New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-11
TAX BOARDS REPORT.
WANTS LAWS AMENDED.
World Compel Corporations to Pay
SDcciqi Franchise Tares.
By Telegraph TO ne tribune ]

Albany. March lo.-Genuine public service can be
done 5he annual report OF the State Board OF Tax
Commissioners declares. ny the enactment Of q
law which win compel tory corporations pay
,sc,- special franchise taxes. This report which
VIII e presented 10 tho Legislature tomorrow
ui-h:. makes concentrations fo- legislation rem
eay.rg shortcomings in the present law. There
Should % a Jaw giving ~ the board power 20 re-
dee its assessments ia the local equalization: re-
CURING that taxes be paid before any action fo-
review OF the assessment might be brought. and
giving authority Ter an action 10 restrain corpora
cot paying from the enjoyment OF thei- fran
chlss privileges
o. this point the commissioners-E. f Wood
bury. Frank T.. Perley and Benjamin E. Hail-rec-
ommeud
First. that THIS board he given the power. after
Il has fixed a special franchise assessment at its
full and time value, 10 inquire into the rate Of as
reduce lis valuation 10 the basis Of such local as
second, thar The corporation or individual as
sessed shall be required 10 pay the tax levied upon
as condi5ion precedent to the right Of fe1ie8
thereof on The ground OF inequality or overvaua-
This follows the same principle as prevails with
The state Controiier Viii proper provision for re 20
fund in case the assessment is reduced this would
assessed and would relieve The municipality from
- meet current eXpeases M fte Iui tS @ %rlTI
thus has been equalized by mis- board the taxes
levied thereon are not paid the way then would
he clear 10 sell the property and franchises for
We also would recommend in the same connec-
to1 as a cumulative remedy. that provisions he
Of he roperg OF fil9n 4r c 1ao
porations, and 10 restrain them from the exercise
paid. ''0
Referring to the Special Franchise Tax Law. the
report says:
Affe ,,si lest Of eight years during which it has
cial Franchise Tax law has vindicated its enact
this board for the year 1875 amounted to Sl7 95l so
ms , vas an increase II valuations Of sos
against ls5S corporations, firms and individuals
The abolition of all direct state taxes leaves the
SERIOUS interested localities the sole benehcares
Of these added revenues, but il becomes none the
less The duly Of the state 10 see that this important
EFctinIy submitted that the legislature can per
sofm q genuine public service by enacting
specisi frarcbse rsIes The ini,,sTne of the coIdi
ton presented by some corporations in refusing
lay their taxes until after prolcrged litigation
which viii compel The prompt payment of these
rhs records show that there is now due total
or nearly SIS 100000 unpaid franchise taxes in
these unpaid taxes reach The large total of SlSg76
ES5d In Buffalo s25S s42 IS remains unpaid: in
sTracase ss IN T T9g ss Sc: in New ~ Ro
ehelie $50 IS; IN Albany S;s45 sS and In Roches-
paid any special franchise tax. although the law
ago. IN this connection it should be stated. how
Guced 70 the local equalization through proceedings
pending in the courts, but such reductions. II
~ back special franchise taxes due the various
cities Of the state
TIE tax commissioners take the position that Iiti-
cation technical points should be allowed
10 delay the prompt payment OF special franchise
taxes. They call attention the varying rates OF
equalization which prevail in different parts OF the
state. The practice OF corporations is TO fight
their special franchise assessments on the ground
that they based the full and value,
whereas all other classes OF assessable property
ere taxed on the basis OF The local equalization
This defect the system works what the courts
hsve decided 70 be injustice. and the nvariable
rule has been reduce from 100 per cent 10 the |
local equalization the amount Of the special
franchise assessments fixed by the state board |
Referring TO the attitude OF the courts in this |
matter the report continues:
II has become The settled belief of corporations
snd individuals that they entitled to reduction
iu their assessments, a matter of right, in all
Eases where wits q esToTaTi are taken to review
belief that IN many instances advantage is taken |
% these conditions 20 secure delay in The payment
Tie legal department Of the state seems to have
rahsh ne poslOh lIel tIie .baiS
fNug tho fun and fair value OF The property as |
fessed. and that such valuations may be further
inquired into ana proofs Of adoiuonai L4ige siVfn
heard 20 raise that question. and il not whether
position u that respect. IN view Of the fact that
under TIE statute the Wrt ot certiofarl must run
:" made 10 To any other board or officer unless
by permission direction 81 the court or judge
granting the writ In any event the proposition
opens a new field OF litigation, and may result lh
indefinite posponeileHi OF me pas lheIll OF S"iiet
ti5u 81 these taxes.
We are to assume that eventually the corpora
fons and individuals assessed for special iran
c6ises viii b. compelled 70 pay their taxes upon
the proper basis OF taxation: but what the
municipalities directly and vitality interested IN
s. The prompt and timely payment Of these taxes
fhem Of the moneys needed 10 meet the current
expenses Of the municiDality. and ofttmes require
o5viate such conditions these municipalities are
looking O. tho Legislature for relief
he nTiU q in fho
way Of immediate enforcement Of the payment of
r'lese taxes are found i1 the fact that the cor
poration or individual assessed has the right 10
have The assessment mace by the State Board Of
~ other assessments in The locality FOR which the
assessment is made
Another important amendment 10 the Special
Franchise Tax law which the hoard recon-
Iaeuds would repeal amendment to the original
law which enacted by the Legislature OF 1901
Isg the change made six years ago. crossings ~
streets highways and public places. where such
crossings were less than 30 feet long we're ex-
cudee from taxation special franchises The
immediate effect Of this amendment WAS TO reduce
THO number - special franchise assessments b.
lnorr tlian lG1 and take aggregate Of more
Than Si1Gs0 az of property from the special fran
c 50 assessment rolls The greater part Of these
Nenes rct5 scented railroad crossings I'm tie cities
ard villages Of the state. The report says:
IN such lorslitics these rights are OF very suir
etautial value. an many instances they much
l' e.s.essz i,,- rs hoard on account 81 tre;r
places 'Tbs nroperiy right. indisputably OF sub
fsnf;sl ,l1e is not taxa under the present law
and this oard Is unable 20 see why u should not
bear It's lust share Of the burdens al government
Another important amendment suggested by the
board would give to interested cities villages
the yi,,. n become parties 10 the various actions
H. court by corporations in fighting their special
faw