Perth Amboy evening news., 1923-12-22
Boosting RatabIeS

The high prices being paid for real estate, especially in the
business section of the city, has attracted much attention. 1t is no
wonder the tax assessors are becoming interested. II property
owners are going to make such fabulous profits in trading in real
estate, it is only fair that the city should profit by the transaction.
1t stands to reason that the purchasers of these pieces of property
must consider the price paid somewhere near the true value or they
would not give the amount they do.
This skyrocketing of real estate prices in the business section
of the city is not doing Perth Amboy any good. Naturally, a pur-
chaser wants to get a fair return on his Investment and so rents
are increased correspondingy. The result is that merchants lind
it impossible to pay what is asked and progress IS retarded. 1t Is
noticed that when a large store is vacated it is usually cut up into
a lot of little stores so as to increase the income. This IS not help
full to the city; it hurts business.
However, this constant speculation in real estate seems to be
a mania in Perth Amboy, and it is going to continue as long as
persons can be found to pay the increased price. Each man who
buys a piece of property adds several hundred, or a thousand or
two dollars to the price he pays for it and sells it to someone else.
The new purchaser does the same thing, and so it goes until the
price of the property is run up so high that it is thought no one will
ever pay more. Yet, sooner or later, another purchaser comes
along. In the meantime, the merchant who happens to occupy the
building suffers unless he has a long lease, and even then he has
constantly hanging over him the choice of moving when his lease
expires, and just when he had built up a good business where he is,
or remaining and paying an enormous increase in rent.
Whatever can be done to stabilize the price of real estate in
the business section of the city, therefore, will help the average
business man, and there is reason to believe that the tax assessors
can do a great deal by giving the spectators to understand that
they will have. to pay taxes to conform with the values they are
putting ON properties. AT the same time, reasonable consideration
ought to be given the merchant who owns his own building and is
located permanently as a fixed asset to the business community.
There is no speculation in his investment, and as he has no inten-
ton of selling, the abnormal prices run up by spectators on
n~eighboring buildings mean nothing to him, and he ought not to
be punished because of his enterprise.
And speculative business property is not the only thing to receive
the attention of the assessors in bringing the citys ratableS up to
what they ought to be. There are many vacant lots in different
parts OF the city that have not been changed as far as assessments
60 for many years, yet they have constantly increased in real
value, so that they are assessed today at hardly a third of their true
value. This land ought to be taxed more in proportion to its value.
If this were done it would soon be developed, thereby increasing
the housing facilities of the city.
One thing is certain, it is unfair every time it is desired to
limp valuations in this city, to pile it on the industries. Some Of
the plants located here are now assessed at almost their true value.
1t is all well enough to say that the law requires that property be
taxed at its true value, but until there is a decided increase else
where there is no ue picking on the industries. A dwelling house
or a store can always be used, but a factory building is usually
built for the manufacture of a certain article and if that operation
ceases the building is not worth much for anything else. Besides,
it must be realized that industries are the life of this community.
Perth Amboy is an industrial city, 1t must have industry to
propsper. When competition between municipalities is SO keen in
getting new industries, it is a shortsighted policy for a city to keep
lacking up the ratables on the industries every time more money is
needed to run the city.
Industry along with the legitimate business man who desires
a permanent location ought to be encouraged. The tax assessors
can do much for the city in this regard, as well as add to the cty's
income, by increasing assessments where prices that are asked and
are being paid throughout the city show that inequalities exist.
\ There is no question about the assessors being able to boost
[ ratables here $2,0 900 and doing no one an injustice provided the
Nncreases are put in the right places.