The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-30
lHB REAL ESTATE MARKET.
INV TAXES ARE ASSURED FOR
ANOTHER YEAR.

c,.. New Rate Meets with Approval. but
the Assessments Are Open 70 Crit.
cism--They Arc Said to Fsvor Let
Speculation and TO Delsy Building.
rhs new tax rate fixed by tho Board Of
Aldermen is slightly lower than that Of
.he last fiscal year. When the plan Of
..sessing property at its fun market value
.os adopted It was feared In many quarters
that the accompanying decrease In the
"a, rate would be only temporary. Il
was believed that the larger borrowing
capacity which the full value assessments
yould give the city would tend to extrava-
,snce In municipal expenditures, With the
result that property owners would be
eventually compelled to pay the former
tax rate on the higher assessments.
This fear has 30 far proved to be ground
less. Not only has tho rate Of taxation
remained pr actically stationary, but tho
rate of assessment has fallen. In 1909
,be average assessment was shown to be
about 90 per cent. OF the selling value.
instead OF 100 per cent. az demanded BY
law. The figures recently published by
COMPTROLLER Grout indicate that the average
assessment is now only II per cent. Of the
market value.
fall in the rate OF assessment, coupled
with stationary tax rate, might seem to be
matter for which the administration should
IA entitled to communication. It Is 30 In
dty budget has not increased In proportion
TO the city's growth Of wealth In real prop
ery. On the other hand, the decline in the
average rate OF assessment lays the officials
~ the Tax Department open to criticism
Il implies deterioration In the work OF the
deputy assessors. The general opinion
among real estate men is that the Tax
Department Is quick to raise the valuation
Of property that is being put to use as sites
for new buildings but slow to detect en-
hancement in outlying vacant land.
According to this view Of the Tax Depart
ments work. it fails to register increases OF
selling value in districts where building Is not
active with the same accuracy as in the sec
ton where construction work Is In progress
on a large scale. However, big stretches OF
outlyin0 vacant land rise substantially In
market value, both through the promise
and through the actual introduction OF i'm
proved transportation, long before the cope
q building enterprise Is extended to the'r,
Building activity tends TO follow lines
Of present continuity In construction work
while land values anticipate even the dis
tant advent Of construction work. Failure
to register on the assessment lists rises
In the market value OF outlying land a.
promptly and as fully as enhancemente
has the practical effect Of stimulating
lot speculation and Of delaying improve
ments. Their relatively low taxes enable
owners of vacant land to hold out for higher
prices at the expense Of the rest Of the
community, for prices which must be ulti-
mately translated into oorrespondingly
inflated rents.
That there Is some basis for the assertion
heard in real estate Offices that the TAI
Department discriminates In favor Of va
can't outlying land seems to be proved
BY current buifding statistics. In spite
by the rapid tranait road in The Bronx
building Is less extensive there than 1t II
IN Manhattan. Last week plans were flee
In The Bronx for only forty-tbree new
buildings, to cost 1894 900, exclusive Of
sites, while sixty-three buildings were
projected in Manhattan. calling for ar
eIrenditure for construction Of e, 49, 600
Whatever may be said Of the distri.
button OF tho tax the fact remains
that real estate Is now less heavily taxeo
than it has been in several years. Mean
while rents and frseholi values have beer
rising, ana promise 20 rlse still Iurther
hasmuch as the scarcity Of housing con
tinues. Some idea Of the prosperity en-
joyed by realty interests at present may b<
obtained from the almost complete absence
Of business In the auction room.
The demand for the ordinary run o,
property, improved and unimproved, 4
10 great that there Is no necessity for send
ing it under the hammer, except to satisfy
legal technicalities.; In the time that 4
takes to arrange for and advertise an auc
ton sale property can be turned ovel
several times at private contract. Last
week only one foreclosure GALE took place
h the vesey street exchange, and the
auction list for this week Is limited to some
half dozen entries.