Year: 1878

| State and Local TAXATION ln the City.


The resolutions recently presented in the
Board OF Aldermen directing a general
reduction of the assessed valuation of real
estate in the city ofNew York were doubtless
instigated by sense of the injustice done to
the city by the action of the State Board Of
Equalization. That Board is composed of
missioners of the Land Office, the lat
ter being the Lieutenant Governor, the
| Speaker Of the Assembly, the Secretary
of State the Comptroller, the Treasurer,
| the Attorney General and the State
Engineer and Surveyor. Out Of its ten MEM
bers New York has three, and this dispro-
portionate representation of q county that
has sometimes paid over fifty per cent of
the total State taxation and that last
year paid nearly forty-fve per cent Of the
whole, in o Board empowered to raise the
assessed values oil over the State, has led to
an unfair discrimination against New York
The city has, in fact, been made to pay
large percentage of the State tax which
ought Justly to be borne by the other coun-
ties. The assessed valuations in New York
by the local board of taxes and assessments
have been fixed as a rule ut sixty per cent OF
the fair, salable value Of the property
This has been regarded as an equitable
arrangement and is certainly as heavy
valuation as property ought to be required
to bear for taxation. The local assessed
values in majority of the counties of the
State have not been over thirty per cent
of the actual salable values, or half the
percentage fixed by the local assessors
in New York. Yet in 1876 the State Board
of Equalization raised the valuation in New
York for the purpose Of State taxation
nearly two hundred million dollars over the
local assessed valuation, while decreasing
the valuations of the local assessors in some
other counties. 1t is not surprising that
the real estate owners and the local authori-
ties OF New York should prove restive under
these exactips, and should beat about for
some means of compelling more equitable
treatment at the hands Of the State Asses
sors.


So far as the Aldermen desire to express





this gross injustice, and SO far as they seek
to discover some means by which the
burden Of taxation, both State and local,
can be made to press less heavily on the
real estate Of the city, they are en-
titled to sympathy and support.
The trouble with the proposition to
make an indiscriminate reduction of
assessed values oil over. the city
is that if carried into operation it would
neither tighten the load Of our local taxation
nor compel more just treatment at the hands
of the State Assessors. If we were to cut
down our assessments from nearly nine
hundred millions in 1877 to four hundred
and fifty millions in 1873 all we should ac-
complish would be to nearly double the
local tax rate, and real estate would gain
nothing by this except that trifing
extra amount would, through the in
creased rate per cent of the tax levy,
be placed on personal property. Even this
might in the end prove loss rather than
saving to real estate, inasmuch as the diff
Guilty of collecting the personal tax causes
heavy deficiencies in each years levy, and
this deficiency, which must eventually be
made good. would be likely to be increased
if the rate to be paid on personal estate
should be nearly doubled. The proposed
reduction Of valuations would not, there
fore, of ITSELF relieve the taxpayer of
feathers weight Of the burden of local tax
alton. 1t certainly would be utterly in
efficient to compel the State Board
Of Equalization to do Justice to the
city Of New York, inasmuch as that Board
would still have it in it's power to fix the
valuation at what amount it might choose to
consider fair and equitable for State taxa
ton, despite any reduction the local asses-
sors might make. The Aldermen are there
fore merely fighting windmills when they
attack the present assessed valuations of
the real estate of the city, while the strength
of their official positions, if used sensibly
and in practical direction. might do much
to remedy the evils they profess to deplore.


The State tax is not now very burden
some, since large amount Of State in
debtedness has been cxtinguished and the
government is administered with commend
able economy. The total amount of State
taxes to be paid by the city this year is un-
der four million dollars, including the one
and one-eighth mill tax for the common
schools. But this is no reason why JUS
tice should be denied the city in
the matter Of the equalization of as
sessed values throughout the State. The
principle is the same whether New YorlS's
share of the State tax is four million dollars
or fourteen millions. In 1876 the valuations
in New York ana Kings by the local as
SCISSORS amounted together to eleven hundred
and sixteen million dollars against about
fourteen hundred million dollars local valu-
ations in all the other counties of the State.
Yet New York and Kings together have
only thraa mem hers ont of ton In tha