New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-23
More Smiles Filter Be
fore Increment Tax
Proposition.
NO BALM SUGGESTED
FOR UNLUCKY OWNERS
c. F. Noyes and H. A. Sherman
Present Forceful Arguments
Against Plan.

The Committee on Taxation appoint
cd by Mayor Mitchell nearly two years
ago recently recommended tax on In
crements Of land values counting the
increment not from present valuation.
but from the highest valuation be
tween 1910 and 1914. when real estate
values were higher than they are now,
provided the property has not been
sold in The mean time.
Leading real estate agents and broh-
e-s who have beer asked for their
views on this vital suolc Get say 'hcy
are opposed 20 such p taN. Charles +
Moves. head OF the Charles +. Moves
Company. says an increment tax Is
.mprscticable, unjust and insdvissble.
Mr.. Moves adds:
There are many reasons why the
proposed increment tax should be op-
posed. II is tax which cannot be
levied with justice, and u would be
impractical Il adopted. While at first
blush IL might be considered fair tax
in theory, a careful snslysis will de-
velop msny reasons why the idea must
Re abandoned. For instance. II sale
shows property enhancement the fortu-
nate owner must pay the increment
tax. Admit this IS reasonable, but
then consider other overassessed prop
critics which have been sold for less
than the tax value. II Is not proposed
IN the latter case that the city should
refund 70 the owner who has yearly
been paying more than his share OF
taxes.
NO one believes in the future Of
New York City real estate more than |
do, vet all Of Us in the real estate
business know OF many sales now be
ing made az much less than the as
sessed valuation. ! recently sold a
property on Wall Street for 100000
which was assessed st $4,000 for the
year 1916. This property was and is
as valuable as the adjoining property
practically identical in size-which
sold ten years ago for s250,0o0. This
week J hav. sold a Broadway property
for sl5O.000 which is now assessed for
1924 900. reduced from $4,000, which
was the assessment in 1910. This prop
erty Is more than twice the size Of an
other parcel in the same vicinity which
] sold eight years ago for exactly the
same price. ! am now negotiating the
sale Of a former 100000 pronerty for
$4,000. The city assessment IS S92, 900
and there is an existing institution
loan Of S65 600
"These are only few OF the many
examples which | could give. quote
them because they are concrete. bona
f6e examples which burn like fire, and
in my judgment refute the statement
put forth by many that all real estate
is continuing 10 pile up an increment.
would Ike 10 have The Tribune, or
some Of It's readers familiar with this
increment tax scheme, point out 70 me
how these gentlemen who take from
some are going TO refund to those who
discover that instead Of possessing
ground showing a yearly increment
there has been a gradual and steady
decrease in value without proper ad-
iustment OF the tax assessment. Where
ore gains another loses.
at should also be borne In mind that
property values are often decreased
because Of changes made By the city
New bridges will change neighbor-
hoods. and our new subway system
when completed and In operation will
undoubtedly cause big cut in values
al present high points although 1t
will tremendously help outlying sec
tions. and Broadway from City Hall TO
Saith 81"
In regard 10 the proposition TO tax
realty increments, Herbert A. Sherman
says:
Il think il would be mistake to
tax the increments Of land values as
proposed by the Mayors committee.
II would mean an additional discour-
agement to real estate which is already
overburdened. Besides this. 1t Is well
known that tax valuations at present
are higher in almost every case than
the real value Of property as shown
by the results Of the sales in the past
two years. An instance in point is the
sale Of 70 Park av. in partition at
$4,000 last month, the assessment be
ing $4,000. ,.L,
"This shows how unreliable tax val
uations are and indicates how unre-
liable estimates OF the Increment IN
land values would be. The only cure,
for present evils seems to be economy