale of land is also treated as a mortgage, the unpaid balance to be considered as the face value. The law does not apply to correction mortgages, mortgages taken in good faith by persons or corporations whose personal property is expressly exempt from taxation by law, or to mortgages of per- sons or corporatioins whose property is taxed upon the basis of gross earnings, or other method of commuta- tion in lieu of all other taxes.

The tax imposed amounts to fifty cents on each one hundred dollars, or major fraction thereof, of the principal debt or obligation secured by real property situated within the state.

If the real estate given as security is situated partly within and partly without the state, the tax imposed by the state of Minnesota is in the proportion that the value of the real estate within the state bears to the value of the entire property given as security, and if the real property given as security is situated in more than one county of the state, the entire tax is first paid in the county where the mortgage is presented for record, and then this amount is divided between or among the counties in the same ratio as the assessed value of the real property covered by the mortgage in each county bears to the assessed value of all the property described in the mortgage. In the case of a mortgage given in trust, to secure the payment of bonds or other obligations to be issued, a statement may be incorporated, showing the amount already is- sued or to be issued forthwith. The tax is computed upon this amount and no obligations issued in excess of this aggregate are to be valid for any purpose unless the additional tax is paid and the receipt properly en- dorsed.

All mortgages together with the debts or obligations secured and the papers evidencing such debts, are to be exempt from all other taxes if the provisions of this law have been complied with, but the payment of this tax does not exempt such property from the opera- tions of the law relating to the taxation of gifts and inheritances, or those governing the taxation of banks, savings banks, or trust companies.

The tax imposed by this act is paid to the treasurer of the county in which the mortgaged land or some part of it, is situated. A receipt showing that the tax has been paid is endorsed on the mortgage by the treasurer, is countersigned by the county auditor and then the mortgage together with the receipt is re- corded by the register of deeds. Neither the mort- gage, papers relating to its foreclosure, nor any as- signments or satisfaction is to be registered, unless the tax has been paid, and in addition to this, neither the mortgage nor any record of it is to be received as evidence in any court or to have any validity as no- tice unless the provisions of this act have been com- plied with.

All mortgages recorded prior to April 30, 1907, may become taxable under the provisions of this law if the owner pays the tax upon the amount of the debt se- cured and obtains the treasurer’s receipt showing that the payment has been made. This receipt is then re- corded on -the margin of the mortgage record.

36 MORTGAGE TAXATION

The taxes paid to the county treasurers are to be apportioned and distributed in the same manner as the real estate taxes paid upon the real estate described in the mortgage.

Mississippi

Constitution, 1890, sec. 112. Property shall be as- sessed for taxes under general laws and by uniform rules according to its true value.

Present Law. Code, 1906, sees. 4258, 4266. Mort- gages in Mississippi are taxable as personal property. Money loaned at interest either within or without the state, is to be assessed and taxed to the owner at his place of residence.

Missouri

History. A joint resolution was drawn up in 1899 (Laws, 1899, p. 383) providing for an amendment to the constitution whereby mortgages and mortgaged property were to be taxable under a law very similar to the California law of 1879. This amendment was adopted by the people in 1900 (Laws 1905, p. 315). In a case arising under the law the court held that this amendment so discriminated between corporations and persons a corporation being for the purpose of taxa- tion a “person” within the fourteenth amendment as to deny to railroads and other quasi public corpora- tions “the equal protection of the law,” in that it re- quired the value of farm lands to be lessened, for taxation purposes, by the value of such security, but did not permit the value of the property of such cor- porations to be decreased by the value of their bonded and other indebtedness. The constitutional provision was held unconstitutional. (Russell v. Croy, 164 Mo. 69, 1901)

A California case involving the same question was declared constitutional (C. P. R. R. Co. v. Board of Equalization, 60 Cal. 35, 1882), and unfortunately when a group of similar California cases were carried to the Supreme court of the United States they were decided upon other grounds. (118 U. S. 394. See also 18 Fed. Rep. 385.) After the law was declared unconstitutional in Missouri a joint resolution was passed in 1901 to repeal it (Laws 1901, p. 261), and it was repealed by a vote of the people in 1902 (Laws 1905, p. 317).

