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Further proviso, church, etc.

Further roviso, uilding and

loan.

How paid, etc.

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AN ACT to provide for the assessment and the collection of a specific tax upon the class of credits founded upon and evidenced by mortgages and liens upon real property, and to repeal all acts and parts of acts in contravention thereto.

The People of the State of Michigan enact:

SECTION 1. For the purposes of this act all indebtedness secured by liens upon real property shall constitute that class of credit upon which this act imposes a specific tax. The word “mortgage” as used herei shall include every mortgage or other instrument by which a lien is created over or imposed upon real property, notwithstanding it may also be a lien upon other property, or there may be other security for the debt, and shall also include executory contracts for the sale of real property, and deeds or other instruments that are given to secure debts.

SEC. 2. A tax of fifty cents for each one hundred dollars and each- remaining major fraction thereof of the principal debt or obligation which is, or under any contingency may be, secured by a mortgage upon real property ituated within this State recorded on or after the first day of January, nineteen hundred twelve, is hereby imposed on each such mortgage, and shall be collected and paid as hereinafter provided: Provided, That no tax shall be imposed upon any debt or obligation which is, or under any contingency may be, secured by a mortgage upon such real estate as shall be owned and occupied by library, armory, benevolent, charitable, educational and scientific institutions, incorporated under the laws of this State, with the buildings and other property thereon, while occupied by them solely for the purposes for which they were incorporated: Provided, That such exemption shall not apply to fraternal or secret socie

ties, but all charitable homes of such societies shall be ex

empt: Provided further, That notax shall be imposed upon
any debt or obligation which is, or under any contingency
may be, secured by a mortgage upon any house of public
worship with the land on which it stands, the furniture
therein and all rights in the pews, and upon any parson-
age owned by any religious society of this State and occupied
as such; which such mortgage is,recorded on or after the
first day of January, nineteen hundred twelve: Provided
further, No tax shall be imposed upon any building and
loan mortgage. The tax imposed by this section shall be, in
addition to the recording fee now provided for by law.
SEC. 3. The tax imposed by this act shall be paid to and
collected by the treasurer of the county where such mort-
gage is first presented for record, in the manner following:

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Before said mortgage is received by the register of deeds for Computing. recording it shall be presented to the county treasurer who etcshall as one of his official duties compute and collect the

taxes due thereon as provided by this act, and shall certify

on said mortgage the amount secured thereby and the amount

of taxes received by him. Said certificate shall be recorded Certificate, by the register of deeds as a part of the record of said mort- re°°rdmg °f' gage. If said mortgage is given wholly or partly as an indemnity, the mortgagee or owner thereof, shall attach thereto

an affidavit showing the greatest amount for which it can,

under any circumstances, become security, and the taxes

shall be paid upon that amount, and no greater sum can be collected on said mortgage; Such certificate shall not be re

quired with any mortgage made to indemnify the mortgagee

as surety, or to secure the performance by the mortgagor

of any contract which does not require the payment of a specified sum of money, nor with any mortgage made to cor

rect or perfect a mortgage previously recorded, on which the

charges imposed by this act have been paid, if no new or additional indebtedness is created thereby. For a wilful mis- Wilfulmisstatement of the amount for which said mortgage can, in any statement" event, become security, said mortgagee or the owner of said mortgage shall be deemed to have subjected himself to the

pains and penalties of perjury.

Sec. 4. If the mortgage shall cover and describe real prop- Property, erty situated partly within and partly without this State, §§?{¥1e“§1§§{e, then the said mortgage shall contain immediately after each separate description of real property, astatement of the value of the said property set forth in such separate description.

