New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-05
Tax l.
Legal, Miller
Informs Craig.
Governor and Attorney Cen
cral Demonstrate Fulfil
~ Of Invalidiiv Charge
M a d c by Comptroller
No Extraordinary Session
Points Out That Admins
ration in City Could
Have Made Gut in Rate


T.. Miller, on the strength of an opinion
prepared by Attorney General Charles
y. Newton, to- night sent a letter to
Comptroller Charles l.. Craig of New
York City in which he said that the
Comptroller was in error in expressing
the belief that the direct state tax
provisions were invalid, because they
proposed to raise $1,225.0o0 to meet
six months interest charges on the
proposed soldier bonus bond issue
The Governor declared that there
would be no need OF calling an extraor-
binary session of the Legislature to
amend the provisions of the 21-'22
direct tax schedule. The decision OF
the Court of Appeals in holding the
soldier bonus act unconstitutional
caused the Comptroller to question
the validity os the direct tax schedule.
contending that the courts action ma de
an extraordinary session of the Lcgi8-
latnre a necessity.
Governor Miller called the attention
81 the Comptroller to the fact that the
direct tax rate now viii be only .5043
mills, as com pared With 9.6Q5 mills last
year. making a total reduction of s12,-
$685. 900. He added that if those who
head the present New York City admin
istration had made comparable reduc-
lions the burden on real estate and the
serious tax problems now facing the
city would not exist.
Economies Will Help
/ The Governor declared that it will
only be necessary to impose a direct
state tax of one mill and half for the
support of common schools and teachers
salaries because it is possible to climi-
nate the levy planned to meet the an
nual debt service. This and the Sill
475.000 which was to have been raised
through direct taxes for debt service
will be provided through the general
fund.
"rn the City of New York the Gov
ornor's letter read, "the tax burden has
been increased at time when eco
monte conditions made substantial de-
creases essential to the public welfare,
with the result that the reduction in
state taxes, substantial as it is, will
be much more than Offset by increased
local taxation"
Similar criticism is aimed at other
local officials in the state. Governor
Miller's letter follows:
81 beg to acknowledge your letter Of
September %, in which you suggest
the calling Of an extraordinary session
Of tho Legislature to correct alleged
illegalities in tho imposition of the
state tau provided by Chapter 396 of
the Laws of 1921.
"Thc incloscd opinion Of the Attor-
rcy General makes it plain that you
are in error by asserting illegalitv be
cause of tho inclusion in single item
of the taN for the state debt service.
1t is equally plain, however, that the
item Of .7l27 mill to produce LILO
$685. for debt service does include
0157 mill to raise 81 .225,000. or six
months interest on the $f5,000,0o0 OF
soldiers and sailors bonus bones
which the Court Of Appeals has decided
cannot legally be issued, but the opln-
ion Of the Attorney General demon
stratcs that it is not necessary to con-
vene the Legislature as you suggest.
Will Use General Fund
"Thc effect Of tho decision OF the
Court Of Appeals is to render the entire
item of .l727 mill for debt service
invalid and void 1t therefore be-
comes the duty of the State Conptrol
lcr, in certifying the state tax, and
OF the legislative bodies OF the several
counties in lcvyiDg the same, to omit
tho void item for debt service, and the
state COmptrOllcr VIII issue CeltIhtd'e>
certifying the amount of tax for state
purposes that can validity be levied un-
der the law as it now exists, thus en-
tircly eliminating the void item
"The result viii be that Sll,473,
! 359G7 for debt service will have to be
met from the general fund precisely as
it would be the duty Of the State Comp
trolcr under the constitution to make
the necessary payments from shat fund
even ii no appropriation had been made
therefor; and there will be PRACTICAL.
no tax except the mill and onc-hall
tax imposed for the support of the
common schools and teachers salaries
Fortunately the treasury is in con
diton to meet the payments necessar,
to be made this fiscal year for deb
service, and the taxpaye may thus
once, and st time of the creates
need, get the benefit of the economic!
which have been inaugurated in thu
public service Of the state. The re
suit will be a reduction of the ia,
rate from o.s95 mills last year t,
1.5043 mills this year and total re
duction in the amount of direct state
taxes OF S12,666, 1SO.25 as compared
with last year.
>.Not hl,- ;u Now crl''