Constitution, 1875, art. 10, sec. 3. Taxes may be levied and collected for public purposes only, they shall be uniform upon the same class of subjects with- in the territorial limits of the authority levying the tax, and all taxes shall be levied and collected by gen- eral laws. sec. 4. All property subject to taxation shall be taxed in proportion to its value.

Present Law. Ann. St. 1906. In Missouri at the present time mortgages are taxable as personal prop- erty. The term “credits” is defined to include all money loaned and all indebtedness by deed, contract, mortgage or pledge of property of whatsoever kind, (sec. 9123), and the list of every taxable person must contain an aggregate statement of all solvent notes secured by mortgage or deed of trust (sec. 9144).

The county recorders are required to keep a mort- gage list with such information as may be necessary to enable the assessor to place all mortgages on the assessment rolls (sec. 9173).

present law is but a modification of the law as passed in 1881 (Laws, 1881, c. 304)

History. The present law is but a modification of the law as passed in 1881 (Laws, 1881, c. 304). Constitution, 1780, Pt. Second c. 1, sec. 1, art. 4. The general court has power to impose and levy pro- portional and reasonable assessment, rates, and taxes, upon all the inhabitants of, and persons resident and estate lying, within the said commonwealth.

Present Law. Rev. Laws, 1902, c. 12 and 13. In Massachusetts mortgages are taxed as an interest in the real estate, and the parties to the mortgage may enter into a contract as to the payment of the taxes.

c. 12, sec. 16. If any person has an interest in real estate, not exempt from taxation, as holder of a duly recorded mortgage, the amount of his interest is to be assessed as real estate in the place where the land lies, and the mortgagor is to be assessed only for the value of the real estate, after deducting the assessed value of the interest of the mortgagee. If the estate is situ- ated in two or more places, the amount of the mort- gagee’s interest assessed in each is to be in proportion to the assessed value of the land given as security.

c. 12, sec. 17. The mortgagee’s interest in the real estate is not to be assessed at a greater sum than the fair cash valuation of the land and buildings.

c. 12, sec. 45. The mortgagor or mortgagee may bring to the assessor of the city or town where the real estate lies, a statement, under oath, of the amount se- cured, together with the name and residence of every holder of an interest therein, either as mortgagor or mortgagee.

c. 13, sec. 36. If a mortgagee of land situated in the place of his residence gives a written notice to the collector that he holds a mortgage on certain de- scribed land, the demand for payment is to be made on the mortgagee instead of the mortgagor.

c. 13, sec. 64. When the mortgagee pays taxes that should have been paid by the mortgagor, the amount paid is added to the obligation; and when the mort- gagor pays taxes that should have been paid by the mortgagee, the amount paid is deducted from the mortgage debt, unless in either case the parties have otherwise agreed in writing 1 .

Michigan

History. According to the law of 1882 (Acts no.

9, sec. 13) and the law of 1885 (Acts no. 153, sec. 13) mortgages were required to be listed as personal property. The mortgage was taxed in the same man- ner in 1887, Acts no. 262, but a more determined effort was made to get all the mortgages in the state. The plan followed was to have the registers of deeds report all mortgages recorded in their offices, to the supervi- sors and assessing officers of their respective counties, and to the registers of deeds of other counties where the mortgagee had his place of residence. In 1891 (Acts no. 200) a law was passed providing that mort- gages were to be taxed as an interest in the real es- tate, and that each party should pay taxes on his re- spective interest. Nothing was contained in the law forbidding contracts. In a case brought under this law, the court held that it was constitutional and that the mortgagor would, as under former statutes, be bound to pay the entire tax, subject only to the relief afforded him if the tax assessed against the mortgage interest was paid by the mortgagee, and that there was no obstacle in the act to prevent an agreement by the mortgagor to pay all taxes which might in the future be assessed against all interests in real prop- erty owned by him, including the interest as granted by the mortgagee. (Common Council v. Assessors, 91 Mich. 78, 1892.) The court also held that it was within the power of the parties to the mortgage to enter into an agreement that the mortgagor should pay the taxes assessed against the property, and that it was not the purpose of the legislature to limit that power. (Latham v. Board of Assessors, 91 Mich. 509, 1892.)

