New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-08

imposition OF an additional tax OF about
$4,000 600 on vacant land is going TO have
any marked effect on the building indus
try In New York. which total is AT present
about $50 90 on annually. land owner
is not likely 10 improve his property
merely because the land tax IS higher
than the building task unless there is a
demand for the building
The tax rate in New York a. present
being n little less than . pc cent. tho
proposed hin would decrease the tax on
buildings loss than per cent and would
Increase the tax on land less than Per
cent Thus n tho bin went into effect
and after lt was completely in operation.
after term Of FIVE wears land would te
paving something loss than ] per cent ID
dltional taxes ~ present property
owner must figure q return on his invest
ment Of from 4 10 per cent. and also
that the taxes. local assessments and ap-
probation or income from the property
must meet these charges else the prop
c-tv is not very desirable. The proposed
hin would merely make r. necessary for
the land to earn a little larger income
TO he profitable
II the bill went into effect tho land
would necessarily have 10 pay the taxes,
local improvement assessments and other
carving charges I'm any event. SO that
the only lnducement for the construction
Of new buildings would he reduction OF
less tnan I per cent below the present
tax rate,on buildings That reduction OF
less than ] per cent would be small in
comparison with the total charges To he
considered. such as interest on the build
Ing investment. which IS usually In the
form Of a loan: depreciation. Insurance
and other charges. II is apparent that
the money rate or the terms on which
MORTGAGE could he placed. often varying
! per cent or more. would have just as
much influence as the reduction in the
tax rate.
The price OF material and labor would
have still greater effect.
II is evident. then. that building opera
tons would be determined BY the demand
at a profit and that the reduction of
less than ] per cent would not induce
capital 70 invest unless the demand war
ranted. Thus. churches are free from
taxes and admission is free. but they are
not usually overcrowded; whereas the
aires are packed AT 81 or s. A seat and a
tax OF sl2.cooOOo is paid annually in New
| York City merely FOR the license 70 sell
J liquor.
The objects 10 be attained by the bill
I are admirable. and the change in the TAX
rate in relation 10 land and buildings
would not be nearly so hurdensome as
some opponents of the bill seem 20 fear
/ except as there might be a great many
! disturbing changes without any material
/ improvements The new transit lines will
DO more 20 accomplish the result aimed at
than could possibly be accomplished by
taxation.
Attention might be called 10 a number
/ OF different methods OF reasoning which
are a little erroneous and which some
times appear IN connection with discus
sons of the bill
II Is pointed out that the annual land
rental on the city's valuation OF $3.50
Opo. 900 is $3.50 90 COO. that this rental is
far too high, and that OF this rental only
| So. 900. Ooo Is paid In taxes Again, there
arises the question OF interest on the In
vestment or local assessments, for the
, cost Of Improvements Is entirely over
| looked in the figures given. Tho interest
on merely the assessed land value OF
| 81 M o,o 0C0 Ia s Sl70 100 or