The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-08-13
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MUNICIPAL TAXA ZION
Ru Victor Rosewater, ., k1anapi.a En-. OIL, o.
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alarm against "the starlingly dispropor
Tomato increase In the cost oil governing
our cities" The immediate cause oil these
| apprehensions was a comparative exhipl
in the report of the comptroller OF ing
I city OF New York. showing that from ls6S
| to 1880, the municipal budget OF the me-
tropolis had grown from $i2.WO,Oo &c
some S3O0O0,OOo We can only imagine
how much stronger the words of warning
would have been had it been known tha'
by the expira ton of another twenty years
the annual revenue of a still Greater New
York was to mount close to S12O,oouV, or
nearly ten times in 1902 what 1t was IN
1860.
What has occurred in New York IN
reference to its municipal finances has
in every progressive American city, The
result Is that Notwithstanding our trc-
mendous national development reflected
in billion-dollar congresses, the expansion
of municipal income and outgo mas gone
on with equal rapldity, and while our con-
tributions to the support of national and
State government figure up to huge pro-
portions, the burdens that are felt most
keenly and come closest home arc the
burdens of municipal government
AT best we can get but an inadequate
idea of the colossal sums required each
year to liquidate the municipal bills Just
" seCuie an uppIOSlHldte perspective l.
footed UP the latest table of statistics Of
cities compiled by Commissioner of Labor
Wright, C3ulletin September. 1902, which
includes only cities upwards Of 10000
population and found that In these 1877
incorporated cities the aggregate current
income for the year was $436, $685.
My subject, however. Is not municipal
revenue. but municipal taxation Amcri-
can cities have many sources Of income,
but taxation Is by far the most impor-
tant. OF the total current receipts Of the
city of New York of $11S74O, 500, 76,SS6. 09l
came in as proceeds of the property tax,
s2.3Gi.636 more from the franchise tax, and
s5.04S.7SS from special assessments. OF the
s43G9oS.233 OF receipts of the 1877 American
cities over $4,000. S269 ,9SS,421 came from
the property tax alone. Boston, Phila-
delphia and Chicago each take in nearly
S20,O0O.0hO every year as proceeds Of the
property tax.
These figures emphasize the vital part
the property tax plays in filling the mu-
nicipal pocketbook and the necessity OF
recognizing existing conditions which
make impracticable so many Of the
schemes proposed to produce the mile-
MUM in municipal taxation. Our three
fold form of government-national, State
and local-each sustained by moro or less
restricted by the constitutional limitations
peculiar to the United States, preclude US
from utilizing to any extent the expert
ences of foreign cities and compel us to
look to ourselves for the solution Of our
tax problems.
No matter then what may be our ideal
system Of taxation. no matter how many
of the public utility services may be
municipaliZed and made self-sustaining
or even revenue producing, no matter
what new sources Of income may be de-
veloped through license fees. occupation
taxes, franchise taxes, ETC., the backbone
of the municipal income in this country
is and must for some time remain tho
property tax levy. To abolish this tax
is out of the question. for It's loss would
bring every American city to speedy
bankruptcy; no adequate substitute has
been devised for it: the ever widening
financial needs OF the municipality quick
~ absorb all newly provided revenue with
out appreciably relieving tho pressure
upon the regular tax rate. For the pres.
ent and immediate future the task must
be to make the best of what we have
The favorte remedies suggested for
prevailing tax abuses in our cities are
separate sources Of revenue and local
option in taxation The two plans are
often urged as property Elementary
but they do not necessarily go together. |
we have many separate sources Of rev. |
cnue for city and State without local |
option, and we may have local option !!
without separating the sources of reve-
nue.. Many students think wisdom re-
quires the State to support Its treasury
from taxes on corporations, inheritances,
Ste. and to release to the municipalities
exclusive jurisdiction over real estate In
the larger and Weather Commonwealth
this tendency Is unquestionably marked,
but In the vast majority Of our States,
especially where agricultural pursuits
predominant, the stage has not been
reached and cannot soon be reached
where the State government can realize
sufficient revenue to It's needs unless
pieced out with general tax levy. On
the other hand. II we are ever to have
a comprehensive and unified system of
taxation 1t can be achieved by local OPP
ton subject to express limitations only
because with each municipality striking
out haphazard the twin evils of double
taxation and complete tax evasion can
not we'll be avoided.
The cogent reason why the municipality
should have independence In tax matters
is that where State and local taxes are
both imposed on one assessed valuation
the former being apportioned, the inevi-
table temptation to competitive under
Is irresistible, and to avoid
an undue quota to the State
treasury the city assessment roll Is re-
duced to ridiculously insignificant pro-
portions and the city tax rate corre-
spondingly inflated to apparently contls-
catory figures. This dilemma has been
olivia ted In certain cases, not by separat-
Ing tho sources Of revenue for State
and city, but by providing the city with
machinery for assessment. The
same property Is thus assessed twice
once for State purposes at say, 20 or 30
per cent of its selling price. and once
for city purposes at full value. This
s. of course an expensive duplication Of
a assessment work, but 1T has advantages
az well as disadvantages
The essence Of justice In taxation Is
equality and uniformity-an equal burden
on all similarly situated and an unifor-
nifty of application to all within the same
jurisdiction. Perfect justice is not to DO
expected In any system of taxation, but
there is no insurmountable obstacle in
the way of attaining substantial justice
Success or failure after all depends direct
~ upon the ability and intentions of the
officers who administer the tax machinery
and the character OF these officers de-