The law of 1891 was repealed in 1893 (Laws, no. 206) and the old law providing for the taxation of mortgages as personal property reenacted. The con- tract that the mortgagor is to pay a.l taxes on the mortgage or indebtedness secures, is very common in the mortgage forms in Michigan at the present time. The court has held that a covenant in a mortgage to pay all taxes levied upon the mortgaged property, “or upon or on account of this mortgage or the indebted- ness secured hereby,” is an agreement to pay the per- sonal tax assessed against the mortgagee on account of the mortgage, and that an agreement by a mort- gagor to pay the taxes assessed upon the mortgage as the personal property of the mortgagee is usurious where the lender knew that the aggregate of interest and taxes would exceed the maximum rate of in- terest allowed by statute, but it is not usurious where he believed it would not exceed that rate. (Green v. Grant, 134 Mich. 462, 1903)

Taxation shall be equal and uniform throughout the territorial limits

Louisiana

Constitution, 1 1898, art. 225. Taxation shall be equal and uniform throughout the territorial limits of the A constitutional amendment Is now pending, providing for the ex- emption of mortgages from taxation. authority levying the tax, and all property shall be taxed in proportion to its value, to be ascertained as directed by law.

Present Law. Rev. Laws, 1904, vol. 2, p. 1541, sec. 1 ; p. 1548, sec.10. In Louisiana mortgages are tax- able as personal property. Property subject to tax- ation includes money loaned at interest and the as- sessors are required to examine the records for such taxable property.

Mortgage notes, and indebtedness and all evidences of indebtedness are taxable only at the situs and domi- cile of the holder or owner. (Laws of 1908, act 170.)

Maine

Constitution, 1819, art. 9, sec. 8. “All taxes upon real and personal estate, assessed by authority of this state, shall be apportioned and assessed equally ac- cording to the just value thereof.”

Present Law. St., 1903, c. 9. In Maine mortgages are taxed as personal property. Personal estate for the purpose of taxation includes money at interest and all obligations for money (sec. 5).

Maryland

History. In 1874 (c. 483, sec. 2) Maryland passed a law exempting mortgages from assessment and tax- ation ; the law was repassed in 1880 (c. 122, sub. sec. 2, 3) and the exemption was made to apply only to mortgages on property wholly within the state. The law requiring all mortgages without exception to pay an eight per cent gross receipt tax was passed in 1896 (c. 120) and remained in force until 1904 (c. 405) when it was repealed in so far as it app-ied to certain enumerated counties and to Baltimore City and in the other counties where the law still remained in force all the revenue was to go to the county and not three- fourths to the county and one-fourth to the state, as formerly. Later (1906, c. 794) Dorchester was again placed in the list of counties where the income tax from mortgages was to be collected.

Constitution, 1867, as amended, Dec’aration of Rights, art. 15. Every person in the state, or person holding property therein ought to contribute his pro- portion of public taxes for the support of the govern- ment, according to his actual worth in real or personal property.

art. 3, sec. 51. The general assembly may by law provide for the taxation of mortgages upon the prop- erty in this state and the debts secured thereby in the county or city where such property is situated.

Present Law. St. 1904, vol. 2, art. 81, sec. 183. All mortgages in Worcester, Wicomico, Somerset, Carroll, Howard, Montgomery, Frederick, Washing- ton, 1 Garrett, 2 and Dorchester counties are required to pay annually a tax of eight per cent upon the gross

amount of interest covenanted to be paid each year on mortgages held by them. The tax is due and pay- able in the county where the mortgage is recorded and 1 Not included In law as passed In 1908.

The exact status of the law with regard to Garrett county Is doubtful (1908). all the taxes collected from this source are to be ap- plied exclusively for county purposes (Laws, 1906, c. 793, sec. 1). Mortgages recorded for only a part of the year pay taxes in proportion to the time recorded (sec. 184).

