New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-12
HALvING BUILDING TAX RATE.
A Reputation Of Arguments That Real
Estate Panic Would Follow.
The Tribune.

70 the Editor Of The Tribune.
Sir: beg 10 submit replies to arguments
that hslving the tax rate on buildings VIII
nroduce n real estate panic In New YORK
City
a because Of tho increase in the rate
Of taxation on land
First-To halve the tax rate on ouildlnso
In five years would require an increase OF
only about 90 year for each OF hVe years
For the last three years the average an
nual Increase I'm the rate OF taxation on HI
land and buildings in New YORK CITY pei
slCO OF assessed values was as foho"s:
Coats.
New York county CManhattan and IN" %,
Kings County (Brooklyn). ...............'..' M"
Queens County (Queensl :,..'..''''''''' lac
Rlchhlond County Richmond). .''''''''''''' '''"
In other words. for three years we nave
averaged in every borough. except one N
the city an increase in the rate OF taxatioi
on land nearly as great as, or greater 'hah'
the Increase I'm tho rate or taxation pro
posed. but applying TO buildings as wci''
without the "cruel panic progressed ny
owners of land who would be Obliged 10
nav a slightly higher rate or taxation VI"
land Neither has there been any gen
oral winning out of equities through the
calling of mortgages" as 1t . clalihen
would result If this increase were Kept up
for five years more.
second-Owirg to the great Increase III
assessed values of land and improvements
moreover, In all the boroughs the tax ra'e
for 1911 will be about 90 less per slVo o.
assessed values In Manhattan ana Inc
Bronx than in 1910, and about % less per
500 of assessed valuation In the other Dor
oughs OF New York City.
Third-The lower tax rate on buildings
Will much more than Offset the higher rate
Of taxation IN land.
Fourth-rhe lower rate Of taxation on
buildings will also encourage the constr
ton of buildings TO offset any possipie oe-
preciation I'm land values, and consequent
lowering Of the taxable base OF tne city
In spite, however. of the increase ~ 'ne
rate of taxation on land during the last
three wears, equivalent 10 the increase III
1--WE wears by halving the tax rate on build
,nqs there has not been any mar<cd de-
nreciation of land values I'm the city, OUT
they have been increasing. according 10
the advertisements of the real estate deal
ere. 49,
Fifth-The provision of transit lines VIII
naturally increase the value OF lan1 III 'ne
boroughs which they reach
T. Because factories and business VIII
be driven out Of New York City
First-The Congestion Commission louno
that two of the important reasons why
factories had left New York In the cases
ascertained were high land Vai1es una
high taxes The halved tax rate on piid-
lngs will reduce the taxes on puliod'sS'
The total reduction in taxes or seVerdi VT
ical factories in Brooklyn. with the nan
rate on buildings, in 1910, would nave
amounted to from II per cent TO 90 Per
cent and a minimum of about 5000 In the
case Of one factory.
socond-The result OF halving tbs rate
of taxation on buildings will be 10 cncour-
a9e factories TO remain in the boroughs OF
New York, outside OF Manhattan "heie
tho nresent low values OF land VII make u
desirable. and a relief from the present
high taxes will be afforded.
[ have paid taxes for twenty-five years
on vacant and improved land, ana nave
never lost anything ~ reason OK the as
sessment. Some years / nave Dalu as
b,ob as 81 600 in taxes. 1ne halylng or the
tax rate on buildings will be oeheht 10
real estate as a whole I'm New York CITY
AS chairman OF the executive committee
of the Metropolitan League Of Savings ana
Loan Associations and as special examiner
NJ titles under the Torrens law, 1 have had
experience In real estate operations, includ-
ing the loaning of money thereon for up
ward Of twenty-five years ] nave loaned
several millions on such property, and am
sure that halving the tax rate on nuiid-
incs will not in any way interfere with
Ioaning money for all legitimate purposes
whether on buildings or on vacant land.
w. L. DURACK.