The mortgagor shall take oath, which may be administered Perjury. in the acknowledgment of said mortgage, 'that the several

values placed upon the several descriptions are the true

values thereof, to the best of his knowledge and belief, and

for a wilful misstatement of any such values he shall be

deemed guilty of perjury. When the real property covered When_tax by said mortgage is located partly within this State and $5332., de, partly without this State, the Board of State Tax Commis- “Winemsioners shall be notified thereof by the county treasurer to

whom said mortgage is first presented in this State and it

shall be the duty of said Board of State Tax Commissioners

to determine what proportion shall be taxable under this act,

by determining the relative value of the mortgaged property

within this State as compared with the total value of the

entire mortgaged property taking into consideration in so do

ing the amount of all prior incumbrances upon such prop

erty or any portion thereof. The said Board of State Tax Notice.how Commissioners shall cause notice to be served upon the served‘ mortgagor and the mortgagee in the manner hereinafter pro

vided, and not less than ten days thereafter shall proceed to determine what proportion of the principal indebtedness

secured by the mortgage shall be used as the measure of taxa

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tion within this State under the provisions of this act. The
notice aforesaid shall be in manner and form as follows:
To the mortgagor and mortgagee of the within described

property:
Take notice, That on the . . . . . . . . .. day-of . . . . . . .., Anno
Domini nineteen hundred . . . . . . .., the Board of State Tax

Commissioners of the State of Michigan, will meet in the offices of said commission at Lansing, Michigan, at . . . . . . .. o’clock a. m. (p. m.) to determine what proportion of the principal indebtedness secured by the mortgage on the property herein described, shall .be used as the measure of tax ation within this State under the provisions of act number . . . . .. of the public acts of nineteen hundred eleven, and that you are entitled to attend such meeting and to testify as to the correctness of'the several values placed upon the several descriptions contained in said mortgage. (Description)

Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Place of business . . . . . . . . . . . . . . . . . . . . .. The service of the said above notice shall be made by the sherifl’ of any county in this State in which the property situated in this State and covered by said mortgage lies. If the persons entitled to suchnotice, or any of them, are residents of this State, they shall be served therewith personally, or by leaving said notice at their usual place of residence with some member of the family of mature age, or by forwarding same by registered mail in a sealed envelope properly addresed to their last known place of abode, and proper return thereof shall be made by the sheriff. If the persons entitled to said notice or any of them are non‘residents of this State, said above notice shall be served by sending a copy thereof by registered mail to the proper postofiice address of said non-resident person or persons, and in making his return the sherifi shall attach the postmaster’s receipt for the same; or said non-resident person or persons shall be served personally with a copy of said notice and whenever such notice shall, be personally served outside of this State, proof of such service shall be made by the affidavit of the person who shall serve the same, made before a justice of the peace or notary public and when such affidavit shall be made outside this State, it shall have attached thereto the certificate of the clerk of the court of record, certifying to the ofiicial character of the justice or notary, and the genuineness of his signature to the jurat of the affidavit and the sherifi shall make proper return of said proof of personal service. If the said non-resident person or persons entitled to said notice are dead, or if their estate shall be' under control of a trustee or guardian, then and in such case notice as hereinbefore provided shall be served upon the executor or administrator of said deceased person or persons, or upon his or their heirs if there be no executor or administrator, or upon the trustee or guardian of any incompetent person with like efiect as if served upon the mortgagee or mortgagor, and

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if the sherifi of the county where any of the real property covered by said mortgage is located in this State shall make

a return that after careful inquiry he is unable to ascertain

the whereabouts or the postoflice address of the person or persons upon whom notice shall be served as aforesaid, or

any of them, then such notice as is-herein provided for shall Publication. be published for four successive weeks which shall be con

strued to mean four publications once each week, in some newspaper published and circulating in the county where

such property is located, if there is one. and if no such paper

is published in such county then publication shall be made

in some newspaper published and circulating in an adjoin

ing county and due proof of publication by aflidavit of the printer or publisher of such newspaper, shall be filed with

the proper return of the sheriff and shall be in lieu of per

sonal service upon the person or persons whose whereabouts

or postotfice address can not be ascertained. In determining Determinathe separate values of the property covered by any such Qflfifgol’fue' mortgage within and without this State for the purpose of sideer inascertaining the proportion of the principal indebtedness secured by the mortgage which is taxable under this act, the

