M.ny 13, 1905





RECORD AND   GUIDE





1057





gence or in bad faith or with malice in making the assessment
complained of. If the writ shall be quashed or the [prayer of the
petitioner denied] assessment confirmed, ov if the assessment com¬
plained of shall be reduced by an amount less than half the re¬
duction claimed before the assessing officers costs and disburse¬
ments shall be awarded against the ptlitioner [not exceeding
the costs and disbursements taxable in ar. action upon the trial
of an issue of fact in the supreme court]. If the assessment
shall be reduced by an amount greater than half the reduction





claimed before the assessing officers, costs and disbursements
shall be awarded ugainsl the lax district represented by the of¬
ficers whose proceedings may be reviewed. The cost and dis¬
bursements shall not exceed those taxable in an action upon the
trial of an,issue of fact in tbe supreme court, except that if evi¬
dence shall be taken there shall be included in the taxable costs
and disbursements the expense of furnishing to the court or to
the referee a copy of the stenographer's minutes of the evidence
taken."





Legislature  and  Taxation

liow the State Met the Problems that Confronted It

By    LAWSON    PU RDY





WHEN the New York legislature met it was con¬
fronted by a tax problem which was rendered
difficult of solution by the ' policy adopted by
G'overnor Odell and endorsed by the Republican party
of raising all state revenue by various special taxes,
ins.tead of by a direct tax levied on the real and personal
property subject to taxation for local purposes. Governor Hig¬
gins, in his campaign before election, endorsed this policy anJ
pledged himself that there should be no direct tax for stale
purposes. 'By reason of a decision of tbe highest court of the
state invalidating a tax on certain premiums of life insurance,
by which the revenue from this source was reduced, and because
of the increased need of the state for canal purposes, the state
was in need for increased revenue to the amount of flve million
dollars or more.

A plan of raising this revenue was presented a year ago to the
New Tork Tax Reform Association and endorsed by the leading
commercial organizations of the state. By this plan mortgages
were to be exempted from local taxation and taxed once at the
time of recording at the rate of one-half of one per cent,; while
other securities were to remain subject lo local taxation unless
a tax of one-half of one per cent, were paid and the instrument
stamped. This plan was presented in the form of two bills, which
it was said would raise more than five million dollars a year.
Nothing was done by the legislature until the middle of Feb¬
ruary, when a bill was introduced by the Commiitee on Taxation
of the Senate, providing for a tax on sales of all shares of stock
at the rate of two cents on each $100 of nominal value. After
much criticism this bill was amended, and in spite of the un¬
animous opposition of all the commercial bodies it was passed
early in April.                                               .   .

Near the first of March the bills of the Tax Reform Association
for a recording tax on mortgages and an optional tax on securi¬
ties were introduced by the Senate Committee on Taxation, and
at the same time a bill prepared by the committee imposing an
annual tax on mortgages at the rate of one-half of one per cent.
The annual tax was imposed only on future mortgages and exist¬
ing mortgages were left subject to existing taxation as at present.
In its general structure the bill was largely taken from similar
bills of previous years, which have been introduced annually
since 1900. The public was so used to this mortgage tax pro¬
posal and it had been defeated so often that those most inter¬
ested did not awake to the importance and danger of the situa¬
tion until the Republican members of the legislature had voted
to make the bill a caucus measure; then opposition was too late
to defeat it. It was passed on the oth of April, but the Governor
was so impressed by the arguments of those who opposed the bill
that he held it for ten days, then had it re-called by the legis¬
lature, and sent back to him within ten days of adjournment,
so that it would become what it called a thirty-day bill, giving
bim thirty days to consider it after the legislature had adjourned.
At the same time amendments were hastily prepared by the Sen
ate Committee, a bill embodying these amendments introduced
last Monday, and sent to the Governor on Thursday.

The annual mortgage tax bill, as amended, takes effect the first
of July, By its terms a mortgage recorded on or after July 1st
will be subject to a tax at the time of record at the rate of one-
half of one per cent, for the period remaining of the year ending
July 1st. On the first of the following July an annual tax of one-
half of one per cent, will become a lien. This annual tax may be
paid at any time after July 1st, and becomes payable the first of
the following October. If not paid by the first of January the
mortgage may be advertised and sold. In the opinion of many
good lawyers the tax cannot be collected from non-resident
holders of mortgages, although that is the intent of the bill.

If the Governor approve the Mortgage Tax bill efforts wili
undoubtedly be made at the next session of the legislature to pro¬
cure the repeal of the annual tax, leaving only the provision for
a recording tax.

