New-York tribune., 1902-08-18
Governor OdelI's Taxation 6Oork.
By Assenblyman Gherardi Davis.

No general statute has received so much consid-
Grafton during the last four sessions OF the lesis
lature the Tax law. ft is Il subject OF great
Importance to every property owner in the State
and 1t indicates the Irresistible drift OF legislation
to this subject that, both under Governor Rocse-
welt and Governor Odeli the question OF taxation
should hae received an unusual amount of atten-
ton The power to tax is the power to destroy
as Chief Justice Marshall said. and in considering
the tax laws the Governor and the legislature
should ''be free every other control but re-
gard to the public good and to the sense OF the
people
The question of taxation is very dry subject
Thousands of people pay taxes, and probably "
per cent of the taxpayers complain OF the size OF
their bills to say that IN the city OF
New-York not half the taxpayers ever look over
the schedule printed on the bills. And yet this
schedule tells an interesting story 1t gives IN
sufficient detail the cost of running the CITY Oh
New-York and when 1t is considered that the city
expenses are about three times those of the state
# is very easy to overlook the item OF the state
tax of the abolition of which much has recently
been talked. In 1900 and 1901 it exceeded IN amount
the appropriations for any city department except
the police and the schools and the only otner item
greater than the State was the interest on the
city debt. Next year 1t will amount to only aooul
onetenth OF this years about one-fourteeht3
Of last years and to about one-hfteentn OF the
tax of 1860. How this was brought about ana 70
whom the credit of this reduction is due are wen
worth considering.
The state tax is to many people a mysterious
part of the financial system of the State II Is
subject with which politicians are apt 10 1oSsle'
and it is a subject which theorists delight IN dls-
cussing It is also something Of which every tax
payer makes the acquaintance annually II Is
briefly stated the tax by which the State each year
raises money for its running expenses and the cana
debt over and above its available surplus ana Ics
annual tax derived from the liquor tax, the trans
fer tax the corporation tax, the tax on Oanks
and the other taxes which by general statutes are
rayabIe by the persons and corporations taxed d.
recty into the State Treasury and not through the
medium Of the tax collectors OF the several couh-
ties.
When. therefore. 1t is announced that Governor
Odell and the Republican legislature have reduced
the State tax 10 almost rothins dn actual hsures'
to a rate of only 13-10o OF l mild, what IS meant
is that by careful financial management the eA-
penses of the State have been so controlled, and
by scientific legislation the amount OF money palo
into the State Treasury by indirect taxes has been
so increased. that the States income. together
with the available surplus, nearly equals tne
States expenditures, budget, as 1t might De
called. The I3-IOO OF a mill tax rate would per-
haps not have been necessary were it not that the
constitution (Art z Secs. 4-10) provides that the
canal debt shall by direct State tax. ana
the legislature in 1895 Chap 19 fixed the rate OF
that tax at 13-lO0 of a mill. Thrteen-one nun
dredths OF mill means 2-l0 cents SlG0, an al
most inperceptibIe tax. and to which no one
would pay much attention but for the question OF
equalization of valuations. to which reference Will
be made further on.
FIXING THE RATE OF THE STATE TAX
The rate of the State is fixed each year oy the
legislature by special act. passed at the very end
of the session. when the total amount OF the appro
prations is known. 1t varies annually, but FOR
many years has not exceeded three mills on eacn
dollar OF valuation The method of determining
the amount OF the State tax. and hence the tax
rate is briefly follows.
The legislature (acting through its Finance Com
mittee OF the Senate and Ways and Means Com
mittee of the Assembly, ana the State Controller
during. will say. the session OF 1901. determined
as closely as possible the States income from the
various sources referred Ci4uor tax. trans
fer tax etc.). The income which will be received
from the Banking and Insurance departments. the
Railroad Commission and the Excise Department
can De, by experience. quite accurately nguTed Tne
inheritance varies Of course with the value OF
the of persons dying during eacn fiscal year
In connection with this side Of the account, the
States surplus vas also considered. this sur
plus may be spent by the legislature In payment OF
appropriations. and much as Is available Is so
a appIed.
The next to be taken Intc consideration was the
total Of the sums appropriated by the legislature
at the pending session This of course, was sim
pie and the legislature thus had before It: o. The
States estimated incoms and cash on hand-that
is its assets-and CO the States proposed expendi
tures-that is. Its debts for the current year De-
ducting from the other. gave the amount to be
raised by State taxation The rate OF that tax
was then determined follows:
The Supervisors and other assessing officers OF
the several counties each year fix the assessed
valuations OF real and personal property In the
spectiVe counties for their local taxes. These
sessed valuations had been certified 10 the Control
Ter in December 1890. required by law by the
Supervisors of each county. and the aggregate of
these valuations was one nf the elements used in
determining the rate OF the State The other
element was the amount be raised by State
alton. above referred to- Dividing one into the
other. gave the rate of the State tax. This rate
was fixed in 1901 by Chapter 643 OF the Laws of 1901
(became a law May 81 at 2-lO OF a mill In 1902
il fixed 1900 of mill (Chap. 6l5, L. 1902.
In order 10 determine how much each county
owed the State as its share OF the State tax, the
assessed valuations of the several counties which
had been certified TO the Controller were equal
ized in September OF 1901 by what is known as the
up of the Lieutenant Governor. the Speaker of the
Assembly. the Secretary Of State the State Con-
troller. the state Treasurer. the Attorney General
the State Engineer and the three State Tax Commis
sioners. and by statute meets in Albany in Sep
tember of each year. 1t then examines and revises
the valuations of real property OF each county of
the State.
After having raised lowered the assessed val
ues. accordingly IN the boards opinion they are
too high too low. and produced a Just rela-
ton between the valuations OF real proDerty in
the state-that is, after having "equalized" these
vaua ations-they definitely determine for the pur-
pose of the State tax the amount of the assessed
values in each county. The figures may be
the those of the locally assessed values but
generally they not. While the result of the
equalization may be different from the figures in
the several counties. the aggregate valuation must
by statute remain the same In the end so tnat
necessarily II the values OF one county are re-
duced, those Of another county must be raised.
The values thus determined amounted. as shown
BY the equalization table OF 1901. 81 707 for
NewYork County. the richest of the State iand
paying one-half of the total State taxi, and for
Hamilton. the poorest county s. s2s $50 For Al