The Penn's Grove record., 1921-10-21
UNCONSTITUTIONAL EXEMP-
TI0N
Law Passed Which Makes New Dwell
ing Not Taxable

The tax assessors have a new law
to meet, passed by the last Legisla-
ture, which says that dwellings, erect
ed between October 20, 1920, and Oc-
tober /, 1922, shall be exempt from
taxation for five years. 1t was passed
to paCify agitators who declared there
was a shortage of houses in the north
J ern part of the State. Most of the rea-
son there was a shortage was because
men who got the high wages kicked
against paying rents commensurate
with the wages they got. Economists
estimate that rents should be one
fourth the wages and for a furnished
house with heat and light one-third
the wages.
There is always persons striving for
special privileges and to satisfy the
agitators who have votes legislators
occasionally pass laws they believe
should not be passed and which are
unconstitutional. 1t does not take a
lawyer to see that the law to exempt
any one from taxation is a special
privilege which should not be granted,
which is clearly unconstitutional when
the State Constitution is read. Ar
ticle VII, clause II reads as follows:
property shall be assessed for taxes
under general laws, and by uniform
rules, according to the true value"
1t does not take a lawyer nor a
legislator to understand that funda
mental law, and that special privileges,
clearly unconstitutional, was granted
by the law to exempt any property
from taxation.
The State Board of Taxation has
sent a letter to all local assessors on
the subject. The Board disclaims any
intention to formulate binding instruc-
tions and then discuss the law as fol-
lows
whether it is a good law or a bad
law, or whether it is in conflict with
the State Constitution, are questions
with which assessing officers have
nothing to do. 1t is a law until the
Legislature shall repeal it or until the
courts declare it unconstitutional. The
object of this law is not only stated
in its title, but it is set forth in de
tail in its preamble. In substance,
this object is declared to be to en-
courage the investment Of private
capital in the construction of dwelling
houses to meet a public emergency
caused by the cessation of building
during the war period, and the result
ing congestion in housing conditions.
To accomplish this purpose the Legis
lature has decreed that no taxes shall
be levied, assessed or collected for
period of five years, from October 1,
1920, on any Improvements to real
Htrbi ho hot
October l, 1920 and October /, 1922, |
for dwelling purposes.
'n'he exemption is not limited to
dwelling houses, but is extended to all |.
erected for dwelling
The law does not appear to
any particular kind of
building, but to have solely in mind .
a place of habitation or place where .
people may live. Thus it may be a
building of one room OF many rooms.
1t may be a single house, a double
house or an apartment house. 1t may
be building erected by the owner for
his own use, or it may be erected by
The owner for the use of other people.
If the improvement is intended partly
'or business and partly for dwelling
it would seem that that por-
ion of the improvement which is in
ended for dwelling purposes would be
entitled to the exemption, while that
part of the improvement intended for
business uses would be taxable.
Additions made to existing build
ngs for dwelling purposes during the
period fixed by the statute are entitled
o exemption. In that case, however,
he exemption must not be extended
o any part of the value of the exist
ny building and the assessment there
N must not be less than the assess
nent made as of October |, 1919, eX-
ept in case of damage through action
# the elements sufficient to warrant
reduction. For example, assume a
welling house assessed for $4,000 on
October /, 1919. After October /,
92O. four new rooms were added.
his addition would be exempted, but
he assessment could not be less than
10000. 1t might be more if the pre-
,ious assessment had been too low, or
he property had increased in value
Without regard to the addition of the
our rooms.
"Alterations, additions or repairs
which add to the value of the prop
,rty without increasing its capacity
or dwelling purposes are not within
he contemplation of the act.
an cases where the right to eX-
,mption may be doubtful, the doubt
should be resolved against the exemp-
ion and the taxpayer left to his rem
edy by appeal, but this doubt should
)e a substantial one Where the right
If exemption is clear it should be al
owed"
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