New Britain herald., 1930-12-02
Revision Committee De- cides to Refer Project to Common C0uncil-Sums of S25 or Less May Be Paid. On Single Bill - Annual Cost S5,000.


 Visibility of changing the method pf tax payments to two installments Instead of one, said it met with his Approval. T believe all questions Of this sort, involving important changes in the procedure of the government, should be submitted 10 the voters for their decision," he said. Then if they want it they may say so, and if they disapprove It, nobody can deny that all had a chance to state their preference"
 The committee voted last night to submit a report to the common council setting forth the estimated cost of Installing the new system and recommending that the neces- sary authority to make the change be requested of the legislature in the form of charter amendments, the understanding being that if the voters are in favor of it at refer endum in connection with the city election in April. taxes will be due on May l and September , effec- tive in 1892. The committee went on record in favor of providing that all personal property taxes be due on May Is and all real estate taxes amounting to s25 and less be pay able at the same time, the two in stallment accommodations 10 apply only to payment of real estate taxes of s25 and over.
 Councilman w. c. Gibney. com mittee chairman, reported that Cor poration Counsel J. H. Kirkham in formed him that it would be legal to require taxpayers whose bills were S25 and less to pay their taxes at one time, without obtaining legis- lative action to that effect, but Chairman Thomas Linder of the board of assessors disagreed and AL derman David l.. Nair also took the stand that complications might en- sue on the ground of discriminatory action, and it would be safer 10 in- clude in the charter an absolute grant of authority to make the discrimination.
 Assessment Cost Si5O Extra
 Mr. Linder reported that the an nual cost to the board of assessors, pt the two-installment system. would approximate s450. To change the rate books would cost about $40 and to rent an adding machine for approximately five months would cost. s35. Extra clerical help would cost about $500, and he ad- ded ten per cent for contingencies.
 He would limit the time for filing personal property lists with the as- sessors to the period between Octo- Der 1 and [, saving several days on the present practice, and he would shorten the time for completing the abstracts from January 15 10 De- Cember 31. He would have the board of relief commence sessions on January and complete their work January 13. SO that the com- mon counci! could set the tax rate at the January meeting instead Of the Februa'y meeting. The rate books woult be completed April 1o and the frs, one would be turned over to the t;x collector March lst, the others tt be turned over by March 18th.
 Tax office Cost S1 ,50O Extra
 Tax Collector Bernadotte Loomis estimated that the new system would cost his office approximately S1.oO0 a year. It would be neces- sary to spend about Sl,000 for extra clerical help and extra postage would amount to approximately $40O. He would probably employ two fe- male clerks during the busy periods rather than put on one clerk for the entire year.
 President w. H. Judd of the board of finance and taxation and Comp t1oller w. H. Day reported that the city would lose approximately $500 in interest on unpaid taxes and would be put to an added expense of about 5000 for interest on bor- rowed money. The city spent S2.- G96, ,000 between April and october this year, exclusive of bond pay mcnts, and assuming that the two- installment tax payment system had been in operation during that time approximately s1,5S0,000 would have been received by the tax collector, they pointed out. In that event, 1t would have been necessary to bor- row money 10 meet the bills, in an 1icipation of the tax receipts of Sep tember 15, and later in the year it would be necessary to borrow in an- ticipation of the tax receipts of May 15. Under the present system, the city finds it necessary to borrow >,,1, in tirip nf taxes, hence the increase in interest payments to result from the propos- cd change.
 City Will Lose Interest
 In all proba bility. MT. Judd and Mr. Day said the interest the city would receive on unpaid taxes would be less under the proposed system than at present because smaller amounts would be chased as unpaid. In figuring interest on borrowed money, however. they agreed that 1t was difficult to do more than guess because of the fluc- tuation in the money market. Last year the city paid 5 per cent, while this year the charge was only three and three-quarters per cent. The probability is, however, according to Mir. Judd, that there will not be a chance to borrow at a lower rate of interest than now prevails.
 Mir. Judd told the committee that the annual cost of the proposed new system would be between 5000 and $G,000. all angles considered and the question was whether the taxpayers would be willing to pay for the con- venience. Alderman Nair said the convenience was an important con- sideration and s6,O00 spread over the entire tax list would not amount