New-York tribune., 1918-12-23
Realty Men Oppose
Controllers Plan to
aise Tax Rate
Want 2 Per Cent, or Lower,
Limit Set; Point to Per-
sonalty as Revenue Source;
Need of Compromise Felt

Unless there Is compromise on
certain ful damentals there probably
will be no Legislation at Albany next
year that will considerably change the
tax law with reference tc the assess
ment of personal property.
Controller Craig, at the hearing be-
fore the Mayors Committee on Taxa
tion last week, went on record as de-
string listing system for each taxable
person, with the return to the local as
sessing board made under oath and
with drastic penalties for failure to
make such return. He said he was
opposed to q state income tax. He
Thought the rate on personal property
should be about three quarters of /
per cent.
Robert L. Dowling, speaking for the
real estate men, said he did not object
to q state income tax. and he argued
for a low rate to be imposed upon per
sonal property.
Trouble is anticipated when a new
personal tax law encounters the Sena-
tors and Assemblymen from upstate.
They have already indicated the would
oppose personal tax law which would
reach livestock and farm machinery,
having defeated measures containing
this provision whenever introduced.
Glaring Defect Discovered
Three or four years ago Ohio set out
vigorously to assess and tax personal
property by the use of the so-called
listing system. Persons liable received
a long blpnk or questlonnaire, and
such persons were supposed to make
heturns. Some faithfully made the re-
turn and some did not.
After trying the system for two or
three years two amendments to the
constitution were passed last year.
One struck out the provision that re-
quircd all property to be taxed alike.
and the legislature now is empowered d
to raise revenue in such manner as it
shall deem proper and to classify the
mont authorizes the taxation Of mort
cages at separate rates, or their ex-
emption. 1t was submitted by legisla-
tive resolution and designated on the
ballot "to provide against the double
taxatioN of real estate" This was car
ried by a vote of 47s,42o to 371.l76
One glaring defect uncovered in the
operation of the Ohio listing system
was that large holders Of personal
property would leave the State of
Ohio, register at the Hotel Astor or
the Waldorf Astoria in this city and
write on the hotel stationery to the
residing in New York City and being
a non resident, am not taxable"
Another Plan of Dodging
They did not take the trouble to
write that they were non-residents of
Ohio only for the day and for the pur-
pose of tax-dodging. Others who were
cited to appear to make an accounting,
or to show why they should not be fined
for n-compliance with the listing
law, would take trip to Pittsburgh or
Detroit and ask the taxing officials to
postpone the hearing until their re-
turn.
The Legislative Committee of the
Real Estate Board, commenting on the
statements made by Controller Craig
at the hearing before the Mayors Com
mittee on Taxation on Thursday, in q
statement issued yesterday says:
"rhe statement made by the con-
troller that the passage of a bill limit
ing the tax on real estate to per cent
for all purposes would mean the repu-
diation of the city debt or the aboli-
ton of the Police and Fire depart
ments is not borne out by the facts.
There is in the City of New York
available for taxation at least SIC, o,0O0,-
100000 of personally made up of aver
age bank balances, stocks of merchan-
disc, machinery, tools, household fur
niture, automobiles, jewelry, works Of
art and other forms of personal prop
erty. This can readily be gotten at
and tax Of one-fourth Of l per cent
collected.
Controller Opposes Low Limit
"a man with S1,0O0.OO0 bank bal
ance or man with a stock of mer-
chandise valued at s10O0,00O cannot
and surely will not object to $2,50O n
year for police and fire protection and
the other benefits which state govern
ment affords. If such a man leaves
the city to do business elsewhere his
loss would not be regretted"
The one thing that seems to be GER
tain as result of the hearings before
the Mayors Committee on Taxation
is that the real estate men will try to
put through a bill similar to that in
troduced in the last session, limiting
the tax rate on realty to per cent, or
perhaps IA per cent The controller
is opposed to any such Limitation of
the real estate tax rate When the
differing views come before a legisla-
tive committee the chances are that if
the city does not know exactly what il
wants, it will get nothing
All Graves of L. $. Captives