The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-01-12
CHI A r EST N.
TUESDAY MORNING. JANUARY 12, 1869.
The Real Estate Tax.

1he ClIy COunCll, at tueir mtetluS "
night, will probably act upon the scheme
of taxation proposed by the Committee OF
Ways and Means, which includes tax Of
% per cent. upon all real estate.
This tax on real estate, an increase Of
one half per cent. on the tax Of last year
we are still constrained to oppose, not or
account of any disposition to interfere with
Council in their deliberations, but because
the whole matter is still open to discussion,
and because nothing has been said or writ,
ten which has changed our opinion that the
increased tax ia, under the circumstances,
both unwise Ind unnecessary.
No one will deny that tax on real estate
of 2 per cent. is as much as property hold
ers can pay, and more than they can afford.
The real property in the city is assessed at
far more than its value; vacant lots pay
taxes as though dwelling houses and stores
still stood upon them, and it is no uncom-
mon thing for eligible stores to be rented
for the amount of their taxes and the cost
of insurance. We do not hesitate to say
that real estate in this city is miserably un-
productive; for with tax of % per cent,
and taking into account State taxes, insu-
rance, and repairs, the actual return upon
the value of the property would not aver
age moro than three per cent. This sis the
simple truth, and we should like to know
whether oppressive taxation is not keeping
down the marketable value of real estate,
and actually preventing the growth of the
city.
The object of the committee in raising
the tax to % per cent. is to resume the pay
ment of interes: on the city debt. This
restoration of our credit we most earnestly
desire, and we hold that every reasonable
sacrifice should be made to place Charles
ton in solvent position. But it is whim-
sically foolish to say that the resumption Of
the payment of interest will increase the
value of real estate. Property holders
never regard the city debt as mortgage
upon their houses and lots, nor do they
ever face the fact that all their real estate
is responsible for the debt of the city. And
in regard to the additional value to be given
to real estate, we tell the committee that
increased trade and increased business
alone will cause demand to spring up for
oba fhap
in price. We are, nevertheless, ready to
sustain the new tax, if without it the city
interest cannot be paid.
The estimated revenue for the year
exclusive of the real estate tax-is $780,, 300,
and the estimated expenditures are, in
luding the interest, $7O9,eOO, leaving a
deficiency of say $5OO,OOO. In the expen-
ditures are included two sums which We
propose to strike out: l. Floating debt se-
cured by deposit of oollaterals, $50,00O.
@ improvements, S56, 900. Total, $50, 900.
The first amount, $50, 900, is money bor-
rowed from the banks, and we know that
it can be carried for twelve months more,
if required, upon the same security which
the lenders now hold. If this city, when
paying its interest, cannot borrow $4,000
as readily as it did when it was not paying
the interest, the resumption will, it seems,
do cur credit more harm than good.
The second amount, thirty. six thousand
dollars, for improvements, we cannot afford
to spend. The committee set down fifty
thousand dollars for streets and pavements,
which will keep the grass from growing on
the sidewalks, and should keep the whole
city in ordinary repair. Beyond this amount,
we are not willing to spend single dollar,
because it will do more harm to add one.
fourth TO the tax on real estate than for
the city to remain in its unimproved condi-
ZION for another year or so. The same ar
gument holds good in relation to the fifty
thousand dollars of borrowed money, the
interest upon which for twelve months will
be as nothing in comparison with an addi
tional taxation Of ! per cent. on real prop
erty.
Cutting off this amount of eighty-six thou
sand dollars, for borrowed money and i'm
provements, the deficiency in the city budget
is reduced to say, four hundred and four
teen thousand dollars. A tax of per cent
on real estate--the tax of last year-will
produce four hundred thousand dollars, and
the balance, fourteen thousand dollars,
may be either made up by receipts overrun-
ming the estimates, or by deferring its pay
ment to the succeeding year.
We do not like the practice of cutting off
from the top to tack on to the bottom, but
we know that tax of q per cent on real
estate will be wellaigh ruinous; and as we
have shown that the interest on the city
debt oan be paid With e tax of 2 per cent
only, we urge Council to vote down any
proposition to make the tax one iots more
than that amount.
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