New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-31

Board Is determined 70 make every ef-
fort TO induce the Legislature 10 enact
some form OF tax measure which Will
equitably distribute the obligation so
that an classes and kinds of wealth
will be required TO pay by way OF tax
a fair and reasonable proportion OF the
cost Of maintenance OF state and city
government. The Legislature possesses
the power TO fix the rate at which real
estate may be taxed. | believe that 2
per cent on the fair taxable value is the
maximum which owners of real prop
erty should be called upon 70 contrib
ute.
Landlord Must Shoulder Tax
II may be claimed that the real prop
erty owner is only the direct taxpayer
and that the whole burden is shifted 20
the tenant. This argument cannot be
sustained Taxes must be paid on va
cant land and untenanted buildings. IL
is only in a comparatively few in
stances that the landlord can shift this
burden to the tenant. In any event,
the owner is directly obligated for the
payment Of the tax, and must, II he
wishes to retain the ownership OF his
property, pay, and this without regard
TO whether or no he collects anything
from tenants. A state income tax based
on the recommendations contained IN
the report Of the Mills committee, ! am
inclined TO believe, would receive
serious consideration and possibly IA
vorable action In the coming Legis-
lature. The first duty which real estate
and tax organizations owe is well
planned, aggressive campaign TO i'm
press upon the Legislature the neces-
sity Tor prompt action at its coming
session.
On December Of this year a prop
orty assessed at S2.S00000 was sold at
auction for 100000, the deficiency
being nearly $500, 900. This is the only
square block of land in one ownership
in a section which a comparatively
short time ago was enjoying great
prosperity. However, the amount real
lied at forced sale is not necessarily a
real criterion of value But when the
announcement is made at the time Of
sale that the plaintiff in the action will
take back d purchase money mortgage
Of more than SO per cent Of the actual
bid in price, one is compelled 20 aban-
don this more or less accepted theory
that a forced sale is no criterion OF
value. Granting that values in the i'm
mediate neighborhood have not mate
rally fuctuated. at least within the
last two years, il is safe to prophesy
that present assessed valuations can
not be sustained. This being so, the
real estate tax must, in proportion to
the declining values, increase and pos
sibly become more burdensome than 1t
would be pleasant to speculate on at
this time.
It is reasonable TO deduce from all
Of this that the first and most vital i'm
pedimcnt TO an active real estate mar
ket is not only the increasing tax rate
but the constantly increasing perma-
nent debt of the city, which IS iirst
charge or lien against all real estate.
To insist on economy IS imperative,
even though. if the most rigid econo-
mics were practised, the total saving IN
the city budget would be comparatively
small when Transcribed into a tax rate.
Future extravagances must be yigor-
ously opposed. Appropriations by the
Legislature and the Board Of Estimate
should be carefully scrutinized BY every
taxpayer and only absolutely necessary
appropriations should be made.