The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-01-15

veto. He refused to sign the resolution
empowering the issuance of the bond and
that In place of that detail the City Col
lector make an entry upon his books that
the lands IN question have been s s to
to the Mayor the certificate of SALE: Ad-
hitting that the act does lot specifically
state that the procedure heretofore
followed be carried out, 1t still prescrloes
that the city may be a purchaser at any
sale of lands under the provisions OF TINS
act with the same right, title and erect
as any other purchaser" But any other
purchaser must pay the money down be-
fore he will receive a certificate OF sale.
The City Collector is a receiving. officer.
been placed in his hands for collection to
make an entry that taxes nave been PAID,
unless the money or its equivalent IS IN
his possession, and If he does so. the city
can make him produce the money repre-
scented by the entry. = Would he make the
entry, the Mayor suggests? Would his
bondsmen allow him to make such entry
without insisting upon his release ana
theirs from the responsibility or errors
that would ensue? These unpaid taxes
upon lands place the city in exactly the
same position that an Individual VINO
holds a mortgage upon a piece Of land is
in. In case of foreclosure and no bidder
appears to offer the amount of the mort
gage, it is considered good business for
the mortgages to bid the property in, and
then realize whatever he can upon II.
That is the position of the city exactly.
Inc unpalQ tdXeSsare assessed IOf LAX dr.
rearage bonds, which have annually been
issued in anticipation of the payment OF
the arrearages. To realize upon these as
sets as quickly as the machinery pro-
vided by law will allow, will eventually
produce a corresponding decrease in the
tax arerarage and assessment debt. But
the city cannot realize upon these assets
unless it can force the payment of the
arreaIages. or by purchasing the
land for the amount of liens thereon, it
must be in a position to make good its
title. in order to realize at absolute sale
whatever it can upon the assets held by
it. AS al asset it does not increase in
value by holding it, for the reason that
the liens are increasing annually at a
rate only measured by a valuation placed
upon it. If the position of the Mayor be
acceded to, the forcible collection of taxes
would cease, and a premium would be
placed upon tax Sinking. To be consist
ent, His Honor should have refused to
sign the temporary loan bonds issued in
September last. in authorization of the col
lection of the taxes of 1861 1t is hardly
good business to borrow in anticipation
of a collection which one refuses to make.
although the means are provided. These
bonds must be paid off at some time or
another; by our method they are paid at
the expense of the taxpayers. whose de-
~linquency causes their creation; by his
method. as these bonds are guaranteed
by the city. the taxpayers who pay
promptly will be compelled to assume
the burden created by those Who do not
pay their taxes. Every dollar of taxes
unpaid increases ultimately the tax bur-
den, by the increased interest charges to
be provided for annually. To follow out
the example quoted. after the sale of
lands for unpaid taxes for the years of
1894 and 1895. and the purchase by the
city of lands with some $4,000 of liens
thereon and the delivery of certificates
Of sale, we find the sinking fund account
for those years increased S2S.000. n the
gross debt increased the same amount.
The original debt of that year is not vet
@l,,@~1 - L. 49, hnA H. ~
is in possession of the asset to effect that
reduction. Steps are then taken to place
the city in possession of a good tax
title to the property, a search is
made. all the parties in interest are serv-
ed with notices. and If. after the eXpira-
ton of six months after the service of
the notices, the accumulated charges, ex-
penses. liens. ETC.. are not paid. a deed
is taken for the land, and the title vested
in the city.
SUBSEQUENT TAX BONDS.
When the city obtains the certificates of
sale the property is taken in charge by
the City Comptroller, the rents are col
lected, etc, andsdeposited to the credit of
the city. Two*years have ELAPSED n
the taxes of 1896 and 1897 have been lev
led and are unpaid. They are included
of the collection of the taxes of those
years, but have not yet been merged into
tax arrearage. bonds The Comptroller
pays these taxes to the City Collector and
Inv Aoh
reduced that amount either when the
temporary loans are merged into tax ar
rearage bonds, or by credit of payment
to the sinking funds of those years If
the tax arrearage bonds have been is
sued. In order to provide the Comptrol-
Ter with the monies to pay the taxes
subsequent to those levied in the year
for ~non-payment of which the land was
sold, subsequent tax bonds are issued
and held by the sinking fund. If those
bonds were not issued the unpaid taxes
whose payment they represent would be
apparent in an increased amount OF ar
rearage bonds of the years they were re-
speetively levied in. In our example, in
stead of allowing the taxes of 1896 and
1887 to remain unpaid and incorporate
them in the tax arrearage bonds of those
years, the total of the latter are reduce
ed by that amount, and subsequent bond
account increased correspondingly.
The advantage of that plan Is that in
case a piece of land held by the city by
tax certificate from the sale of unpaid
taxes of 1894 and 1895 should be redeemed,
the taxes unpaid and the costs, ETC., con-
1895. are not only paid. but also the taxes
of 1896 and 1897; the city is the gamer by
the compulsory cleaning up of all its
liens on the property, and the probable
saving of loss, etc, on the otherwise un-
paid subsequent taxes. So that when 1t
comes to the absolute sale the city at
tempts to realize on all its liens up to
date of the sale. 1t may be aid at this
point that our experience is that very
few desirable assets are left for the abso-
lutte sale in. the shape of lands, etc., and
the percentage of loss to the city is con-
siderable. but that percentage is not re-
duced by delay. Every year, that goes by.
increases the loss to the city. The more
quickly the Martin Act machinery. effects
an absolute sale the less is the loss to
the city. A parcel of land which is al
lowed to be carried to absolute sale is
either overloaded with liens beyond its
value or is in the hands Of owners I'M
desirable from a municipal standpoint,
from the fact that they do not pay their
taxes. Is it not manifestly to the inter-
est of the city in the first case to face its
loss as quickly as it can, and thereby to
establish a value for the assessors to go
by and make it tax paying property, and
in the second case to effect a change in
the ownership so that the taxes will be
paid? We think SO. 1t is only a short
time ago that we learned of a case.
which probably was brought to the at
tention of His Honor. of a piece of prop
erty owned in this city assessed at $500
with unpaid taxes amounting to ~, stu.
The owner had been well to do, but had
been reduced in circumstances, and was
only able to exc out a bare living; some
relations, fearful that the property would
be sold for taxes, rendered the COmptrol-
Ter 81. 700 in payment of all the lines claim
ing that the valuation was excessive, and
that the amount tendered represented the
actual value of the property. If the
Mayors plan were in force there would be
no use of any attempt to pay the taxes.
The owner would be almost certain that
ing his life without paying taxes. thereby
compelling the other property owners,
who do pay their taxes, to carry his lien.
The assessment would be carried along for
years, possibly at the sum quoted, and the
amount of liens accumulate until they
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