New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-04-30
commissioner SAKE Says
Change Would Upset
Assessment Work.
HEARING THIS WEEK
ON PROPOSED DATES
Advisory Council Against Col
Letting Annual Levies on jan
uary 1 and July /.

State Tax Board, say the city VIII ne
bjc loser II the dates for the collection
Of taxes are changed from May ! and
November l to January and July l.
Their views on this subject are set
forth in q letter 70 Mayor Mitchell, who
will hold public hearing on Thursday
on the bill for moving back the tax
dates.
"By advancing the date for the pay
ment OF taxes 10 January from May /,
as at present, an alleged normal in
,srest charge Of s3,500000 would be
saved" say Pres dent SAKE and his as
sceistes IN the letter. 1--WE are advised
that the normal interest charge would
approximately, amount 20 $500, 900 in
stead OF s3.500.000. However, as a con
siderable amount OF taxpayers are al
ways in arrears, even under the pro
posed change IL would still be necessary
FOR the city 10 borrow some part in any
event. and, on the whole. the probable
saving in interest would not exceed
f,5OO,000
The proposed change in the tax cal
endsr moves the assessment day to
February J., keeping the city assessors
in the field from August /. As nearly
all business property is rented from
May ! al least six months is required
20 take into account the new basis of
rentals which seriously enter into the
assessed value of property. Assess
msnt day on February l moves back
one year the rental basis rs an indica-
i've measure Of value. With respect
70 residential property, the time sub
seouent 10 October | is considered.
which has the effect of moving back the
basis OF the same indicative measure of
value one wear for such property.
"Some results that will accrue are
highly interesting. By the proposed
amendment 10 Section $50. "a building
commenced since the preceding 1st day
Of MAY shall not be assessed In the
case OF an ordinary five story walk-up
tenement commenced about May ., 1916,
which would ordinarily be finished by
October l. 1916. and a six story similar
structure by December !. 1916. they
would pay no taxes until 1919. The
assessors are TO 20 into the field Au
gust I. 1916. and the annual record of
assessed valuations is 10 be finished
February /. 1917, when it is open for
Inspection and correction. The taxes
levied upon the assessment roll made
VI from that annual record will be pay
ible January /. 1918. In consequence
the owners in the foregoing instances
pay no taxes until 1919. while they are
able 10 rent their properties from Octo-
Der I. 1916. or December /. 1916, as the
ease may be- Compare the foregoing
illustration with that OF an owner of
an old tenement structure right next
door. who has difficulty in securing and
holding his tenants, but who cannot es-
cape any taxes during the period Illus
,rated.
Illustrate Some Defects.
Taking the city as a whole, the an
nual increase for new buildings during
the last six years has been. approx
mately. 100000 a year. Now, as
most Of the building is started in the
ate spring, let US assume that Sl2O,-
100000 Of Improvements are begun az
ter May ! Of this year. As illustrated
above. these improvements would not
pay taxes until January, 19l9-in other
words. approximately Sl20,OOO,OO0 OF
new property would apparently escape
taxation for two and one-third years
Hence, $3.50, 100000. or two and one
third times s120,00O.000 OF assessed
value. would be apparently lost under
the proposed plan. Further. assuming
, per cent tax rate. this would mean
an apparent loss Of S5.600000 in taxes,
q dpd4N1+ al d4fstN SdNiAb " T'f'|yf
600 in interest charges IN putting the
plan into operation.
with respect 10 special franchise
assessments. in the making of special
franchise valuations, one Of the impor-
tsnt functions Of the State Tax Com
mission. we are confronted by the
difficulties arising from the different
dates for closing Of the assessment
rolls in various parts Of the state dur
ing divers months of the year. as our
civilizations 20 the local authorities
must be made az a specified time prior
20 the closing Of such assessment rolls.
Since the enactment of the special
franchise tax law, preceding state
boards have experimental with tn
gear ending June 30 and this year emo
INK December 81. for the making OF
special franchise reports. Practical e.
perieuce has clearly demonstrated that
any other date than June 30 for the
reporting year is unsatisfactory. Last
year this commission In designing us
Lew forms OF special franchise re-
ports, Fixed June 30, making such re
ports returnsble September 80. THIS
provides . reasonable time for report
ing companies 20 close their books, pre-
pare their financial report inventory
ineir physical prosperity, and make an
intelligent and reliable statement OF
iscis. All Of the period between Sep
iember 30 and January 30 Is founc
necessary for the bureau OF special
franchises, with the limited number Of
appraisers and assistants provided, 20
Examine the data fled, conduct such
Investigations az are found necessary
and compute this large volume OF
special franchise valuations.
Under the Brown bill, the date Tor
The closing Of the assessment rolls IS
changed from March 10 20 October 10,
ana a. this commission must certify
me special franchise valuations al
itast thirty days before closing OF
ne rolls such certihcations would
have % be made not later than Sep
'smber ~. Necessarily u follows that
With corporations reporting not later
nan September 30 as Of June 30, the
Information gathered for the current
ar could not be used In the making
4 the special franchise valuations,
"hich have 20 be certified 20 the De
psriment 81 Taxes and Assessments
~ me CTS o. New York by Septem-
Der ~.
TO move forward the period Of
strtihestion Ia New YORK City four
snd one-hsf months would make u
.T-r,sibie for the Bureau 81 Special
franchises % give any consideration
. ne New York City special franchise
reports, covering property sggregat-
~ over 50 per cent Of all the spc-
rai franchise valuations in the state. /
~. present period Of reporting pro
,l'eh The bureau with nine months
m which 20 anslyze. investigate
>ba make special franchise valu- I