The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1904-10-26
FALLAC|ES Of 'EQUEL
TAXATION EXPOSED
Facts and Figures Showing How
Democratic Plan Would Cause
Loss TO Counties.
BLACKS ARGUMENTS ENPLGDED.
This County, Like the Other Counties
In the State, Would Get Back Much
Less Money For Schools.

The Democratic party is trying to
hoodwinll the taxpayers of New Je.sey
in this campaign by claiming that it
stands for equal taxation. 1t prr,eadS
that, if its plan is carried out anu rail
road property is taxed mt local Valaa-
tions and at local rates, the taxpayers
of New Jersey will he relieved from
part of their burdens of taxation.
Equal taxation of all property is pro
vided for by the constitution Educa-
tional, religious and charitable proper
~ is exempted from taxes. Tie con
stitution was adopted in 1879 and is
binding ON All property in the state of
New Jersey which is subject 10 lis
provisions. There are, however, Ger
tain classes of property which are not
subject 10 constitutional provision. for
the reason that the state had granted
special charter rights and prlvile- e.'
prior 10 TIE adoption of that eonsttul-
ton and could not take those rights
away
Under the cry of equal taxation the
Democratic party Is attacking only one
class of property, and that is railroad
property. If the railroad property al
the state is not paying its full sharc
of the taxes and can he made 10 10 81
it should he Iaat,e to do 50 In order
to understand the question il viii be
necessary To consider the classes of
railroad property, how they are val
ued, what is done with the money IL
ceived from taxing these different
classes and how the local comnuntic,
Will Ice affected if a change is made
in the present system.
Glasses of RniIrond Property.
First Main stem. which il the right
of way, not more than 100 feet in
width, with the rails. ties. ballast.
bridges, yiaducts aud passenger dep1ts.
Second Franchise. The right 10 op
crate the railroad granted by the state,
including the right to condemn land
for the main stem.
Third. Personal property, such us
rollins stock. ears, locomotives, ferry
boats, all machinery. tools. etc.
Fourth Other real estate used FOR
railroad purposes outside of the mann
stem tof II width of not more than iud
feet, such as roadbcd. waterways,
reservoirs. buildings. water tanks, WA
terworks, riparian rights dock. Whart'
and piers.
The first three classes of property
are taxed at a rate of one half Of per
cent on the valuation. or - un each 81,
600 of valuation. The fourth class is
taxed al rate of H., per cent, or SO
on each 81 900 of valuation. The taxes
collected by the state from the first
three classes of property belong to aud
are part of the states annual revenue.
The tax levied on the fourth class of
property is assessed and collected by
the state and returned To the local tax
ing districts in which such property
is situated, not one dollar Icing retain
ed by the state.
State BeHrd of Assessors.
The railroad tax law was passed in
1884 and provided that Il board should
be appointed whose duty it WAS each
year 10 value railroad and canal prop
erty aud collect the taxes asseSse |
thereon. The law fixed the rate of tax
alton ana the classes of property. This
board has been continued up to the
present time. 1t now consists of four
members, two Republicans and two
Democrats, and under the law not
more than two members of each party
can be appointed on the board.
Valuation of Main Stem.
The main stem WAS and is now val
ued by taking the full and true value
of the hand in the taxing districts
through which il runs ana multiplying
that value by IA multiple of three north
of the Passaic river and Il multiple of
two south of that boundary. In other
words, if the full value of the land ia Il
locality north of the Passaic river was
found to be 500 per acre such value
was multiplied by three, and the result
was taken as the valuation of the land
per acre for the railroad bed Having
obtained that result, they added to that
amount the cost of construction. which
consisted in the rails, ballast. ties and
superStructure. the total valuation con
sisting of roadbed. with ties, etc
Tax on Franchise.
The franchise of railroad is the
right granted by the state to operate
the road. without which the road could
not be operated 1t is intangible but
that it has value for purposes Of tax
alton has been long settled. Under
the New Jersey railroad tax law the
value of the franchise is determined
by calculating the market value of the
stocks and bonds of the railroad sys-
TEN, then subtracting from the sum
thus obtained the value of the three
other classes of railroad property and
taking 60 per cent of the remainder
for the value of the franchise for tax
alton The allowance of 40 per cent is
made i'll order to eliminate the specu-
lative value of stocks and bonds as
shown by the market quotations at the
time the value is fixed
Personal Property.
The railroads are compelled by law
to return an exact list of every item OF
their personal property, and the board
of assessors fix the value of such prop
erty, and on that value it leyies the
tax.
other Real Estate.
The railroad companies are compelled
by law to return to the state board OF
assessors a list of their real estate
holdings, outside of main stem, and
each separate item is valued and as
sessed, and the tax is imposed on all
of this property at the rate of $3.50 pei
hundred The state hoard of assessors
collects the tax and returns all of it td
the local communities.