The evening world., 1920-08-30
High Tax Valuations to Stay
Long After End of
Profiteering Era.
TENANTS URGE CUTS
Return to Normal Housing
Conditions Expected in
Three or Four Years.

held will become indirectly the ar
biters of rental values throughout the
city.
Instead of the usual crowd of land
lords cIamoring for reduction of as
sessed values fiat dwellers whose
interest in the tax office has been
lacking under ordinary conditions.
VIII be the ones to urge reductions in
values, on the basis of which it is
proposed to fix rentals.
The records of the Tax Department
showing the ebb and flow of real es-
tate values indicate that there Is lit
tie Foundation for the fears exnressed
that landlords will encourage bigb
valuations so they may collect higher
rentals.
The gross allowance for income and
upkeep Of tenement property. from
cold water" to steam-beated ard
elevator apartments, probably will be
set somewhere between 16 and ~
per cent. As the tax rate in Nanbat-
tan is $2.4S per 500, a higher varua-
lion would appear to be OF beheAt n
'ne owner This would be true il the
ABNORMAL housing situation were to
continue definitely. but it is believed
mat tnree or four years of building
'ctlVity, to encourage which measure
VIII be presented at the snecio1 CO.
sion Of the Legislature Sept. 20. will
orlng housing back to more nearly
normal
me return Of housing to normal
viii leave many owners u,bo ~.
been boosting rents to nav toxos -,
me peak Value long after rent nrof-
Iteerlng has become a thing of the
past.
Assessed values move downward
more slowly than they move upward "
President Jacob Cantor of the Roord
VI IaNes and Assessments said. "rhe
assessed values seldom reach the
peak OF high prices and never fall to
the low record mark. Real estate
sells more slowly than stocks and
bonds. The assessed values are not
record Of the real estate market, but
estimates by experts of the selling
value Of property on which taxes are
Collectible."
The deputy assessors are men of
many years service in the denart-
ment, many of them having a quar-
ter of a century Of service to their
records. They approach the task Of
liking values conservatively, so that
they can stand the acid test of court
proceedings. This year, If the Dow
ing bill becomes a law, some owners
may let their greed for immediate
profits mold them back from seeking
the reductions asked for each year,
but their tenants probably will dis
play considerable activity after the
TAX books are opened oct. /.
Although there is boun1No be some
variation in appOrtionment Of rents
in any building, due to desirahility
of the various apartments, the num-
ber of rooms occupied by any tenant
will be a pretty close guide to the
amount that should be paid in rental,
based on the assessed value plus 20
per cent. This valuation and the al.
lowance for operation cannot be made
arbitrarily, but will be presumed by
law to be reasonable unless definite
nroof to the contrary is presented.
Records of the Mayors Committee
on Rent Prohteoring show an APP
parent discrepancy in rentals and taN
valuations, as measured by the pro
nosed rent law The assessed valu'
atoms given in the following case,
we're fixed last fall, and are supposed
10 have taken into consideration thu
increased rentals demanded by land
lords Yet the rentals now demanded
are out Of all proportion to the as
sessed valuations supposed to reflec
me rental incomes Of last fall.
Tenant at No. 354 Ocean Avenue
Brooklyn, reports to Mayors Com
nuttee that landlord demands 1925 To-
apartment renting for 500 Rate o
increase, % per cent. Assessed valu
alton. $4,000. Under Bowling bill
landlord would be entitled to gros.
income of about $32,600. If new in.
come is larger than this, it would bt
presumed rents were too high OF
owner was paying too little for taxes
If assessed Saluation is increased il
proportion to rental, 1921 taXabi,
value would be $2l2,500.
Tenant at No. 6S21 Fourth Avenue
brooklyn, reports to Mayors Commit
tee that landlord demands SIS FOL
apartment renting for S45. Rate o
increase &C 2-3 per cent. AssesseC
yaue $4,000 Under Bowling bill
landlord would he entitled to gros,
income OF about $2,6SS. II total new
rentals demanded exceed this amour
II would be presumed rents were to-
high or owner paying too little 70
taxes. IL assessed valuation is in
creased in proportion to rental, 1872
taxable value would be $4,000
Tenant at No. 1247 East att
Street reports to Mayors Committe
that landlord, r. s. Jaffe demand
S65 for apartment renting for $4j
rate OF increase As per cent AS
sessed valuation, $4,000. Unde
bowling bill landlord would be en-
tilted 10 total rental OF S2T52
YEARLY total demanded exceeds thi
amount, landlord would be presume
10 be charging too much rent or pay
ing too little for taxes II assessc
value N increased In proportion {
rental, lS2l taxable value would b
tA7op.
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