The sun., 1901-08-04
LEGISLATION AND TAXES.
HOw TEE CITY RATEIsAFFECTED
ny STATE ENACTMENT6.


vsur-Miu Prsvisisn of the Davis scheel
Law and Its E6cc<-Bad Bills of
the Last Legislature Record Bet
Ter Than That - Former Legislatures
Since the adjournment Of the Legislature
and the opening Of the tax books for in
spsotion this year. there has been great
dsai OF speculation among men who study
the tax rate from non-political and strictly
businsss viewpoint as TO the effect Of the
hank tax legislation passed at Albany last
winter on the tax rate and the amount that
Viii b collected for local purposes In
various ways. 1t Is admitted that there
= a great deal Of guesswork In regard to
the matter and that the results OF the legis-
htion cannot be determined fully until
there has been fair test Of the laws In
operation; but the Tammany Tax Com
snlssioncrs maintain that the tax rate,
which will be In the neighborhood OF 2.St
this year. would be lower were II not for
the fact that the personal property Of the
1n0t companies has been exempted from
'b6pal taxation IN the revision Of the laws.
The law does not affect the real estate OF
the companies and this will be taxed for
lDcal purposes as heretofore. and the
champions Of the law say that the persona
property tax has been OF very little conse-
Quence anyway and that the loss to the
city on account OF II will be more than
made up by the lessened assessments on
the county due to the lower State tax rate.
That there was a considerable income
to the city from the tax on the personal
property Of the trust companies b shown
by the fact that the Central Trust Com
pany alone paid In 1900 on over 5000. 900
worth OF property. and that its tax amounted
TO over tii5,OOO. The other companies
paid in proportion. and this amount u
lost to the city by the new laws This
loss shows In the tax levy for this year.
and 1t is not Offset by the decreased State
tax rate. for that does not affect the bud
get for this year which was made up in the
closing months OF 1900 II will affect the
rate next year. for the lowering OF the State
rate will be taken into account when the
budget for 1902 h made up this fall On
account OF the fact that these enactments
will not be In full effect for year and
that there is no way to find what their COM
plete result will be until they have had
fair trial there are no data on which to bas Q
an Intelligent analysis OF them.
The State Legislature has enacted gre at
many laws that have affected the tax rate.
One which has had a strong effect on it
was the Davis School law which contained
an arbitrary four-mill provision, by which
the city Is compelled TO make levy Of tina t
amount on all property for the payment
Of teachers salaries This produces q
sum In excess OF the amount required for
the purpose. but ii must be complied with
and the balance is not available for any
other purpose The amount by which
the city expenses were increased by this
law Is given at the Finance Department S
in excess Of q, 900, 600. The law has been
the object Of attack on the part Of the whole
city government. from the Mayor down.
and the Comptroller and the President
Of the Board OF Education have been par
ticularly strong In their denunciation OF It,
The enactment Of the Franchise Tax
law has put the city in peculiar position.
This law was passed In Gov. Roosevelts
term. and II put the assessment Of the
franchises In the hands Of the State Board
Of Tax Commissioners. This board, after
q great many hearings. fixed the assess
ments at a figure much higher than they
had ever been put at before. and the COM
panies owning the franchises at once be-
ian a vigorous attack on the law in every
WAY that they could. They attacked the
OF the whole measure
and then attacked 1t In detail, beginning
with the justice and the equity OF the as
sessment levied under II. Ihe result has
been that the city. has not received cent
under the law, and that there Ia a prospect
Of q long delay in the payment OF the taxes.
IA A matter Of fact, the city needs this
money. and its financial officers are going
70 be put In hole" II there Is not some
thing coming In soon. They cannot do
anything. for the law y In the courts, and
must act In all OF the suits that are now
pending Taxes under the law will be col
fected by the State Board and turned over TO
the city when the collection il made.
The record Of the last Legislature In the
matter Of mandatory legislation Is admitted
BY the officials OF the Finance Department
TO have been better than the records OF Its
DreGeCtSSOTS lHtIc W'iV Vhy WV bllh
passed that have been condemned by the
officials as entirely bad. One Of these Is
the Atlantic Avenue Improvement bill,
which makes the city responsible for one
half the cost Of the depression OF the tracks
OF the Long Island Railroad Company In
Atlantic avenue, Brooklyn. When this
Improvement was first ordered the com
pany intended to build tunnel under the
East River at about the point that the Rapid
Transit tunnel will cross. and in view OF
this the city was ready to pay part OF the cost
of the Improvement In Brooklyn This
was the arrangement entered into by the
former city of Brooklyn, but on the announce
nent that the Rapid Transit Commission
intended to build tunnel the company
decided not to have one at that point and the
plan fell through. Then the company tried
10 get the city to pay part OF the cost Of the
desIression Of the track II re-
fused and bill was introduced in the Iegis-
iat,Ire taxing one-half Of the estimated cost
Of s., 800 900 on the city anyway. The Legis-
lat,Ire passed the bih and " was sent down
for the Mayor TO act on. He held 1t for q
few days and then vetoed II. He sent
back TO the Legislature message in which
he denounced the bill In detail and said 1t
would never be acceptable to the city OF
New York The Legislature promptly passed
n over the veto and II was signed by the
Governor. II puts on the city an expense
Of at least 81 ,2j0, 600, and perhaps more.
Another bill that has been denounced
by all the city officials Is the one known as
the Bedford Avenue Improvement bill.
This bill does not In itself commit the city
to a large expenditure, but IL violates a
rule that has been In operation In the OPEN
io0 ~ al raats for over holf century in