New-York tribune., 1915-03-07
LOOKING NORTH IN LIVINGSTON PLACE
Nav Tax Intangible Assets
If Proposed Bill of Real Estate Association of State
Becomes Law Many Non-Property Owners
Will Help Meet State and City Expenses.

in other states, such as Minnesota.
where, with a rate Of three mills, IN
troduced in 1911, the assessment has
jumped from about Sli000000 in 1910
TO nearly 5000. .000.000 i'm 1914. IL is
/ interesting to note what the Mime
sofa Tax Commission says regarding
this tax after It has been in operation
only two years: We believe n IS de-
cided Improvement over the old method
Of taxing money and credits, because
il is more equitable and Will eventu-
ally produce more revenue than the old
system did. Above all, II makes for
good citizenship, because It reduces
the premium on dishonesty and per-
mits men to be truthful in their tax
statements without the fear Of having
their property coniiscated in excessive
tax rates
"In Pennsylvania a fiat rate OF four
mills on each dollar of value Of in
tangible property, uniform for the
whole state, is imposed. Ihree-fourths
of this tax has OF recent years been
returned 70 the several counties, the
remainder going into the State Treas
ury, but. beginning with 1914, all Of tho
tax from this source Is TO go into the
local treasures. The amount of prop
crty assessed shows the same remark
able growth from year 10 year as IN
other states. From about Sl60,000,00O,
in 1885 VIC find over S600,0O0,OO0 in
1894. about S900.000,000 in 1904 and
about 81 1,500,00O,000 in 1914.
"The proposed bill will follow very
closely the precedents established by
Pennsylvania and Maryland. All in
tangible personal property which Is in
come producing will be placed in one
class and assessed by state authorities
at rate which will probably be estab-
lished at between pig and 4 mills. The
proceeds from this tax will probably
be divided. 20 per cent going 70 the
locality and 80 per cent 20 the state.
Experts have figured the holdings
Of this class Of personal property
which should be assessable with an ef-
ficient administration of the law at
$4,000. 900 in New York City alone.
A 4-mill tax should therefore yield
Sl6.0O0,000 which would be a very sub
stantial new source Of revenue. II the
experience Of other states IS duplicated
here i'm New York this income will in
crease by leaps and bounds.
"As TO other forms Of intangible per-
sonal property, and as 20 tangible per-
sonal property Of all kinds, Il is also
proposed by this bill 20 establish a new
classification and "A rate Of not more
than 1 mills. At the same time IL is
proposed 10 remove the present proyi-
sion OF the tax law allowing exemption
for debt. under which provision practi-
cally all of the personal property in
this state now escapes taxation. IL is
estimated that by removing this proyi-
sion the jump in assessments on in
tangible personal property above re-
ferred 10 will be duplicated, and that
another source Of revenue other than
real estate will be provided. In order
70 provide for the small householder
and for the farmer, who requires a GER
tain amount OF personal property TO
carry on his occupation, and in order
to make il less difficult 20 administer
this proposed law, the present exemp-
tion of 81 900 for personal effects, etc,
will doubtless be increased 20 at least
$500.
"Some Of the ablcst lawyers OF the
city and state are assisting in the
preparation Of the proposed measure,
and suggestions will be welcomed by
Edward r. Finch chairman OF the COM
mlttee.
THE Mayors committee on taxation
has been requested 20 lend its support
TO this bill, and I'm order that IL may
receive all possible information on the
subject il has called a hearing, 20 be
held next Friday afternoon. March II,
at p. M, at the Office Of the Mayors
Tax Commission, I'm the Municipal
Building. Professor Charles J. Bullock,
Of Harvard, who recently said that the
experience of Pennsylvania and Mary
land should lead TO a revision of the
opinion that IT is impossible 10 collect
any sort of a tax on intangible wealth,
has promised TO attend. az has also
Allan c. Girdwood, OF Maryland, and
Alfred f. Holcomb, of the National
Tax Association"