Year: 1871

Commissioner David A welIs's Report.


Tax Commissioner Wellss report was
submitted TO the New York Legislature
on Thursday. He shows in many WAYS
and by numerous cases the following:


First. That State or municipal taxation
is now in all States unsystematic need
lessly interfering with industry, uncertain
of collection, in many cases oppressive,
and often, particularly in New York State,
so burdensome as to drive away capital
and make many industrial enterprises i'm
possible.


Second. That among the chief causes
for these vices IN the system of State tax
alton IS the attempt made to subject per-
sonal property of every kind to taxation


Third The attempt to tax personal
property has everywhere failed because of
evasions of capital; that it has therefore
been form of taxation not injurious to
industry where it was actually levied, but
partial, and thus unjust in its bearing,
because it could not he collected fairly
and generally.


Fourth. He exhibits different and con-
trary decisions of Courts in different
States concerning the place where person
al estate may rightly be taxed, showing
an astonishing degree Of confusion.


Fifth. He shows the practice of other
countries-Great Britain, France, Prussia,
and Holland-of not attempting to tax
personal estate, and exhibits the impor-
tant results of such exemption in favor of
the industries of such countries against
our own, showing, for instance, that the
mere State and city taxes of New York
discriminate against the building and out
fit here Of a steamship feet to a fatal de-
gree. Our State and local taxes would
be 227-100 per cent. on it's whole property
or accessible capital, while if the company
were English it would pay no local taxes
on its property, but only q tax on the
rental value OF its Offices, thus, without
counting at all the taxes of our general
Government, our local systems of taxation,
and that fatally burden industry, the COM
missioners suggest two outline codes to
carry out the provisions they recommend
for securing personal property. The first
of the act provides that the capital stock
and property Of any corporation Of this
State, organized as trust company, ferry,
plank road, or turnpike company, savings
bank, fire or marine insurance companies,
or banking company to receive deposits or
make loans, and the shares in such banks
and all f0reign insurance companies doing
business in the State shall be taxed as at
present, and every private banker shall be
taxed on his capital employed, and in no
less sum than one quarter Of his average
deposits that no other personal property
shall be taxed all lands shall be assessed
at one-half of their value, and all build
ings at their full value.


The second outline code provides that
companies named IN the previous code
shall be taxed as heretofore, except that
such companies may deduct from the total
of their capital the assessed value of their
real estate. Occupiers of real estate as
owners or tenants, and not as dodgers are
to be assessed a sum equal to the assessed
rental value of the premises, this same to
be added to their personal assessment, and
the tax on it to be collected in the same
manner as other personal taxes, but no
other personal property shall be taxed.