New-York tribune., 1919-04-17
Advance of S2OO,OOO,OOO
to $500, 100000 in City
Total for 1920 Is Pre-.
dicted by Tax Experts
Reflects High Earnings
Even Old Buildings Are To
BE Included in the Cen
eral Plan for an Increase

Tho general and sharp increase In
real estate rentals and sales during the
last few months is interpreted by cx-
ports as prcsaging nm increased as
scsscd valuation by the Department Of
Taxes and Assessments of from $780,
100000 to S300,00O,00O for 1920, and
giving tax base. including personal
property, of close to $9,O00,0OO,0OO.
The increase in valuation may be
looked upon by the owners and land
lords as q penalty for raising rents, but
the Department of Taxes and Assess
ments yesterday it was said the in
crease would be due to natural causes,
following seven or eight rather clean"
years in real estate experience.
"The buoyancy Of the real estate
market, due to better earnings, war
rants the prediction that the increase
in assessed valuation of ordinary real
estate will reach $200,OOO,OOO in the
greater city" said John ]. Halleran,
who served as Tax Commissioner on
both the Gaynor and Mitchell boards.
Slack in Building Taken Up
Until last year it looked as if New
y ork City was about 20 per cent over
built" he continued. "Owners were
losing money every year. With the
shutdown for the last four years in
building, due to the high cost of labor
and building materials, the expected
was taken up, so to-day real estate is
very active, owners and landlords are
receiving increased rentals, and it is
speaking within bounds to say that
the city is underbult. This will re.
suit in building up the undeveloped d
sections of Brooklyn, Queens and The
Bronx
"While l don't see just where it is
coming from, still it looks as if the in
crease in assessed valuations for next
year would reach at least 100000 900
NAL times, in view of the fact that the
city increases in population about
100000 year. The high cost of build
ing construction tends to depress
rather than increase the market value
Of undeveloped lots, but as soon as the
cost of materials and labor lets dowr
little I look to see great activity in
building all over the outlying sections
especially where the new subway lines
have reached"
Increased Rentals Reported
The Tax Commissioners a few days
ago had all the deputy commissioners
in conference, and the deputies all re-
ported increased rentals. AS result
it is understood assessed land values
will be increased where there is proof
afforded by recent sales, that the raise
is warranted, and also that the depu
ties will increase assessments or
buildings, on the ground that they are
earning handsomely and that they
cannot be replaced for anything like
the present valuations.
This is where the owners and land
lords are likely to protest, as it is ar
unwritten law in the tax office tha
the assessed valuation of an old build
ing cannot be raised. Probably the
answer of the assessors will be tha
the land assessment cannot we'll be
raised owing to the cost of new con
struction, but that on account Of tht
rentals the entire property is worth
more, and that if the increased value
cannot be reflected in the land i
should so on the building.
Nineteen hundred and eleven was
the last "big year" of increase il
realty valuations. The Gaynor boarc
increased assessed valuations for 1911
in the round sum of $500, 100000. Thi.
was practicable because valuation.
were on basis of about 60 or Il
per cent, and Mayor Gaynor directed
the board to assess realty according t(
law--at it's true market value. Since
then the annual increases have run al
the way from $40,000,000 to 100000.
600 year for ordinary real estate.