The sun., 1918-12-19
Speakers at Mayors Commit
tee Hearing. Tell of Plans
for New Law.
REALTY NOW BURDENED
Effort VIII Be Made to Shift
Part Of Load to Relieve
Real Estate.

indicate the Legislature will be asked
at its next session to pass a measure
providing for a personal property tax
In New York city to be levied some
what after the fashion OF the Federal
income tax.
Such a measure will have the sup
port OF Comptroller Craig, which Is as
sumed to mean the entire city admin
istration, and OF real estate interests
represented by the Real Estate Board.
incidentally it was brought out that by
this means 1t is hoped to bring about
lower rentals, put real estate on firm .
investment basis and to safeguard the
city's financial situation. !
1t was the belief OF every spokesman
that real estate is paying so great nm
amount OF taxes that itS value is being
jeopardized and that the credit Of New ,
York city. based on real estate values, !
is in danger. The Comptroller, Robert
l.. Bowling, representing the Real Es- ,
! tate Board; Albert G. Milbank Of the
( Advisory Council Of Real Estate In ,
! terests, Prof. Chandler OF Columbia
! University. Lawrence Tanner, repre- (
senting the Citizens Union; Mischl
Applebaum of the Humanitarian Cult
and Laurance Mcclure, president OF
the United States Realty and Improve |
ment Company. agreed that new
sources Of revenue must be found to |
relieve the burden on real estate.
Many Proposals Discussed.
/ Comptroller Craig discussed various
proposals for amending the tax law.
and suggested that all Of them be dis ,
carded in favor of the personal prop
erty tax to be levied at q rate of not
less than three-quarters Of one per
cent. He proposed that oil personal
property in values Of more than $4,000
be taxed. and that severe penalties be
inflicted for failure to make returns on
personal property holdings just as the
Federal Government inflicts penalties
for failure to return statements OF in
come.
III we have such a law" the Comp
troller said. people will be waiting
in line on tax day instead of waiting
in line as they now do to swear Off
taxes. would have such personal
Il
would make the tax payable beginning
January Is. We would then know
how ,.Iuch money we should have in
hand from personal property taxation
before the real estate tax was fixed.
II Il a scandal the way we write of
millions of personal property taxes
each year. to be carried forward and
added to the real estate tax the next
year."
The Comptroller expressed disap-
prevail OF the plan OF the Real Estate
Board to force a bill through the Leg
islature limiting the annual tax on
real estate to per cent. lie said to
do that would mean that the city
would have to repudiate its debts or
abolish the Police, Fire or Health
Department. He accused real estate
organizations generally of having
worked for the new subway system
which increased the tax rate sixteen
points for interest and amortization
and then calling for a limited tax rate.
He said that all other sources OF
revenue other than the personal prop
erty tax and income tax would not
make the difference OF one point in
the tax rate. and that the income tax
dpplltu W We" IOIh C4NJt udu
tons which are insurmountable. That
form of tax, he said. Is worked to the
limit by the United States, but per.
sonal property reduced in value to the
very lowest estimates that have been
made still would remain sufficient 10
provide a remarkably largo sum II
taxed.
Bowling Makes Reply.
In replying for the Real Estate
Board OF New York Robert f. Dowl-
ing said that the Legislature would
be asked to pass the per cent. tax
bill and that the Real Estate Board
would go back to Albany. year after
year, until It obtained such measure.
He also said they favored a personal
property tax OF one-quarter OF l per
cent,
Real estate owners are working for
their Janitors," Mr.. Bowling said. and
we believe that II personal property
will not pay one-quarter Of per cent.
toward the support OF New York city
1t can go elsewhere"
Mr.. Bowling drew the attention OF
the committee to largely increased real
estate taxation due to such plumbers as
the purchase of the proposed court
house site.
The only noted dlscord between real
estate representatives was the state
ment by Albert G. Mlbank that the
Advisory Council of real estate inter-
ests objects to personal property tax.
Mr.. Milbank declared his organization
in favor of reducing the tax on real
estate by establishing a ratio for II
and for other sources of revenue He
declared for a moderate income tax
and a business tax to reach non-resi-
dents who make their money here He
said co or 10 per cent ratio of the
total amount OF taxes to be raised
levied on real estate would produce the
same effect as a fixed tax rate. and
would leave the city free in time OF
emergency.
Prof. Chandler said a personal prop
erty tax had been a failure In every
State in the Union where II had been
tried. He also said that large ftnan-
cial interests In this city believe the
| tax rate is so high as to ieopardlze the
! clty's credit. The Citizens Union,
through Mr.. Tanner, declared that no
fixed tax rate or ratio in real estate
: is desirable, and that a proper tax on
. personal property Is unenforCible. They
favor an income tax OF about ! per
cent, "a habitation tax on rentals to
. reach non residents in hotels and en-