The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-06-17
FAULTY ASSESSMENT.
Board of Trade Members
Expose the Evils of the
Present Tax System.

AlteT Wa1bluR ulGl1 Close on 10 Q1u6
O'Clock for quorum to put in an appear
ance at the Board of Trade meeting last
night. Chairman Gordon decided to pro-
ceed with the twelve members who were
present. The Chairman of the Commit
tee on Laws and Legislation stated that
the committee were providing for the in
corporation of the body under the new
act of the Legislature, and that their
labors would be complete at the Septem-
Der meeting
Resolutions were adopted thanking
Senator E. +. Mcdonald for his efforts in
passing the Board of Trade act in the
last Legislature, and also thanking AS
semblyman Mullone for recalling the
City Hall bill after it had passed both
Houses and having the amendment pro-
viding for general vote inserted.
On motion of Mr. Booraem o committee
of three was appointed to revise the con-
stitutlon and bylaws.
PROPERTY ASS ESSBIENT.
The chairman then stated that the pro-
per basis to be used by the assessors in
valuing property was the subject for dis
cussion.
Mr. Booraem said:-"This is most i'm
portant subject and one that demands
careful attention. II the members of
this Board of Trade had just received
their tax bills | am sure that the meeting
tonight would be well attended. The
citizens have alway approached this SUBJ
ject with view to having as little taxa
Lion as possible The politicians, on the
other hand, are always trying to devise a
system which will increase the revenue.
But the politicians in their eagerness are
inclined to kill the goose that lays the
golden egg. They are continually in
creasing the valuation, and, as conse-
Quence, the property is really decreased
III its intrinsic value If the
property were properly assessed
in demand for property. This demand
would cause the market value to increase
and the following year higher valuation
might be put on it, but when the assessors
raise the tax valuation to its highest DOS
sibility, the .property's intrinsic value is
decreased. We have high rate, and the
real estate men think that it scares would
be purchasers away. The criterion the
assessors should go by is net percentage
of what property will return on an invest
ment. A certain house, tenement facing
the Erie Railroad tracks, was assessed at
So, 600, and yielded an income of between
5000 and 5000 per year. The assessor raised
its valuation to 81, 600, and the property
only produced three per cent. net. OF
course / know it is Illegal for the assessor
TO regard the income of property III fixing
its valuation, but say that it is really the
only Ju5U way Oh QRteTllHR VdluAtlOn.
"The attitude Of the Commissioner of
Appeals do not think just. A will have
his property assessed at fifty per cent. of
its value, while BIS property will2be as
sessed at ninety per cent. of its worth.
b will go before the commissioner to ap-
peal but is met with the question, Are
you willing to swear that your property
has been assessed at more than it's valua-
tionY This is not right.
Mr.. Anderson then made suggestion
that the income of property be regard
ed as ten per cent. OF its value, then allow
fcr deterioration in value caused by loca-
tion, time or other causes. then take
sixty per cent of the residue as the valu-
alton.
SOME INCONSISTENCIES.
James Mcilhinney said that the sub
iect was of the greatest Importance.
Said he:--'I have not had the pleasure of
meeting an assessor in twenty years and
think all of the assessing is done in the
City Hall or some other hall. owned a
piece of property on the Heights. Some
years ago 1t was assessed at 500. The
following year it was valued at $500, and
it kept increasing until last year, when it
was valued at 81, 400. / was mad and
went down to the corner room in the City
Hall where they have that little pen and
offered to sell the piece of property for
$1,000. They reduced the valuation to
81, 900. Fourteen years ago l bought
piece of property for 400. 1t has
been valued at 81, 500 ever since.''
Chairman Gordon said he had met the
assessors in their travels in the lower part
of the city but he could not say whether
they ever visited the Hill or not.
Mr. McIlhinney said he hoped that a
house to house canvas would be made and
that the assessors would consult the own
ers. 1t was finally resolved by the Board
that the assessors be asked not to increase
the valuation generally but look more to
equalization. Messrs. Booraem, Walker
and Jewell were appointed committee
to revise the manual and the Board
adjourned until the third Monday in Sep
tember.