Rensselaer Journal, Volume 11, Number 3, Rensselaer, Jasper County, 27 June 1901 — MORTGAGE EXEMPTION. [ARTICLE]

MORTGAGE EXEMPTION.

An Indianapolis Judge Decides Same to be Unconstitutional. By a decision announced Wednesday Judge Allen, of the Marion county circuit court, held invalid the act passed by the legislature two years ago known as the “mortgage exemption law.” The case was filed by Maragret and Benjamin Smith, husband and wife, to compel Auditor Smith to accept a joint affidavit for exemption, when their property was held jointly. Hawkins and Smith, the auditor’s attorneys, argued that the law conflicts with the provisions of the state constitution, because in the constitution there is an expresa provision that no property other than that used for scientific, religious, educational, municipal or charitable purposes shall be exempted from paying taxes; also that its benefits could not be equally enjoyed by all property owners. This year exemption affidavits aggregating $4,600,000 were filed with the county auditor. Last year the total was 13,000.000. Both these amounts were deducted from the taxes. This money cannot be recovered bv the tax officers This decision will not have any bearing oh the action of the law in any other county In the state outside of Marion. The law will stand as n whole until decided unconstitutional by the supreme court. There is no indication that thia case will be ap paaied-.