Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-12-06

~, 90 ,zoI ~ $l,U4o,o $40, zlo.65 $50, ZlV,5 zo.56
commission suggested that IL the Legis-
lature deemed it wise to change the
present system a, law be enacted that
Will limit the amount of exemptions
the bank may claim for n~on-taxable
securities to the aggregate OF. their sur
plus and undivided profits, leaving at
least The amount of their capital SUBJ
ject to taxation. A bill for that pur-
pose was introduced at the last session,
but did not become a law. Assessment
Of bank shares on that basis would
result In a materially higher valuation
Of such property than now prevails and
would still keep the assessed value, in
most cases, below the market value.
Rate Fixed in Many states.
I'm several States the shares of
banks and trust companies are taxed
at a fixed rate, uniform throughout the
State, applied to a valuation based on
capital, surplus and undivided profits.
In Connecticut the rate is 1 per cent,
with deductions for real estate only
on ar assessment at market value. In
New York the rate is 1 per cent. and
the assessment is on capital, surplus
and undivided profits, without deduc-
tons. This system is understood to be
working satisfactorily both to the
banks n the taxing districts.
I'VE earnestly recommend that the
Legislature enact such legislation as
will place bank shares upon a basis of
equality with other personal property,
in the matter of assessments, 80 far
as that car be done consistently with
the provisions of the federal statute,
providing that the taxes levied on ma
tional bank stock under State laws
shall not be at a higher rate than is
assessed upon other moneyed capital
in the hands of individuals.
THE board believes that the eff
cheney of the administration of our
taxing system car be greatly enhanced
by improvement in the methods OF list
ing real property.
"A comprehensive and exact classifi-
cation of real estate is impossible with
out the aid of maps.
I'VE suggest to the Legislature the
wisdom of giving to this board power
to require tax maps.
Maps Greatly Needed.
I'VE are satisfied that the general use
of maps and the consequent complete
listing and classification of land would
be great factors in bringing about a
more equitable assessment OF real prop
erty.
'In connection with the subject Of
assessments the board strongly recon-
mends that section II. chapter 12o, laws
of 1906, be 30 amended as to give this
board the power to remove an assessor
who upon proper hearing after due no.
tice is found to be grossly Incompetent.
Among the problems of taxation
none is more difficult and at the same
time more essential to a fair and just
administration of the tax laws than
the problem of securing an assessment
of property under general laws and by
uniform rules, according to its true
value. Tit State constitution n the
general tax act require such an assess
ment. The courts of New Jersey ave
settled beyond all question that true
value, within the meaning of the con-
stitution, is market value or exchange
able value In cash. The duty of the
assessing officer, therefore. is plain and
mandatory. The difficulty arises in
performing the duty. That the duty is
not always efficiently performed is Tue
sometimes to the difficulty in deter
mining the true value of the property
10 be assessed, but more often to the
inherent defects in the machinery of
assessment.
Defect I'm system, Not the Men.
THE trouble, as a rule, is not with
the men, III with the system. The
system makes it very difficult to obtain
assessors who will be unbiased judges
of property values, who will be imper-
vious to local influences, who will not
be affected by political considerations
and whose sole aim will be to secure an
assessment of all property within their
jurisdiction at its u value. The ten
ure of the assessor in many cases is
made to depend not upon a faithful
discharge of his duty under the law,
but upon the extent to which he is will
ing to disregard the law. He is bound
to feel that his own interests and the
interests of his constituency are best
served by low assessments rather than
by assessment at true value. His judg-
ment as to values is inevitably in
fiuenced by local, political, personal and
business considerations, and yet in no
other position of public trust Is there a
more imperative need for absolute In
dependence and scrupulous fidelity to
the plain dictates of the law, than in
that of the assessor.
1.-The method of choosing the assessor,
however, is less important, perhaps,
than the matter of fixing his territorias
Jurisdiction. The present scheme pro-
cides for n assessor or for n board
for each taxing district.
Advocates Redistricting Of state.
at must certainly be obvious that
the fewer assessment districts there are
the greater should be the approxima-
ton to uniformity In the assessments,
and in the standards of true value. The
people of every taxing district are in
directly concerned in the assessments
Of every other taxing district, mas
much as just to the extent the assess
ments generally are made in accord
ance with the law, will the common
burden of taxation be equally dis
tributed, and proportionately reduced.
A decided advance in securing such
assessment would. in the judgment of
this board, be made by so changing
the law as to provide for the subdi-
vision of the State into large districts
for assessment purposes. These sub
divisions should be not less than single
counties, and in fact many conditions
concur in favor of the county as the
unit for assessment:
sIJuder fhe county system We should