The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-06
COUNCIL EXPLAINS /
LOCKWOOD TAX BILL
Says It Will Relieve Realty BY
Reaching Untouched /
Incomes. =

During the past week che general ~
come tax bill proposed by the Adviscr5
Council Of Real Estate interests was n
troduced at Albany by Senator Isccle'
wood. This measure. the Advisory Couns
ell declares, offers a far better sotuneA
for tho existing tax muddls tt,Au o4
Davsnport-Judson bills, which afe espo
before tho present Legislature
The Lockwood bill will b sfvsA =
hearing before the Joint xeetea8Hs
COMMITTEES next wednesday. Aooerd1na
to IN explanatory statement tssusA ~
tho Advisory Council. II differs from ms
Davenport-J udson proposals In thas y
frankly recognizes the ability thsory
of taxation, makes q distinct efrort 70
equalizs the tar burden by roanhin1 N
comes which are not now taxed and pro-
vides a sound and practicable methoo
for reducing the real estate tax 10
normal rate The councirs statsmsne
readsi
'The Lockwood bill creates . gsnsrs1
income tax, whereas the pavenport-Jud-
son bills provide for . personal income
tax. the extension Of the tax on ms.
camille and manufacturing corporations
to all business corporations and In sd-
dillon q tax Of one-haif per cent. on
tangible personality. the latter beins
without deduction for debt.
Three important provisions In ths
Lockwood bill would relieve real es-
tate First and most important 10 ths
provision for limiting the New York CITY
real estate tax to two-thirds OF the
amount to be raised by taxation. the
maximum rate to be per cent.
somewhat higher percentage is provided
for other cities Of the State, according
to size. Second. interest received from
real estate mortgages u exempted from
taxable income. this being equitable, as
the capital represented by the moro.
gage has been taxed at DE genersi real
estate rate. Also tho so-called Brun.
dage clause in most mortgages might
become operative and warrant the call
ing Of such mortgages II this exemption
il omitted. Third. the net rent from
real estate IL allowed a. q deduction
A reasonable allowance for property 90
cupied by the owner In also provided
for.
'1The tax levied by che bill 10 . pcr
cent. upon all taxable incomes OF In
dividuals and o like rate for the not
income Of corporations not now included
In Article IX.(a). The personal exemp-
tons are $1,000 for single psrson,
$500 for husband and wife and 500
for each child.
THE principal deductions permitted 60
both individuals and corporations are
business and professional expsnssS In
terest. taxes, losses, dividends and net
rents
Further relief TO real estate u pro-
vided by requiring that 90 per cent OF
tho state income tar shall be returned
10 the locality where collected. To pro-
vent a shortage in local revenue from,
the endorsement Of tho proportional Iimi-
tation for real property taxes, In add
ton to the amount received from the
income tax. each locality may lew an
additional tax upon all business incomes.
THE advisory council will be prepared
to urge the principles Of this DILL at tire
| hearing next Wednesday at Albany, re-
queetng either the enactment Of he
Lockwood bill or suitable amendment OF
the Davenport-Judson bills"