Any contract contained in a mortgage executed af- ter the passage of the law in which the mortgagor agrees to pay any or all taxes on the mortgage, debt, or the interest covenanted to be paid, is to be null and void (sec. 185), and mortgagees are required to take oath that they have not required and will not re- quire the mortgagor or any person for him to pay the tax as levied. This oath is to be repeated if the mortgage is assigned at any time (sec. 186). Any mortgagor paying the tax that should have been paid by the mortgagee, is entitled, upon satisfactory proof, to have the amount paid with interest at 6 per cent de- ducted from the mortgage debt (sec. 188).

The clerk of the circuit court in the counties where the law applies, is required to render to the board of county commissioners a list of all mortgages recorded, released, and assigned during each month ; this list to contain all the information necessary to enable the board to levy the tax. If the mortgagee refuses to pay the tax when due, his interest may be sold in the same manner as other property is sold for taxes (sec. 187).

Constitution, 1857, art. 1, sec. 18.

Iowa

Constitution, 1857, art. 1, sec. 18. Private property shall not be taken for public use without just com- pensation first being made.

Present Law. Code, 1S97. The system of double taxation of mo i gages prevails in Iowa (sec. 1308, 1310). In order to get a more complete assessment of property, and especially of debts secured by mort- gages, a law usually known as the tax ferret law was enacted. The present law was passed in 1900 (Laws, 1900, c. 50), Supp. to code, 1907, sec. 1407a and pro- vides that the board of supervisors of any county may contract in writing with any person to assist the proper officers in the discovery of property not listed and as- sessed as required by law. The total charges, fees, and expenses, are not to exceed fifteen per cent of the taxes paid into the county treasury.

Court Decisions. A case was brought to compel a bank to pay taxes on its moneys and credits. The sum which was given under the heading, “Moneys and Credits” was intended to represent the difference as returned by the assessor and the par value of the capi- tal stock of the bank. The court held that where property had been listed and assessed by the assessor, a county treasurer has no authority to enter an addi- tional assessment based on the difference between the assessed value and the actual value as found by him. Savings Bank v. Trowbridge, 124 la. 514, 1904.

Kansas

Constitution, 1859, art. 11, sec. 1. “The legislature shall provide for a uniform and equal rate of assess- ment and taxation.”

Present Law. St., 1905.. .In Kansas mortgages are taxable as personal property. Both real and personal property are subject to taxation (sec. 8230), and per- sonal property is defined to include mortgages and all evidences of debt secured by lien on real estate (sec. 8231). The abstract of the assessment roll which ii forwarded to the state auditor by the county clerk con- tains a statement of the amount of mortgages held in the county (sec. 8340).

Kentucky

Constitution, 1891, sec. 171. “Taxes shall be levied and collected for public purposes only. They shall be uniform upon all property subject to taxation within the territorial limits of the authority levying the tax; and all taxes shall be levied and collected by general laws.”

Present Law. St., 1903, Acts, 1906. In Kentucky mortgages are taxable as personal property. Both real and personal property are subject to taxation (sec. 4020). The amount of notes secured by mortgages is included in the schedule which the tax payer is re- quired to fill out. This schedule gives the value as fixed by the person assessed and by the assessor (sec. 4058).

Each county clerk is required to make out a list of all purchase money notes, mortgage notes, and other obligations for money due, except those owned by banks or trust companies. This list is to be sent to the county assessor and is to contain all the informa- tion necessary to enable the assessor to place such forms of property on the assessment roll. No mort- gage or assignment is to be recorded unless the resi- dence and post office address of the owner or holder is given. Acts, 1906, c. 22, art. 2, sec. 10.

Constitution, 1870, art. 9, sec. 1.

Illinois

Constitution, 1870, art. 9, sec. 1. “The general as- sembly shall provide such revenue as may be need- ful by levying a tax, “by valuation, so that every per- son and corporation” shall pay a tax in proportion to the value of his, her or its property.”

