The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-22
Taxation and Equa lixatiOn.

The system upon which our State taxes
are levied varies from that which prevails
in otr city taxation in one important par
ticular. In the city, provisional estimates
are made of the amounts necessary to meet
all the expenditures Of the year, and on
such estimates are based the final appropria-
tions which form the total of the years tax
alton. When the years valuations of real and
personal estate are completed such rate per
one hundred dollars is imposed as will real
ize the total amount of the required tax.
Under the State system, after the necessary
expenditures Of the year have BEEN esti-
mated, a tax is levied by law in mills and
fractions of mill sufficient to meet the ag-
gregate sum required. But the calculation
of the rate is made on the basis OF the pre-
ceding years valuation and before the ag-
gregate Of the assessments on which the tax
is really to be levied is known. Tax Com
missioner Andrews, in his report three
years ago, pointed out the injustice Of this
State system, which he characterizes as a
device to conceal from the people the mill
ions asked for by covering up the amount
under the less startling designation of the
rate in mills. He shows how large an
amount of taxation is taken out Of the
pockets of the people in excess of the esti-
mated and required product of the tax
through the increase of valuations But
the unsoundness Of the system can be
illustrated by supposing reversal of this
result. If for any reason the aggregate Of
the assessments on which mill tax is to be
levied in any year should be materially de-
creased from the aggregate of the preceding
year after the tax had been fixed by law the
product would fall short Of the required
amount, and the State would be seriously
embarrassed.
Tax Commissioner Andrews able papers
on this subject and on the injustice done to
the city Of New York by the State Board of
Equalization have, no doubt formed the
groundwork for the admirable arguments
and recommendations of the Governor
and Comptroller. Mr.. Andrews exposes
the Inconsistency of the rule on which
the State Board pretends to ''equalizc
the assessments. While making the val
uation in Broome, Erie, Jefferson and Onon-
daga counties only 52.6 per cent of the
valuation by the local assessors, the State
Board increased New York city's valuation
more than one hundred and twenty-three
millions over the ample valuation of the
Department of Taxes and Assessments
Vhe injustice of this action is strik-
ingly shown In these facts:-I If the
local assessors valuation in the four
counties of Broome, Erie, Jefferson and
Onondaga represents the actual value of
the real estate in those counties the State
Boards action implies that so. 6 per cent on
the actual value is fair rate Of assessment
for State taxation. Applying this rate to the
valuation OF 81, 015, 565, 600 placed on the
real estate in New York by the State Board
in 1876 it would make the actual value of
such real estate within u fraction of two
thousand million dollars. Mr.. Andrews
believes, in view of this inequality and In
Justice, that real estate should be relieved
from taxation for State purposes and the
taxes be assessed on corporations, and that,
if necessary, a revenue should be secured
by means OF q State license tax upon certain
classes Of blu siness.