New-York tribune., 1921-02-27
Suburbs VIII Benefit Most
BY Exemption on Ne,U Homes
VIII Help unbuilt Sections, Says Joseph p. Day;
Z. J. Rickert and Edward A. MacDouga Queens
I Builders, Look for Building Boom From Measure

hS ANtich vi ShS bQaTQ vi rSS6lmaIG
and Apportionment on Friday in
passing favorably the measure ex-
empting dwellings, and apartments
from taxation will be followed by great
building activity this spring, especial
ly Ia suburban places, according TO
leading figures in the real estate field
Joseph P. Day was OF the opinion
that it will have wonderful effect in
undeveloped sections, and result in
big demand for such property. E. J.
Rickert, president of the Rickert-
Brown Realty Company, said that the
greatest benefit will come to Queens,
while Edward A. MacDougalt, presj-
dent OF the Greensboro Corporation, and
William NJ. Greve, of the Realty Asso-
clates, were high in their praise of the
measure, and said that it will result
IN resumption of construction on
large scale
''The action of the Board of Esti-
mate and Apportionment in partly ex-
cmpting from taxation for ten years
private dwellings and apartments
should do much TO stimulate the buy
ing of vacant land for new building
operations this spring and summer,n
caid Mr.. Day. 'tAccording to the new
law, stores may be installed on the
ground floor, though the upper part OF
the buildings must be used exclusively
for residential purposes.
There is vast amount of vacant
land in New York City which is ripe
for improvement. While the new law
does not relieve the situation in it's
entirety, nevertheless, it will be an i'm
portant factor in influencing not only
the speculative builder, but also the in
dividual, to start building. Another
factor which will make new eonstruc-
tion possible is the lowering of build
Ing material prices, which has been
going on steadily for some weeks past.
At the present time lumber prices are
almost at a pre-war level. Cement,
brick, builders hardware and many
other materials used in house con-
struction are on the downward trend,
and, in addition, labor is not only
easier, but more efficient.
81 Hook to see the new law have a
most beneficial effect on the vacant lot
market. Many investors who have pur-
chased land during the last year or
so. and those who purchase land now,
are in a splendid position to so ahead
End build their homes"
Mr.. Rickert Looks to Building Boom
MIR. Rickert, whose company has
completed 152 houses in the Borough
of Queens within the last year, said:
"An analysis Of the practical opera
tion of the tax exemption law shows
conclusively that the benefit from it
will be in proportion to decreasing
value Of the land on which the build
ings are erected, and will result in the
least benefit to the Borough of Man
haitian, much greater benefit to the
Boroughs of the Bronx and Brooklyn,
and the greatest of all to the Borough
of Queens.
"The reason for this is that the low
limit of exemption, $4,000 on one
family houses, $4,000 on two-family
houses, and $1,000 per room on apart
ment houses, with a maximum of $4,000
on each apartment, makes the percent
age of tax exemption the least where
the value of the land is the greatest.
For instance, If dwelling house, cost
ing say $4,000, is built in Manhattan
Oh land valued at $4,000 there is an
exemption of only $4,000, or 10 per
cent Of the total assessment, while if
In Queens a house assessed at $4,000
Is built on lot assessed at $1,000, the
exemption would still be $4,000 and
the percentage would be II per cent
or nearly eight times what it would
be in Manhattan.
Assessed valuations are now all
based on pre-warn costs, SO that house
only be assessed at $4,000, which would
be fully exempt from taxation, and the
actual exemption would, therefore, be
from IS to so per cent of the actual
value Of the house and land.
Percentage Low for Flats
"The same thing applies to apart
ment houses in Manhattan, for the lea
son that the high cost of fireproof
construction, together with the high
land values, makes the percentage of
exemption so low that 1t becomes al
most negligible, and few new apart
ment houses will be started in Manhat-
tan as result of tax exemptions, par
ticularly when the rent laws make the
income therefrom so doubtful.
THAT tax exemption will cause
tremendous home-buying movement IN
the Borough of Queens, cannot be
doubted, when the actual benefits of
tax exemption to home buyers are CT n
sidered. The 1921 tax rate is 2.85 per
cent per annum, or total Of 1914 per
cent for ten years, which with per
cent interest added amounts to 38 per
cent. This is the percentage of the
assessed valuation actually saved by
the home buyer on a tax exempt house,
provided, of course, that the assessed
valuation does not exceed $4,000 for
one-family house, $4,000 for a two
family house, or 81 900 a room for an
apartment house This brings down the
cost of q house built to-day under
economical conditions, nearly to the
cost of pre-war built house, and
when the repairs for ten years on an
old house are considered, there will
be an actual saving on new tax
exempt house at the end of ten years
"A great deal of feeling has been