New-York tribune., 1902-02-02
NEW TAX LEVYING PLAN.
CONTROLLER CIRCUIT WANTS CITY'S
MONEY COLLECTED so THAT IT
WONT HAVE TO BORROW.

Controller Grout is determined. if possible. to
break up the old system of leaving the cOllec-
tion of taxes until October Of each year, and
borrowing money AT 81. per cent on revenue
bonds in order TO keep the city going
This old system should be done away with as
soon as practicable" said the Controller yester-
day. 1t is expensive and uuscientifc 1t cost
US nearly 81 100000 in interest last year to run
our finances by this old system. The bankers
do not particularly desire the continuance OF
the system.
.'Of all strange features Of irregularities in our
system I suppose that none is more striking
than the fact that the city's income from the
tax levy does not begin until the first Monday
Of October in each year. This leaves the city.
between the first Gay Of January and the first
day Of October without resources with which to
meet the expenses Of the government.
The result is and always has been, that dur
ing these nine months the city is compelled from
time to time TO go into the money market and
borrow money short time bonds known as
revenue bonds These bonds will amount to
SJ0.000,0O0 SG0OO0.00O a year. and. of course
are growing larger as the expenses Of the city
government each year are increasing. For this
money the city has TO pay rate which will
probably average 3la to I per cent. Then when
the taxes begin to come in, in October Novem-
ber and December. these bonds cleared off
that at the beginning of the next year the
city starts again with empty treasury. The
city is thus constantly living upon its future
income and is d very large loser thereby; it is
needless TO say that every loss which falls upon
the city in this respect must be obtained by the
amount of taxes which levied
Thus. in the present budget for the year 1907
there is an item Of $96250O the estimated
amount Of this interest on revenue bonds to
be paid during this year. This Is much
money lost to the city and 10 the taxpayers,
because we collect our taxes late in the current
year instead of early In addition TO that the
city loses another sum which it would get by
way Of interest on its deposits if it had its
money hand during the year. For instance,
the tax budget this year amounts nearly
SOS, 100000. The administration, of course.
hopes TO decrease it somewhat. but it still will
remain considerably above S9Oo00OOO If this
sum was collected early in the year instead of
during the last three months, the city would
have an average balance in the bank during
the year which would probably be at least
S2J.0O0000. which it would get > per cent
interest least. that TO the sum of nearly
SlOWl.UOO for interest on revenue ponds Whlch
appears in the budget must be added a further
loss of 100000 100000 at least by way Of
interest which do not get Clearly the loss
to the city by the present method OF collecting
taxes cannot be far from 81. 100000 a year. and
81 this sum should be saved the tax levy would
be reduced by that sum, and the transaction of
city business would be very much easier. Be
sides this. would have the satisfaction Of
financial basis
ITO reach this change, however involves a
change in the time for paying taxes, and how
ever desirable the change. may be, il is a sub
ject which must be considered from the point
Of view Of the taxpayer as we'll OF course II
the tax levy could be reduced by the saving Of
Sl.5UO.oeb, there is very evident benent to the
individual taxpayer. / doubt. however whether
this alone would be sufficient TO make the
change easy and satisfactory for the
taxpayer. and I have been trying TO develop
scheme Of proposed amendments to the charter
in respect the levying and collection of taxes,
which will make the change from the payments
in the latter part Of the year TO payments in the
early part Of the year satisfactory to the tax
payers. l do not know whether the plan which
we have developed accCmDHSheS that, and
think the best way is to submit it TO the people
for examination and discussion.
THE plan proposed is to change the date Of
the levying Of the taxes from the first Monday
Of October to the first Monday of February, and
TO provide at the same time that the taxes of
the year TO be appOrtiOned between buyer
and seller the same as rent and interest are now
apportioned, unless the parties choose TO agree
otherwise In order to make the change easy
10 a sufficient period Of time for that pur-
pose. and 70 give sufficient inducement to people
TO pay in the early part Of the year, II is then
proposed that, having made a change of the
date OF levying the taxes to the first Monday Of
February all taxes paid between February l
and August Of the years 1903. 1904 and 1905
should be subject to a discount of 3 per cent;
that the taxes paid between August l and OctO-
ber ! should be paid the face amount of the
bin. and that the penalty for these years shall
run October instead Of December |. 1t is
then proposed. for the years 1906. 1907 and 1905
be obtained to June |: then have the fat
period cover the months of June and July, and
have the penalty begin August I, and in the
year 1909 and thereafter. TO limit the discount
20 the month Of February. let the fiat period
cover the month Of March, and have the penalty
begin on April J.