The New York herald., 1920-01-11
'B|LLs PREPARED
TO HELP REALTY
Large Amount Of Legislation in Pros
pect, Including Mortgage Ex-
emption to $4,000.
By JOHN L. PARISH.

While no definite and complete prog
Irapme OF legislation affecting real estate
and taxation has been prepared by any
single interest the session of the Legis-
lature just begun at Albany will very
likely be called upon to consider as full q
budget OF bills on these subjects as ever.
II is the committees on taxation and re-
ltrenchment in the Senate and the Assem-
bly, which will have charge Of most of the
bills, and Senator Davenport, who enters
upon the second half of his term, and As
semblyman Judson, who has been re-elect-
cd. will doubtless again head these COM
mttees, respectively. Neither has outlined
a personal programme but both doubtless
expect to have plenty Of work cut out
for them.
4 Foremost in prospect among the projects
of legislation is the reconstruction of the
State government recommended by the
lGovernor's Reconstruction Commission
Although not tax question in the strict
sense. its main object Is retrenchment in
the cost OF State admnistra ION and il will
who are concerned with real estate AMI
taxation.
4 Incrc lsed Taxation Not Needed.
Controller Travis's forecasts issued
monthly through the year show no neeS
OF increased taxation for State purposes.
but 1t would be strange II he did not rec
Commend some amendments of the tax
laws, chiefly. to clear up some obscurities
and to facilitate administration OF the tax
laws.
4 Non-official interests. and particularly
Is ~ 80 ], 10, all.
however, be earnest petitioners to the Leg
Il islature for amendments of the tax laws
OF much interest and Importance. For
real estate. always the great burden
bearer in matters OF taxation, will neyer
cease struggling for relief until substantial
Justice is established for il by law.
! They will demand The amendment OF ~
income tax law so as to permit indivi6rNl
investments in mortgages up TO $4,000 IN
ianount free OF taxation OF the income.
;, This Will be asked for in order to induce
! Lending In aid of new construction, chiefly
OF houses and industrial plants need or
\ which is holding back the orderly develop
nent of every city in the State, and has
created a competition for living and work
ing space which has resulted in the boost.
ing OF rents out OF all economic reason.
Il Limitation OF Power.
j For their further relief efforts will BE-
made 10 limit the powers of the munici-
palities 10 crush real property interests
1 by taxation. At least one of the bills
having this object in view will be bill
TO limit the power Of taxation Of real
estate to sixty per cent or at most sixty
five per cent Of the total annual tax lovy-.
! Whether this bill will be "a Statewide bill,
applicable TO all municipalities. or only
New York city bill. has not yet been de-
\ termined
Last years Legislature enacted a bill e.
limit taxation of real property to a rate
\ not more than 2.25 per cent but IL was
made TO apply only 70 New York city, and
so was subject to Mayor Hylan's power or
veto. which he promptly exercised.
| There is no doubt about the ability Of
the city 10 raise forty per cent of all It's
required revenue by other methods Of tax
alton than the direct levy on real estat,,
and the promoters of the intended law
intend that II should be made to do so.
Real estate Is biirdened now with seven
/ terests are not to be blamed II they pro-
test continuously against further oxten-
sion Of these burdens
Exemptine Rents.
/ There Is some talk also Of an effort 20
have the net income from rents exempted
from taxation under the Income Tax law,
the reason for this being that such taxa"
ton is clearly double taxation and so In
defensible In common Justice and fair
]
income Is taxed all tho way from thirtS
per cent 20 practical confiscation (as wit
4 ness the long lists allowed TO go TO sale
for taxes), and Il 10 not only just and fair
TO grant this further exemption but II
would so improve the standing OF real
estate as to profit the taxing powers
th 'riselves moro than enough TO offset tbs
loss Of the income tax.
| N is so easy for the taxing ps---y -
exceed the economic limits OF taxation and
SO do the communities moro harm than
20 ,d. This limit Is reached. according 80
Adam Smith, when tax "may obstrrice
the industry OF the people ana discourage
them from applying 20 Investing in) Ger.
tain branches OF business which might
give maintenance and employment 20
great mutitudes."
Such branch OF business Is the great
building industry. and there Is not tho
shadow OF a doubt but that u Is being
seriously obstructed by operation OF the
1 H.. l..