New-York tribune., 1919-11-19
Changes in Tax
Law Puzzle to.
Many Citizens
Failure to Complain of Err
rors Before November 20
Promises TO Leave High
Assessments Stand i N 9
Stocks and Bonds Exempt
Personal Levy Is Virtually
Limited to Furniture,
Jewelry, Clothing, Etc.

Because of failure of MANY persons
to receive notices of the amount of
their personal property tag assessment
and unfamiliarity with the changes
made in the personal property tax law
by the new state income tax law, many
persons, it was said yesterday. are
allowing themselves to become subject
TO personal property tax assessment
greatly in excess of the amount for
which they properly are assessable.
1t has been the custom each year for
the commissioners of the Board of
Taxes and Assessments to send out
notices of the amount of the assess
ments, although not required to do so
by law. This year many persons
whose names appear upon the tax
DOCKS have not yet received any no.
tice, although, in answer to inquiries
made at the Offices of the Board of
Iaxes and Assessments in Manhattan
tne statement was made that such no.
tlces had been sent out this year to all
persons whose names appeared upon
the assessment roll. Assessment rolls
were open for inspection on October
l, and will remain open for inspection
until November 20, which is the last
day upon which applications may be
made to reduce assessments of per-
sonal property.
Property Owned October 1 Governs
resident of the city is subject to
personal taxation in the borough in
winch ne or she resides upon the basis
OF the personal property owned on
October oft hnr jrdjyiN,,all.y or q, =,
partner. Non-residents are subject to
personal property taxation upon tangi-
b-e personal property within the city
such as household furniture and
leweiry, and those doing business here
are taxable upon the capital invested
in the business within this state
In liking the amount of the assess
ment the tax commissioners apparently
have not attempted to learn how each
taxpayer is affected by the exemption
provided in the new law but proceeded
as in other years, leaving it to each
taxpayer TO swear off as much of his
assessment as possible. If no applica-
ton for reduction is made before No
vember 20 the tentative assessment be
comes final and after November 80 il
the one assessed desires to correct q
personal assessment he must wait until
his outstanding bill reaches the Office
OF the corporation coun sci, who ulti-
mately, unGer the custom followed for
years, "lil bring an action in the
Supreme Court, and summon the
debtor. Then, if wrongly assessed. a
person may deal with the Law Depart
ment, and If he can convince the assist
! ant corporation counsel the assessment
was erroneous. 1t may be reduced, or
Cancelled by formal motion in court.
Stocks and Bonds EXEMPTED
The greatest single change in the
personal property tax law is contained
in Section 352 of the state income tax
law, reading, in part, as follows:
money on hand on de-
post or at interest, bonds, notes
and chooses in action and shares of
stock IN corporations other than
banks and banking associations,
owned by any individual
rived, shall not be included
in the valuation of the personal
property included in the assessment
rolls of the several tax districts,
villages, school districts and special
tax districts of the state"
Under this provision assessment of
personal property is practically limited
TO household furniture, jewelry,
clothing, etc, upon which there is an
chandise, animals, vehicles and, in
addition, accounts and bills receivable
and investments from which no income
Is received. Automobiles upon which
the state license is paid, money on
deposit in savings banks and shares OF
stock IN banking institutions arc ex-
empted from personal property taxa
tion under other provisions of law.
Al bank accounts, money due upon
open accounts, notes, etc, securities
and investments, from which income
is derived are exempt from personal
property taxation. This is the first
year that this change in the law has
been IN operation.
Income Tax Exemptions
further provision of the income
tax law provides that corporations
which are subject 20 taxation upon
their income shall not be assessed or
their personal property or capital
stock. Whether this applies to for
elgn corporations has not VET heen
finally determined. TLe only corpora-
tons whose income is not subject to
the income tax are holding corpora
,lons, puollc service. insurance and
banking corporations and corporations
"holiy engaged III the purchase, sale
ana holding OF real estate for them
selves. TIE names of many exemnt
corporations appear upon the tax
books and will remain there unless
steps are taken by the corporations
TO nave the assessment stricken from
the roll.
The assessment books are kept. and
he tax commissioners meet for the
purpose of examining applications for
feducuons OF assessments in the
Various boroughs of the city, as fol-
lows: Manhattan, ninth floor Munjci.
pal Building; Brooklyn, sos Fulton
Street; Bronx, fremont and Arthur
avenues; Richmond. Borough Hall St.
George; and Queens. Municipal Build
ing, Long Island City.