The tax on sales of stock is generally regarded as an unfor¬
tunate innovation in methods of taxation, imposing for the flrst
time in the State of New York, a tax on a process of trade.
There is no argument made  for the bill which  would not  also





apply to the sale of any other property. It is said that the
effect of the law will not be immediately felt in all its seriousness,
as the hope of repeal will check the natural diversion of business
to other states. The enactment of tbese two measures has con¬
verted many of the supporters of the policy of special taxes for
state purposes to tbe belief that this policy is unwise and unsafe,
and that there must be a return to the policy of direct taxation,
the old  difficulty of equalization  being obviated  in some othei

Another revenue raising measure was adopted by which the
decision of the Court of Appeals in relation to the taxation ot
insurance premiums was designed to be nullified, and all pre¬
miums of insurance whether paid on account of old or nevt
policies are subject to a tax of one per cent. There was com¬
paratively little oiiposition to this bill, due probably to the fact
that the large insurance companies in New York are not in good
odor at present, and because the great army of the Insured do
not fully realize that a tax on life Insurance premiums Is paid by
those who Insure their lives.

Having described al! the objectionable "tax bills which have
been enacted, it r<.-mains only to describe the one good measure
which became a law tbat affects a large number of people.
Hitherto those wh.) have been obliged to institute certiorari pro¬
ceedings to procure a reduction on oppressive assessments on real
or persona! propel ty, have been obliged to pay the costa of the
pni'^eeding, and cculd not recover either their costs or disburse¬
ments. A bill prepared by tha New York Tax Reform Association
wa.l enacted which gives costs to the petitioner in case the
assessment complained of is reduced by an amount equal to more
than half of the reduction which was demanded at tbe hearing
by the assessors. This bill is a measure of justice to those whose
asficssmcnts are excessive, and will tend to make assessors more
cautiDus and careful about their work, and more prudent In re¬
fusing to accede to just claims for reduction.





Building Statistics.

Plans and Specifi.ations for New Buildings Piled and Acted Upon
in the Eorough of Manhattan During the Year Ending December 31,
U)0-1,   as  Reported   by   the   Superintendent of Buildings.

No. of   'No. of Estimated
Classification.                                         Plans.    Bldgs.      Cost.

Dwelling houses, es . cost over Sf.50.0(^___      10        12      $1,2I38,C00

Dwelling houses, est.  cost between $20,000

and  .i;.-,ll.Ofl(l   .......................      15        37        1,090,000

Dw.-lling houses, es .cost less than .i;20,UOO.      16        35          316-lOO

Tenement houses, e.'t. eost over .t;ir),000. ..    49S       828     43,607.750
Tenement     houses,     est.     cost    less     than

$15,€(10...........................................

Hotels and boarding houses..............      12        12        4 3Go 000

Stores, tst. cost  ov;r $:.{0,000............      44        45        5,3no.000

Stores, est. cost bet. .'Jl-j.OOO and $.^0,0O0. .      20        28          582 000

Stores,   est.   cost  less   than   $15,0t:0......      37        38          172 100

Of!ice buildings  ........................      31        38       5,06L7.^0

M^nufacKries and workshops............      Sl        92       4 240(00

Schoolbouses   .........................      19        24        3!28o!000

Chtrohes   .............................      12        13        1,116000

Puhiic buildings—Municipal   .............       11         n        1,477,000

Public buildings—Places of amusem.nt, etc.      13        13        1,895000

Stalles   ..............................      52        53        1,118.500

Olher structures   .......................    122       144          309.180

To'als   ............................l,ti:',-j    1,4:;3    $75,267,780





Flans for Plaza Hotel Annex.

Henry J. Hardenbergh, architect, of 1 West 34tb st, is prepTing
plans for an addition to tbe Plaza Hotel and for interior alter-
aticns to the present building. The hotel occupies the block
front, 200.10 ft on the west side of tbe Plaza from oSth to 59th
sts, and has a depth in 58th st of 125 ft, and in 59th st of 175 ft.
It is an 8-sty red brick structure. The annex will adjoin the
building in 59th st, having a frontage in that thoroughfare of 75
ft, with a depth of 100.5, It will be of the same height and
mateiial as the older portion. The present hotel will undergo
extensive alterations, making it thoroughly modern and up-to-
date. The property is owned by a subsidiary company of the TJ.
S, Bealty & Improvement Co., the Plaza Realty Co., 137 Broad-