Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 75, no. 1939: May 13, 1905

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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-