New-York tribune., 1915-03-07

The Real Estate Association Of the
State Of New York has been gathering
information and data OF practical ma
ture as TO possible new sources for state
revenue. Ii has succeeded in bringing
about concerted action in this matter
"a a result of its work. II has decided
that one most promising way to get ad-
ditional revenue needed is to tax lntan-
gible property, income producing or non
productive. Everybody who has such
propertv valued at $4,000 or more Is
to be taxed, if a proposed bill becomes
law. The rate will be between 2ls and
4 mills. $500 at the mill rate will
net the state SO; $4,000, $40, and
| 100000, $400. -,
On this subject of taxing intangible
property the association says:
"Our president, NJ. Morgenthau, Jr.'
has wisely foreseen that any measure
prepared by and advocated by one class
or one business interest would not re-
ceive proper support. WhlIe II is auI
mitted by all. including the Mayor and
other members of the city admnlstra-
ton, the Governor and the leaders OF
the Legislature. that real estate Is TO-
day overburdened, relief must come
through measures prepared and advo,
Gated by the leaders in thought and
action of the community as a whole.
an line with the above. President
Morgenthau has called together men OF
this class, and has purposely kept the
representation of real estate interests
on this committee in small minority.
Edward <. Finch, an attorney, who Is
thoroughly versed in the subject OF
n n
the late Edgar J. Levey, when the lat
ter was chairman of the Committee on
Additional Sources of Revenue, has
been chosen chairman of the Commit
tee of Attorneys, which is now prepar-
/ ing a bill TO cover the situation, which
/ will be presented very shortly 10 the
! Legislature.
"The bill frankly grapples with the
problem of personal property taxation,
a source which has been heretofore
/ little developed in this state as a
source of direct taxation. The position
is taken that there is almost universal
sentiment among fairminded persons
that this class of property owes a
tax-paying duty TO the community
equally with real estate. No fine spun
theory is permitted TO becloud this
l nlair, obvious fact. Effort has been made
TO find way TO place tax upon the
persons who have tax-paying ability
arising from their ownership Of prop
erty, whether tangible or intangible.
Here in New York, as in other
states, where the old general property
tax at full local rate has been imposed
upon securities and personality, the re
suit has been universal evasion. Be
cause the efforts which have been made
/ in other states 10 strengthen the ad-
! ministration of this unjust law with a
view to compelling disclosures have
universally failed, recourse 10 the
classification of personal property and
| the subjection of it to taxation at 4
/ lower rate than is imposed upon real
estate has been neglected.
This plan which is now proposed
/ contains nothing revolutionary or even
novel. 1t has been introduced in one
/ form or another IN nearly all Of the
/ Eastern states where there are large
| holdings Of personal property. Mary
/ land, for instance, passed such an act
/ in January. 1896. The law went into
effect the following year. The rate. in
! cluding both state and local taxes.
amounted TO .574i, against a rate in
/ Baltimore, which had previously pre-
vailed, of about 200. The assessment
/ at the new rate increased on this class
of securities from S6000,000 TO $685.
T 7O3. .795. SO that while the rate was re-
duced one-quarter, the amount of taxes
realized was increased threefold. This
amount has steadily increased until for
the year 1915 the total assessment is
S20s, ,i31 ,7l2. Compared with the as
sessment of S6,000,000 in 1896 the in
crease is over $500 per cent. As Allan
c. Grdwood, secretary of the Mary
land Tax Commission, says, The result
demonstrates conclusively that this
class Of property can be taxed
similar results have been obtained