Present Law. Rev. St., 1905, c. 120. In Illinois mortgages are taxable as personal property. Every person is required to list all moneys loaned by him as owner or agent (sec. 6). Where a deed for real estate is held for the payment of a sum of money, the sum thus secured is considered personal property and is listed and assessed as credits (sec. 21) ; personal property, like real estate in Illinois, is assessed at one- fifth of its listed value (sec. 312). The usual deduc- tion of debts from credits is allowed (sec. 27).

Indiana

Constitution, 1851, sec. 193. The general assembly shall provide, by law, for a uniform and equal rate of assessment and taxation ; and shall prescribe such regulations as shall secure a just valuation for taxa- tion of all property, both real and personal.

Present Laiv. Ann. St., 1901, vol. 3, sec. 8417a, as amended by Laws 1903, c. 27, sec. 36. In Indiana mortgagors may have the amount of the mortgage in- debtedness, not exceeding seven hundred dollars, still unpaid on the first day of March, deducted from the assessed valuation of the mortgaged premises for that year, and the amount remaining after the deduction has been made is to form the basis for assessment for the real estate. In no case is a deduction to be al- lowed greater than one-half of the assessed value of the real estate.

sec. 8417b. Any person wishing to avail himself of the provisions of the law is required to file with the auditor of the county where the estate is situated, a sworn statement of the amount of the mortgage in- debtness unpaid on the first of March. The mort- gagor must also give the name and residence of the mortgagee, assignee, owner, or holder of the mort- gage, together with the record and page where the in- strument is recorded and a brief description of the real estate given as security.

sec. 8417c. Where the mortgage indebtdness is li- able for taxation in a county other than the one in which the real estate is situated, it becomes the duty of the auditor to certify and transmit a copy of this sworn statement as made by the mortgagor to the au- ditor of the county where the mortgagee, assignee, or holder of the mortgage resides.

Court Decisions. In a case brought into the Su- preme Court to test the constitutionality of the law, the court held that the act of 1899 authorizing the de- duction for the purpose of taxation, of mortgage in- debtedness, not exceeding $700, from the assessed valuation of real estate, such deduction not to be greater than one-half of the assessed valuation thereof, was not violative of the provisions of the state consti- tution requiring equality and uniformity in taxation, nor of the fourteenth amendment of the United States constitution relative to the right to the equal protection of the laws. State, ex rel. v. Smith, 158 Ind., 543, 1901.

Constitution, 1885, art. 9, sec. 1.

Constitution, 1885, art. 9, sec. 1. The legislature shall provide for a uniform and equal rate of taxa- tion, and shall prescribe such regulations as shall se- cure a just valuation of all property, both real and personal, excepting such property as may be exempted by law for municipal, educational, literary, scientific, religious, or charitable purposes.

Present Laiv. Gen. St., 1906. In Florida mort- gages are taxed as personal property. Both real and personal property are subject to taxation (sec. 428). Credits are included under personal property (sec. 432), and are defined to mean every claim and demand for money. The assessment roll should contain a statement of a’l mortgages except those given for pur- chase money (sec. 512).

Georgia

Constitution, 1877, art. 7, sec. 2, par. 1. “All taxes shall be uniform upon the same class of subjects, and ad valorem on all property subject to be taxed within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws.”

Present Law. Code, 1895, Mortgages in Georgia are taxable as personal property. Both real and per- sonal property are subject to taxation (sec. 767), and tax payers are required to make a return of the gross value of their notes and other obligations for money (sec. 833).

Idaho

Constitution, 1889, art. 7, sec. 5. “All taxes shall be uniform upon the same class of subjects within the territorial limits, of the authority levying the tax, and shall be levied and collected under general laws, which shall prescribe such regulations as shall secure a just valuation for taxation of all property, real and per- sonal : Provided, That the legislature may allow such exemptions from taxation from time to time as shall seem necessary and just.”

Present Law. Laws, 1907, p. 178. In Idaho the legislature took advantage of this provision and ex- empted all dues and credits secured by mortgage, trust deed, or other lien. This law has been in force since 1895. (Laws 1895, p. 48.)