The New York herald., 1921-12-04
FEARS JOKER IN
TAX EXEMPTION
Home Buyer Looks for Raise i'm
Assessments to Wipe Out
Intended Benefits. r

growing tendency on the part of builders
ana owners of new dwellings. flats and
apartment houses to become suspicious
OF the much talked Of advantages of
tax exemption FOR ten wears IN tb,s
city. 1t has been predicted that tho
state law granting exemption and
adopted here In New York CITY WIFI, be
contested and found unconstitutional. 1t
is not in that direction. however. that
the suspicion referred to above lies II
rests ON the fact that the assessors or
the Department of~Taxes have tho right
to assess all residential properties on
the basis Of full production costs. That
Is the fuel supply which many believe
conceais the well known Ethiopian.
1t may be that this suspicion that
tnere Is an immense joker concealed In
the tax exemption deck is unfounded SO
iar as the present big apartment houses
now oelns built or those that have been
puiit since the passage Of the local ordi-
nance last February are concerned It
cannot, however. be removed from the
minds OF buyers Of small single family
houses who paid the excessive prices
charxed during the post-armistice period
s!4lael920 These houses under the
o141nence 81 are exempt up to and incluu-
ing 5000 Of assessed valuation.
When the ordinance was passed. with
the AID OF Borough President Henry
Curran, most builders and owners be-
heveo that by Its means they would be
aple TO recoup some of the excessive
costs which were involved in building or
Duyins In that unfortunate period. When
ney received the tax exemption blanks.
which must he filled out and sworn to
oeIore tney were returned to the Depart
ment OF Taxes and Assessments on Mo-
vemper 10. they were surprised to learn
that they were expected to swear to the
actual cost OF the houses, and IL the
owners did not know the cost they were
asked to give the price which they oaid
for them.
Those who built their own houses un-
doubtedly found It comparatively easy
TO state what the actual cost of produc-
ton was. Those who bought their homes
from builders or developers did not find
II so easy. 1t was easy for them os
course to state what the excessive price
was which they paid for the house.
Now let US see how the situation works
out in the writer's case.
he purchased n single family brick
house on 20 foot lot in the Borough OF
Queens. for which he paid $4,000. That
was In January. 1920. The following
November he received a bill for taxes
and was informed that the property had
been assessed for $4,000. of which ST.
900 was for the land. That leaves an
assessed valuation for the building of
$4,000. Although the house was not
completed until the fall Of 1920. the
writer was obliged to pay tho 1920
taxes because the property had been
entered on the tax rolls In November
of that year.
The writer Is a member Of a civic
association which includes about sixty
other men and women who bought
houses In the same development. He
ana other members Of this association
nave tried to ascertain tho actual costs
OF production OF the houses. The de-
velopers Of the section have declined 70
assist the buyers by furnishing this in
formation. Inquiries In the Tax Com
mission offices furnished little satisfao-
tion. In fact they caused aggravatfon
because hints were thrown out to the
effect that II the members OF the civic
association would place themselves on
record as favoring the candidacy Of a
certain we'll known ONCE holder In
Queens they might be favored with
some advice or assistance.
Most OF the members of this associa-
ton finally acted on legal advice and
put down as cost of production the esti-
mated cost filed with the Building De-
partment Of Queens. That was $4,000.
Now the writer and these other civic
association members have been informed
that this procedure will not TO-" to
borrow a phrase from the vernacuiar.
We have been told that the assessors
VIII take into consideration that the
houses cost the buyers anywhere from
$4,000 to $11,50o. according to the time
In which they purchased (some bought
from plans, and consequently much
cheaper). We are told that the as
SCISSORS. who notify us that they have
the right to assess property for its full
valuation or production cost. will un-
doubtedly fix the assessment value Of
these houses next year at something
between $4,000. the present assessed
valuation. and $4,000.
1t Is easy to see by this process that
the men and women who paid high
prices to keep n roof over their heads
In 1e19-1920 may see the assessments on
those houses jumped nearly 100 per
cent. In other words, IL these expected
actions on the part Of the Tax Depart
ment eventuate the owners will be pay
ing just about the same tax on their
houses as they would have paid had
there been no passage of the local ex-
emption ordinance.
Everywhere there was disposition to
believe that the city had been quite fair
in dealing with small single family dwell
ings when the 1920 assessments were
made. 1t Is the analysis OF the exemp-
ton blank requirements and the strange
silence on the part Of the tax depart
ments that lead most of us to believe
that there surely Is a "nigger. In the
woodpile." and that the exemption will
in reality be a practical joke. The the
ory of the situation certainly affords
some basis for these suspicious.
In closing let me ask this question
The assessors are contemplating rails
ing the assessed valuation of houses
such as the writer and his associates
bought are they also going to raise the
assessments of old houses in the same
neighborhood which were formerly as
sessed at about $1,000 but which have
been sold for $4,000 and $4,000?
z. s. q.