‘ Board of State Tax Commissioners shall consider only the

value of the tangible property covered by such mortgage,

taking into consideration in so doing the amount of all prior incumbrances thereon. For the purpose of determining such Data, etc., value, the Board of State Tax Commissioners may require the 3,3,5; mortgagor 0r mortgagee or both to furnish the board by aflidavit or verified report, such information or data as it

deems necessary for such purpose, or the board may take

the testimony of the mortgagor or any other person in rela

tion thereto, and if any person whose testimony is desired

can be found within this State, may require him by subpoena

to attend before the board at a specified time and place for

the purpose of testifying in relation to the value of such property. When said Board of State Tax Commissioners shall When tax have determined the amount of tax due on said mortgage, said detemMdboard shall file a certified copy of such determination with

the register of deeds or recording officer of each county in

which any part of the mortgaged property in this State is situated, and said board shall forthwith. serve notice of said Notice. determination in writing upon the mortgagor and mortgagee

in the manner hereinbefore specified for serving notice of examination by said Board of State Tax Commissioners and

in form as hereinafter provided, and said mortgage upon Mortgage, which said tax is due shall not be received for record until agg'rlded the tax determined upon by the Board of State Tax Commis- ' sinners, shall have been paid in full. The Board of State Board,rulcs Tax Commissioners shall adopt rules to govern their proced- °"

are, and the manner of taking evidencein these matters, and

may require certified statements to be furnished by the board

of assessors or register of deeds or recording officer of the

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Provisions, when not applicable.

Notice of _ determination, form.

Mortgages made in trust.

Further amount advanced.

When unenforceable.

When discharged.

When recorded before act effective.

respective counties in relation thereto. The provisions of this section relating to the refusal of receiving a mortgage for record until the tax thereon has been paid in full shall not apply to mortgages made in trust to secure payment of bonds or obligations issued or thereafter to be issued, when only a partial amount of the indebtedness has been advanced thereon at the time of presentation for record. The aforesaid notice of the determination of the Board of State Tax Commissioners shall be in form as follows:

To-the mortgagor of the within described property:

Take notice, That the tax upon the mortgage on the property hereinafter described has been determined by this board to be . . . . . . . . . . . . . . . . . . .. Said mortgage will not be ad mitted to record in any county in the State of Michigan until said tax shall have been fully paid and discharged.

(Description)

~ Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Place of Business . . . . . . . . . . . . . . . . . . . . ..

SEC. 5. In case of mortgages made in trust to secure'pay' ment of bonds or obligations issued or to be issued thereafter, if only a partial amount of the indebtedness has been advanced thereon at the time of presentation for record such mortgage shall, at the end thereof, contain a sworn statement of the amounts advanced thereon and secured thereby, and the tax herein provided shall be computed on that basis.v When a further amount is advanced thereon or becomes secured thereby the. mortgagee shall immediately present to the county treasurer and file with the .recording officer where such mortgagee was first recorded a statement of the amount about to be further advanced or become further secured, and the tax on such amount shall thereupon become due and payable on such amount about to be advanced or secured, and it shall be paid in the same manner as to the original tax thereon as in this act provided. If such addi— tional tax is not paid as required by this section such trust mortgage and evidence of indebtedness, bonds or securities secured thereby shall be unenforceable until said tax is paid and such additional tax shall draw interest at the rate of one per cent per month from the date when the same became due. No trust mortgage shall be discharged until the trustee therein shall have filed an affidavit that all taxes for which such mortgage is liable have been duly paid. Any person making a false affidavit under this provision shall be liable to prosecution for perjury.

SEC. 6. The owner of any mortgage which is now, or which may be recorded before this act takes effect, may present to the county treasurer of the county in which said property is situated an affidavit setting forth the mortgage and the place of record thereof and the amount of principal secured thereby which is unpaid, and may pay a like tax of one-half of one per cent upon such amount, and thereafter said mortgage for the purpose of taxation is to be considered and

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