New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-24
HOW TO GAUGE
REAL EST. VALUES
Methods Used in Deter
mining Full Market
Worth of Property.

How to determine the full value OF
taxable real estate is question con-
tinually asked the leading appraisers.
What the State Tax Department consid-
ers the full value is set forth IN
manual recently issued for the instruc-
ton of assessors. "The present state
law requires" says "The Real Estate
Record and Guide" that all property
shall be assessed at full value. The old
direction was that real property should
be assessed at the sum for which II
should be appraised in payment OF a
lust debt from a solvent debtor, and
the phrase in the New York City
charter is at the sum at which II VIII
sell under ordinary circumstances
Neither of these tests specify mar
ket value term often misapplied by
assessors. but the courts have held
that both statements mean market
value. though there are properties
which are unmarketable, as every ap-
praiser knows, and therefore have no
market value. 4 certain dwelling on
I'd av. was recently judged by the
courts to be Unmarkctable by reason
Of building restrictions in the deed.
How. tnen, is such a building 20 be
appraised? Notwithstanding, the state
Department of Taxation adheres 10 the
old phrase in its instruction TO as
SCISSORS. and gives this direction:
Real estate does not, like many com
mOdities, such as wheat, flour and mar
ketable securities, possess definite
market value. The full market value
is therefore a matter Of judgment. and
il must be conceded that the judgment
Of different appraisers Will vary 10
some extent. The chief rule regard
ing ordinary marketable property is
that full value is such a sum as
willing buyer will pay 70 a willing
seller, but this rule is subject 70 many
variations. If the assessor Will forget
FOR the moment that he is an assessor,
and. having knowledge Of the general
conditions Of value of the real estate
which is the subject Of investigation,
will ask himself, What is this piece
Of property worth? and will give his
honest judgment as TO the fair market
value, that will be, so far az he is
concerned, the full market value OF
that particular piece of property
ITO our mind a clearer direction
came from the president Of the Board
of Taxes and Assessments Of New York
City at the last State Tax Conference,
when he said in the course of an ad-
dress: Every one of you has been
obliged to assess property for which
there was no market. In the
City of New York. where litigation is
more common than where values are
lower, we have sometimes been obliged
to litigate as 70 the assessment of GER
tain classes of property that may per-
haps be said not to have a market
value. For example, the tank of gas
company by itself has only a scrap
value A corporation in New York
once contended that we ought TO assess
its gas holders at the scrap value of
the iron. Naturally, we said: no; we
should take their value, their full value,
which is to be measured if the holders
are in use by the sum il would cost TO
reproduce them, less depreciation for
age. We went 10 the Court Of Appeals
with that case, and our assessment was
upheld on the principle that the meas
ure of value for such property was the
cost of reproduction less depreciation