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AND
NEW YORK, AUGUST 26,- 1916
REPORT OF COMMITTEE ON LEGISLATION
Digest of Result of Past Session at
Albany on Matters Affecting Real Estate
FOLLOWING are excerpts from the
report of the Committee on Legisla¬
tion of the Citizens' Union, for the ses¬
sion of 1916. Albert S. Bard is the
chairman of the committee and W. E.
Youker is the Secretary and Albany rep¬
resentative:
The Legislature of 1915 authorized a
special committee to study the subject of
taxation. The question submitted to this
committee by the Legislature was: "How
can the State most effectually reach all
property which should be subjected to
taxation and avoid conflict and duplica¬
tion of taxation on the same property?"
Senator Mills was made chairman of the
committee. It held hearings throughout
the state and submitted a valuable report
on the general subject of taxation, in this
and other states and countries.
Tax on Personal Property.
Its principal recommendations were
that the present tax on personal property
should be abolished; that the taxation of
general business corpora:tions on a divi¬
dend-capital-stock basis should be abol¬
ished, and that an income tax on in¬
dividuals and general business and manu¬
facturing corporations should be im¬
posed. An income tax bill, to carry out
the recommendations of the committee,
was introduced by Senator Mills, but it
' was not advanced by the Legislature.
The principal reason given for lack of
support in the Legislature was that, from
the standpoint of the majority party, it
was politically undesirable to urge any
important tax legislation this year. Upon
the recommendation of the committee,
the Legislature extended its time for
final report to February 20, 1917.
Assemblyman Kelly introduced a bill
providing that all lands acquired by a
municipal corporation for the purpose of
a water supply should be assessed and
taxed at the actual land value exclusive
of the improvements thereon, and at a
valuation not higher than that of similar
lands in the immediate vicinity; and that
lands flooded by the construction of
dams or used for the storing of water
should be assessed on the same basis as
lands not under water. The valuation for
taxation purposes was restricted to the
average rate of valuation per acre of
improved acreage tracts similar in char¬
acter and location.
The effect of such legislation would be
to afford much needed protection to New
York City against exorbitant assess¬
ments on its water supply lands. The
bill was killed in committee.
Taxing Signs.
An important bill, drafted by members
of your Committee for the Municipal Art
Society, was introduced by Senator
Wagner and advanced to third reading.
It gave cities the power to tax adver¬
tising signs and devices, including the
business of affixing such signs and the
procuring and disposition of interests in
real property and space for advertising
purposes. The bill provided that the tax
rate might vary progressively with the
size of the sign or device, or its position,
or with any circumstance relative to its
value as an advertisement.
About $14,000,000, or a little less than
6 per cent, of the city's budget fer 1916
represented New York City's share of
the direct tax for the support of the
State Government. The criticisms
levelled at the Governor and the State
Legislature by the local city authorities,
taxpayers, civic and other organizations,
against the direct tax provided for by the
1915 Legislature, resulted in the auth¬
orization by that Legislature of the ap¬
pointment of a committee to investigate
the finances of the City of New York.
Senator Elon R. Brown, the majority
leader of the Senate, was made chairman
of the committee. He conducted the
investigation along constructive lines,
apparently aiming to learn the difficul¬
ties of the situation and discover the
proper remedies rather than merely to
criticize or enlarge upon faults. The
measures which became law as a result
will afford the city substantial relief in
many directions.
After the committee had determined
upon its recommendations. Mayor
Mitchel, on behalf of the city, presented
a program which included additional
legislation. It is safe to say that never
before has so much interest been aroused
in the cause of obtaining for the city an
increased control over its own finances,
and a more equitable adjustment of gov¬
ernmental burdens between city and
state. The members of the Legislature
from New York City, regardless of
party, met upon the invitation of Mayor
Mitchel, to consider the Mayor's legis¬
lative program — an unprecedented
event. Civic organizations participated
in the discussions. The conferences were
exceedingly helpful and encouraged con¬
certed action on the part of New York
City members on many of the proposed
measures.
Brown Committee Program.
The Brown Committee in its report
recommended legislative action as
follows:
Changing the time for the collection of
city taxes from May and November to
January and July. A bill making this
change was vetoed by Mayor Mitchel.
Enacting the "pay-as-you-go" policy of
the present city administration into law
(Chap. 615).
Conferring upon the city (subject to refer¬
endum) power to fix the salaries of its of¬
ficers and employees, other than judicial
ofllcers. One of the two bills covering this
subject passed the Legislature. It was
vetoed by Mayor Mitchel.
