New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-11
TO REV THE TAX LAWS.
IMPORTANT AMENDMENTS TO THE FAR
QUHAR BILL.
NEW POWERS FOR LOCAL AUTHoRlTIEs-A
sr.rr BOARD OF TAX COMMISSIONERS
CREArED-oTIIER FEATURES OF
THE MFAStE

Tax law drawn mp by Professor Charles A. No''''.
Of Cornell University. the Governors law aoVe., "'
j. Newton Fiero. has had amendments OF '"e hienc''
importance made TO 1t by them and by Assemoiyn ,an
rarouhar of NcwYork Mr.. Farquhar Submitted TINS
new bin 10 the Assembly this morning IL VIII IN
terest all In railroad and Insurance properly
insurance companies and saving bank depo>loi''
DESPITE the protest OF the 100000 savingbah ne
positors section of the bill providing Ior 'he 'aA
alton OF deposits In those banks Is stu retained
- Afr Farouhar has injected into the bill his own
so-caled Home Rule Taxation measure ms gives
authority the supervisors of county or the 'oho'
Council Of a city TO exempt personal properly from
taxation and raise all the taxes for local purposes
nv ,ox,nr rea, estate The bin abolshes the present
State Board OF Equalization. and substitutes ior II
now board which Is 10 be known as the Board OF LAY
Commits iOners. The members OF THIS Dohru are W
he the state Controller and five State Assessors Al
present there three State Assessors. so th' ue
number Is to be increased by two. There Is to be
ope State Assessor in each one OF the five judicial de-
var1ments of the state one of them Is TO preside NJ
the meetings of the county Boards OF supervisor"
when they cquazc the taxes OF their conhUes' III
case an appeal is taken from an equalization VI "'e
taxes OF a county, the state Assessor VINO mas 'n"'
presided Is no, TO take part In the meeting OIL 'he
s,ote Roa,d OF Tax Commissioners when 1t meets
to decide the appeal
The state Beard OF Tax Commissioners Is - super
wise the assessment OF all property for the purposes
OF taxation within the state and Is to investigate ana
examine from time To time as 10 the me'hous vi vs.
sessment In the different localities and ascertain
whether all the taxable property In such localities Is
assessed at It's full and true value. 1t is also TO ap
praise the property Of the transportation and TRANSMITS
on companies taxable within the State and apporon
tie valuation made among the different TAX dietrc's
This feature OF the bill 10 radical departure from
the present provisions Of the taxation law OF the state
respecting the taxation OF corporations NOW the
value of railroad property is assessed by local asses
sors The reason given for transferring this duty 10
state Board IS that railroad property Is frequently
uneQualy assessed, being rated In some Instances ~
10000 and in others al 100000 mile IL IL hhder-
stood that the railroad corporations OF the s'se VIII
resist this provision or the bill. Chauncey NJ Depew
is reported to said that while the railroads were
frequently over asscssed and ovcr-taxed by iocai
authorities and that this made localities 1"ei goo"
toward them, yet he was unwilling That any STATE
Board should have the gigantic power of appra''is
tn, property OF the railroads. The members Oh 'hc
LEGISLATURE from the rural districts. wh' ho,icfu
this provision OF the BILL express their opposition
IN II on the ground that local assessors can better
,scertain the value OF railroad property than any
etate Beard could do. The bill says that tbe sta'e
Controller or his Deputy shall in the first instance
fix the amount OF the corporation franchise taX Ills
determination Is subjected 10 revue" py tue Do'" VI
Taxation Commissioners.
In relation 10 savings bank deposits the bill says
that all deposits above 81 900 shall be taxed IL
goes to the extent OF saying that money belonging 10
one person, but deposited in the name of another
shall thus be taxed. Since the Bill was INTRODUCED
the leading officers of the savings banks OF the State
have declared that at least 500 100000 Of the Sj-9
100000 now due to savings banks depositors would
be withdrawn il thus subjected to taxation. Nearly
all OF those who had deposits above $l 900 received
less Interest them than the smaller depo,itors, the
average rate they receive being only per cnt Any
State taxation when the interest Is now so small
would, In The opinion OF savings bank officers. lead
to the withdrawal Of these deposits The authorities
Of various cities are protesting against thus reducing
savings bank deposits, declaring that the savings
banks, being limited to State Investments, bny city
bonds and thus the cities unable 10 sell their
bonds at high price. Much OF the market for city
bonds would thus be destroyed If S30O.OOO,OOO Is
driven out OF the savings banks
Mr.. FarQuhars provision for Home Rule taxation
reads follows:
The Board Of Supervisors Of a county or the Common
Council OF city in It's discretion before the fis Of
ay In any year direct that all taxes ia such county Or
city collected exclusively for county or city purposes
the may BE- shall levied the assessed valuation
Of personal property alone upon the assessed valuation
Of real property alone, Including land aud all the Improve
ments thereon the assessed valuation Of land alone
exclusive Of Improvements the assessed valuation
Of land improvements end personal property taken
sether Such determination shall affect the su'"nt
and levy OF State tax the real and personal property
IN such county or city as provided by law.
The rural members OF the Legislature object to
this exemption OF personal property, arguing mat
n New-iork and Brooklyn. as they certainly would
do, should exempt personal property from taxation,
nearly all the personal property OF the State would
drift into those counties. and eventually all the
other counties Of the State would be compelled to
follow their example in order to retain men OF
property. Mr.. Farduhar thus far had not been
able TO pass his Home Rule taxation bill separately
IT looks as II he would have little better chance OF
passing 1t Embedded In the general State tax BILL
One OF the excellent features Of The bill land II has
. good many is to strengthen the States hold on
the forest lands 1t romlnally owns In the Adlron-
lacks under tax sales. The States title 10 some
6ooO 900 within the limits Of the Adirondack
Park is Of decidedly fragile nature and Controller
Campbell and Governor Flower anxious TO i'm.
prove the position OF the State In this respect.
The bill will not only give to the State better
title 10 its lands IN the Acrondacks but 1t will also
better enable 1t In future to retain what II gains
through tax sales.
The bill says that "Every stock corporation In
corporated under any law Of this State shall pay
TO the State Treasurer a tax OF Onetcnth Of per
cent upon the amount Of capital stock that the
poraon Is authorized to have. and like tax upon any
subsequent ncrea>r" The present law taxes corpora
tens oneeishth oi per cent the amount Of
their capital stock. The bill further says that any
foreign corporation doing business In this State shall
pay q like tax excise license fee upon
the amount Of capital proposed be employed by IT
within this State upon obtaining a certificate Of
authority from the Secretary Of State do business
here.
The bill imposes franchise tax in the following
words:
Evcsy corporation. Jointstock company association
express company and trust company except banks
ines banks and Institutions savings life
corpouons foreign insurance corporations manufacturing
corporations wholly engaged In carrying manufacture
within this State mining corpora atoms wholly engaged
mining within this State agricultural horticultural
societies association but including companies.
gas companies electric steam heating. lighting and
powes companies Incorporated organized formed
pursuant TO the law Of this State Of another Stac
country Of the United States shah pay the State
Treasurer annually as franchise license for
the privilege OF exercising it's Corporate franchise cary.
Ing on It's business IN such organized capacity this
eAte. 70 be computed upon the basis Of the amount