Iron County register., 1893-10-19

that will compel the assessors to value
every inch of land within the city limits
at its actual selling price.
The ground rents derived from the
Randall farm property OF twenty-one
acres in 1887 were more than $500, 600.
showing the actual value of the land to
be over &c, 000, 900. on which the tenants
paid not only ground rent OF five per
cent, but also city taxes at .0216 ON
two-thirds of the total value OF both
houses and lands, which, as has been
shown, would make the assessment
about equal to the value Of the land
alone. Thus these people after paying
ground rents to the amount of $500, 600
q year pay city taxes amounting TO
$129, 600. Under q system of taxation
that exempted buildings from assess
ment their taxes would not be increas-
ed, and would probably be lowered.
and those of them holding long leases
would be encouraged to build.
The whole area included within the
city limits of New York is 26, 500 acres.
of which 900 acres are on Manhattan
island, and s.905 of these lie south Of
Forty-second street The twenty-one
acres of the Randall farm constitute,
tAcIS1OIC, Tile Ou0 AuAoICO 6uu kAty~
sixth part of the area below Forty
second street. AS this part is worth
Sc. 900, 600, the bare land below Forty
second street is worth 1855 times q, 8,OO0,-
900, or 81, 116, 000, 900. The assessment
shows that about forty per cent of the
total value of real estate lies above
Forty-second street, which would indi-
cate that the value Of all bare land in
the city is about 81, 500, ,OOO, 900. This
shows that, taking the city as whole,
the bare land is actually worth more
than the present assessed value Of land
and buildings, and q simple calculations
will show that if it were assessed at its
selling value tax rate of .0174 would
yield sum larger than that now OBJ
tanned by tax rate of .0216 on an
assessment of 81, ,254, 491 ,S49.
Apply this rate to the two lots al.
ready cited by way of illustration, and
we shall see the results of the change.
At present the vacant lot worth $40. OOc
is assessed at $40, 900, and pays tax Of
s216, and the house and lot together,
worth 200, pay tax OF $4S2, the
total tax on both properties being $64s-
Under the system proposed each lot
would be assessed at its true value
$50, 900, and the tax on each would be
$34s, yielding $696 on both properties.
There would be saving i'm taxes to
the owner of the improved property OF
$S4 year, while the tax on the vacant
lot would be advanced &132 year. Tho
increase in revenue thus shown would
not be general throughout the city, for,
in the instance supposed, the vacant
lot is in the improved portion OF the
city and above the general average
value of vacant lots. In this case the
property taken for the purpose OF illus
tration consists of two lots of land worth
together four times as much as the
building erected on one of them, where
as the fact probably is that in the
city as a whole the land is worth be-
tween two and three times as much al
the aggregate value OF the buildings.
Hence, though the increase of taxation
on vacant lots would be general, it
would not be so notable in the districts
where buildings are scarce as it would
be in the instance cited, and the total
of taxes would not be increased Such
instances as that used in illustration
are by no means rare, however, in the
built up portion of the city and they
serve as well as any to show the results
of exempting buildings from taxation.
The two properties would now pay the
same tax, that on the improved prop
erty being lessened and that on the
vacant lot being sensibly increased
Holding land idle for q rise would at
once become less profitable, and the ad-
vance in selling value would have to b
very rapid indeed to make good the in
terest on the investment and the large
ly increased taxes. In the instance
cited the owner of the house and lot
worth $50, 600 could at very moderate
estimate readily rent the property for
81, 500 a year. But of this he must at
present pay $432 q year in taxes, and.
allowing y$268 for maintenance and in
surance, he would still have left 81, 800.
or six per cent. interest on his total in
vestment. The reduction of $84 in his
taxes under the new system would
doubtless be added to his profits until
competition compelled him to remit il
to the tenant,
On the other hand the addition or
1882 to the tax on the vacant lot would
be SO sensib1y felt by the speculator
who was holding it idle that it would
bring pressure on him to build or to
sell to some one who would do so. He
would be under an annual expense Of
81, 200 for interest and $34S for taxes. or
81, ,54s, all out-go, while his neighbor
would be enjoying whatever advantage
the speculator was receiving from tho
increase in land values while receiving
interest on his investment and some
thing more. The result would be that
even those who wish to invest in lands
for the sake of securing the increase In
values due to the growth in population
would find that they could not profita-
bly, do so unless they put the land ia
use during the period of waiting. Tha
effect on those spectators who make q
business of buying and selling land
any thought of holding it fof
any great length Of time, might and
probably would be embarrassing, but
that is matter that only concerns such
persons am not aware of any real
service that they have rendered to tho
public that would justify them in ask
ing that we should forego the advant-
age of a great and benefcent reform
for their sake.-Wm. T. Croasdale, i'm
the Standard
Taxing Ghosts and Reflections.
A few years ago Connecticut passed