Placing-county expenses, including sal¬
aries, under the control of the city (sub¬
ject to referendum). A bill on this sub¬
ject failed of passage.
Constitutional amendment mpking bills af¬
fecting counties in the city of New York,
city bills. This passed the Senate only.
Giving to the city government control of all
expenditures of the Water Supply Board,
the Court House Board and the portion of
the expenses of the First District Public
Service Commission payable by the city.
Laws were enacted to put tho two latter
recommendations into effect (Chaps. 511
and .572).
Charging the State with the regulatory
expenses of the Public Service Commission
for the First District (Chap. .572). Tbe
estimated annual saving to the city by this
change, which is not operative until 1917,
is $.500,000.
Prohibiting further construction by the
State of roads in cities and prohibiting the
maintenance of county roads by the State
(Chaps. 450, 570 and 571).
Transferring control and maintenance of
the city's normal schools to the State. A bill
to this effect did not advance.
Dividing the automobile tax with the
counties, subject to the restriction that,
except In New York City, it be expended on
roads (Chap. .577).
Providing that any additional excise tax
be divided between the State and city. The
estimated annual revenue to the city from
this source ig .$1,000,000. The provision giv¬
ing the city this additional revenue is not
operative until 1917 (Chap. 4](>).
Placing the Sheriff of New York County
on a salary basis exclusively (Chap. 525).
This means a saving ot over $50,000 an¬
nually. It becomes operative in 1917.
Abolishing the civil jail in New York
County. A bill to this effect passed the
Senate, but did not advance in the Assembly.
CJiving the city power to consolidate de¬
partments. No such bill was introduced.
Mayor Mitchel's Program.
The Mayor estimated that his pro¬
gram, if enacted into law, would make
possible a saving of approximately $25,-
000,000 in the 1917 budget, as compared
with that for 1915, with an accompanying
reduction in the tax rate of more than
31J4 points. This estimate was based
upon the assumption that there would
be no direct State tax for 1917. Mayor
Mitchel's program included the pro¬
posals urged by the Brown Committee
in relation of normal schools, revenues
from the excise tax, the "pay-as-you-go"
policy, charging the state with the regu¬
latory expenses of the Public Service
Commission, motor vehicle fees, giving
the city control over the expenses of the
Board of Water Supply and the Public
Service Commission, and transferring
the custody of prisoners in the New
York County civic jail.
It contained the following additional
proposals, some of which passed:
The control by the city of the salaries
and number of city and County employees,
other than elective officers, as provided for
by the Cromwell bills of 1915.
The abolition of the office of public ad¬
ministrator in the five counties in the city
and the transfer ot their functions to the
City Chamberlain.
The abolition ot the offlce ot the three
commissioners of record, their work to be
completed by a temporary force in the of¬
flce of the Register and County Clerk.
The abolition of separate counsel for
various County officers with provision that
the Corporation Counsel act as counsel for
them.
The abolition of the County jails and the
transfer of their maintenance to the De¬
partment of Corrections.
The consolidation ot the ofllces of the
Commissioners ot Jurors, under one head, to
be appointed by the Justices of the Appellate
Division.
The contribution of $1,000,000 by the State
toward such vocational training in city
institutions as corresponds to the work ot
the normal schools ot the State.
The apportionment to New York City of
Its fair share of the moneys appropriated
for good roads throughout the State under
the last $50,000,(XK) bond issue authorized
for that purpose.
The transfer to the city of the proceeds of
the stock transfer tax collected in New York
City, amounting to approximately ?1,000,000
annually.
The establishment of a board to have
charge of the purchase of city supplies. A
bill providing for a Department of Purchase
was introduced, but passed the Senate only.
The centralization of the collection of
water revenues in the Finance Depart¬
ment.
The repeal of Section 48 ot the Tax Law,
which permits corporations holding fran¬
chises to set off tolls and car license fees
against their special franchise taxes.
The reduction from two to one ot the
number of Commissioners of Accounts
(Chap, 517).
A reduction in the size of the Board ot
Education.
Excess condemnation, as provided for In
the bill which became law in 191,5 and
which was inadvertently repealed (Chap.
112).
The consolidation of the various repair
shops and divisions of city departments hav¬
ing to do with repairs and maintenance
â– work, into a new department ot "Plant and
Structures." This department was created
(Chap. .52S).
The change of the Department of Public
Charities into a Department of Public Wel¬
fare : the abolition of the Board of Health
and the placing of all hospital institutions
under a single-headed department.
Although the bill repealing Section 48
of the Tax Law did not advance, a bill
introduced by Assemblyman Aranow