New-York tribune., 1908-02-10
MILLIONS DUE IN TAXES
PRETENTIVE LAWS ASKED
Special Franchise Tar Assessments
Constantly Increase.
EBy Telegraph u The Iribun. !

prevent these conditions is urged by the State Tax
Commission in its report the Legislature made
| public to-day.
/ The commissioners z. E Woodbury.. Frank E
Ferlev and Benjamin E. Hall. report that taxes re-
main unpaid a total of 81 4S3, ,1S3 7ss levied under
the special franchise tax law OF this sum sl+sS-
28e6s3 stands on the assessment rolls IN New YORK
City. In the eight years in which the special iran
! chise tax assessments have reen mads the assess
nents have aggregated 2711.s 81. but less than
| one-half the taxes due have been paid
1T is regarded by this board a conservative
estimate" SAYS the report, That there is now due
in taxes under this law approximately s2225aHo. OF
which about 81 $50 600 is due in the city Of New
| York alone"
Assessments amounting sl115.51s.os7 are being
itgated before referees while the assessments in
being tried drectlr the courts amount II
1857 515,721- To illustrate the neglect which has
been permitted in the collection OF these taxes. the
commission shows that of the special franchise as
sessments for 1910. the first year the Law was in
force 80 sS2.el1 remains undisposed Of
The report says that the franchise tax assess
nents for 1907 aggregate sS 8797. increase of
sl27. .357 33s the preceding year Eighty per
cent Of these values in New York City.
SYSTEMATIC EXAMINATION ASKED.
An important section of the report recommends
! that the Legislature provide for systematic ex-
animation OF the mortgage tax accounts Of local
officers through the state From the time the mort
went into effect there have been re-
corded S51, ,s43 mortgages and mortgage state
ments filed. But there is method of ascertaining
whether the recording officers performing their
duties properly without thorough examination
and checking up, for which there is force. On
this point the board says:
The mortgage tax law is yielding an annual reve-
nue. of approximately s5C00.Gs, one-half OF which
goes into the STATE while s tne G oneT a
by the recording officers in the various counties
either of their books or records by anv one repre-
senting the state. which has such great financial
a condition would not be permitted to exist IN
We believe the Importance of the mortgage tax
law demands adequate supervision ana this cannot cannot
proper assistance for making the necessary ex-
aminations.
The report declares that as result OF careful
inquiry and investigation the board believes as
SCISSORS in a very few districts are trying 10
live up the law requiring the assessment OF real
property at its fun value In most districts there
IS not a respectable pretence Of compliance with
the law. the result being bases Of assessment rang
ing low . per cent of the actual value OF the
property. This is due almost entirely. the report
goes say. to fear on the part of each local
assessment board that assessment at full value
would q corresponding increase IN the 'equall-
zation" made by the supervisors in apportionins the
state and county taxes among the tax districts
Compliance with the law practically will be impos-
sible until this method Of equalization is changed.
The report says:
We are OF the opinion that the causes which
give rise to this evasion Of the statute recurring
the assessment OF real property at fun value Would
be largely eliminated and h conpnance WITH Us .ss
grng possby suitable penalties If the Legis
lature would establish uniform system OF equal
in equalizing, assessments among the several tax
districts of their respective counties. ,,
In equazing every. board of supervisors should
be required, after proper investigation. to establish
for each district the ratio or percentage which
assessed value OF the real property OF sucn tax
district bears to us fu Sius o ano a p4s f o
ized value for all the tax district with mathenaat-
pGoyed by the State Board Of Equazation in equal
izing between counties Ihe Lota OF tnes+ e qua "a
gregate assessments returned by the assessors OF
f be egidence 6N upon Which the percentages the
several districts are based should be preserve
and the table of such percentages employed N
mai king the equalization should be published as q
ne or moe newspapers published in the county.
While il is probably true that this would not en-
tion and would not entirely obvate this violation
OF The stsfuts aid II n s doing by removing the prn
ciDsI causes which lead to such evasion and VIOLA
@ 9 aPd n any by force of Of pubhc opinion woud
prove 10 be a powerful factor in compelling JUST
and fair equalization
TAX LAW AMENDMENTS.
The board recommends several important
amendments to the tax laws to remedy shortcorn-
ine-S notably as TO the assessment Of real prop
eft owned bv non-residents and Of property
situated in more than one tax district II urges
the Legislature to authorize the employment OF d
ststistician 10 tabulate information on various
phases of the tax problem
Assessment of the real property OF railroads
+be commission points out is erratic in the Va
rious tax districts. unsatisfactory and Tar from
Uniform" Wide discrepancies are found even IN
adjoining tax districts with almost similar cond
lions prevailing This is due to lack OF kno"l-
edge about values of this kind OF property ana
freouentIy results, the commission, IN
threats from the railroad companies OF l1tsalon
If their assessments are raised says the com
mission.
We are firmly of the opinion that some method
s1o1Id be devised for the valuation by experts %
this class of property in each tax district hls M
couId be accomplished by requiring boards o.
s11pervisors TO cause appraisal and valuation
OF suCn ftte kror-Iedre ~ the value Of this
cfsss nj pToperty These Valuations would not b.
very great ala 70 bI ITt - +b.n3 ~ ~rive AZ fiIs1
Tne9ts and would sn4ois t anpZj1E the ratio
which they are employing IN the ass1ssnent OF
y.oTid tend TO uniformity in the assessment OF
this class Of PROPERTY and also :" lessen - me si
Of these assessments
Personal property, while constantly increasing
in volume and value. remains almost untaxed the
report declares. adding that it IS practically i'm
possible 70 tax II on the basis real estate.
The board saws;
we are firmly convinced that the most feas16Ie
solution of the question solution which Eim
W@oF5 @ - } ne sresresf amount Of revenue with the
least friction and which VIII ne capanIe OF pracI
pTorertv into appropriate classes end taxing II at
Axed rate according TO its class This policy
is already established in the state as IS evidenced
hv the present method of taxing mortgages
eto-,s of banks trust companies and other similar
fduciary corporations
We believe that this subject is worthy the
most consideration of tbs Legislature. and that
the intolerable conditions respecting the present
methods OF taxing personal property should be
innuired into and earnest effort made to effect
g proper solution Of the question without further
delay
The report ends with the following summary;
aoSaeSef vaue OF property xfrb he