The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-15
Absurd Taxation.

The New York Tax REFORM assocla1loH'
of which Mr.. Lawson Purdy, well known
in Minneapolis, Is secretary, takes great
satisfaction in the act passed by the last
legislature of New York SO amending the
charter Of Greater New York as to re-
quire that land shall be assessed for tax
alton separately from the improvements.
The new law also requires the publication
Of the annual record of the assessed val
uation OF real estate in New York city.
Mapifestly more accurate estimates Of real
estate values will be made II the assessor
is compelled to value the land separately
from the improvements. This, taken with
the rule requiring publicity, should give
very satisfactory results.
But the little pamphlet which the asso-
citation has just distributed, giving an &C
count Of the act and appending some mat
ter pertinent to It, shows that, In sepa-
rating land from its improvements, New
York has only touched the fringes of the
taxation problem. The report OF special
committee Of the New York Bar associa-
ton asserts that in all New York city
there are only 2s,497 persons who pay
personal property taxes. Commenting on
this fact, the committee reported:
It is g. fact that every person paying
personal tax is robbed by being required
to pay more than his share. The depu-
ties are required to swear that the annual
record contains the names Of persons tax
able and the amount of their taxable per-
sonal property, when the deputies know,
and every one ought to know. that the
oath is unfounded, absurd and untrue.
no rN11
case, contain anything but guesses, which
in many cases are purposely made too
high in order to force an examination Of
the persons or corporations assessed.
OF the small number Of people who pay
personal property taxes in this city, it is
safe to say that the largest part Of those
who pay on any considerable amount are
trustees, executors widows and orphans.
The properties in the hands Of such per-
sons are apt to be invested in conserva-
tive railroad bonds and real estate mort
cages, which yield about 4 per cent, or,
say, $40 on the thousand. OF this $40,
the tax commissioners take from one-half
to three-quarters. If, as Is often neces-
sarily the case for considerable period
of time In closing estates, the property
is left on deposit with trust company.
drawing 2 per cent interest, the entire
income is insufficient to meet the taxes,
and the principal has to be drawn upon
for such purpose.
The committee rightly declares that
such unjust taxation would not be toler-
ated if it were not easily avoided by the
active and competent, and applied only
where the great numbers Of those affected
are persons of no influence in the business
world. The committee quotes Controller
Roberts as saying in his report in 1898,
that the tax upon personally is unjust
between individuals and between commu-
mites, and is impossible of even approx
imately just administration. It might be
added that a personal property tax Is also
a. penalty on honesty, since it forces a
man to choose between truth and confis-
cation Of his property, and perjury or
falsehood and the safety Of his property.
The only way out Of the iniquity &C.
cording to the bar association committee
Is to secure the passage Of law grant
ing local option in taxation. The evils
of personal property taxation do not beal
so heavily on the country districts as or
the city, so there is little hope In New
York, as in Minnesota, of getting gen.
eral law emitting personal property from
taxation. It Is hard to see any valit
objection to local option in taxation. Ger
tainly 1t contains more promise of reform
than wholesale legislation. It is mucl
easier to introduce reforms into small
than into a large political subdivision
Moreover, it permits the conservative!
disposed communities to profit by the ex
perience Of those more literally and rad
ically inclined. We learn by experience
other way, and the local option system
would give us many schools Of experience