Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1878-12-13
London Taxation,

The general impression in America
seems to be that the taxation in En-
gland is very heavy, and, fully impressed
with this idea, made an examination
into the matter, and was astonished to
find that London real estate is not taxed
at anything like the rate that Philadel-
phia pays. To all outward appearance
the service that London gets for its
taxes is good-that is, the police and
fire service, the street pavements,
lighting, sewerage, cleaning, and every
thing of that kind are of the best char
acter. We are accustomed to good
police and fire service in Philadelphia
to street cleaning that is good in some
parts and bad in others; and to street
pavements that, except in few of our
principal streets, London would not
tolerate. Public municipal taxation in
London provides for about the same
things that it does with us, but a very
much larger portion of the taxes col
lected are poor rates. A gentleman
here was kind enough to show me all
his tax bills, and his case | am about
to quote. He occupies in the heart of
London, not very far from the Bank of
England, large building, recently
erected in substantial style, which
fronts about thirty-eight feet on st.
Bartholomew close, and is about forty
feet in depth. In London the tenant
and not the landlord pays the taxes,
but they are assessed, as with us, on
the real estate. This building has a
rental value of f350, or $1,750, and if
it could be bought at all-which it
could not-he said he would be willing
to give $45, 900 or $4,000 for it. The
rentals, he said, were usually estimated
at from three to three and one-half per
cent. of the freehold value of the prop
erty, the tenant, in addition, paying
the taxes. Were this property located
in Philadelphia, and valued, as most
buildings now are, at an approximation
to their value at a public sale, the tax
on it would be $500 to 5000 for munic-
ipal purposes This gentleman paid
for his entire municipal tax S125, of
which about 500 was the poor rate, and
the remainder, of about $54, supplied
every municipal charge, including
about everything for which we pay
taxes in Philadelphia. This sum was
the aggregate of all his real estate tax
es for every purpose. He paid, in ad-
dition, the income tax due the general
government ON the profit of his busi-
ness, but that was the only other tax he
paid. Now, it itimpressed me so strong
ly that this London merchant got so
much better return for so much less
money invested in municipal taxes that
it would do good to tell the story. 1t
certainly disabused my mind of the
impression that London was taxed more
heavily than Philadelphia. He paid
his taxes at different periods, and not
all in one annual bill, as is customary
with us. The poor rate, which was
more than half the total tax, was col
lected quarterly; some of the others
half yearly. The valuation on which
the tax was based was not the valuation
of the property, but valuation based
upon the rental, from which various
deductions were allowed. Thus he, be-
ing the holder of long lease, had re-
Gently put up a fine new building on
the land, and, instead of increasing the
valuation for this reason, deduction
had been allowed on account of the inn
provement-in other words, the munic-
ipality offered this premium for public
improvements.
II would of course be impossible for
London to support its costly city and
metropolitan government upon such a
tax as this if the real estate were solely
taxed. But it, on the contrary, looks
elsewhere for portion of the burden,
and the taxes on real estate are, there
! fore, hghtened. 1t gets q magnificent