made and the taxes are not paid within two years of the due date of such reports or such taxes. At present, there is no way to annul such charters except by the long and expensive process of suit by the Attorney-General. This section is modeled after the New Jersey law which provides for the annulment of such charters by proclamation. (Proposed section 194-b.) Amending chapter 351 of the Laws of 1912 to make taxable the franchises of corporations of so-called "no par value" shares in the same way, and with the same force and effect as other franchises are taxed. The purpose of this amendment is to correct an original error whereby the tax was levied upon the net value of the franchise. Such corporations should be placed the same basis as those having par value shares of stock. Providing that the term "mortgage" shall include deeds of trust. It is found that many deeds of trust are made securing debts on real and personal property for the evident purpose of evading the Mortgage Tax Law. Repealing Article 15 of the Tax Law. No taxes under the Secured Debt Law were payable after November 1, 1915. GENERAL WORK OF THE STATE TAX COMMISSION In administering its various statutory duties of a more general nature, the Commission further reports: VISITS TO COUNTIES Section 173 of the Tax Law requires the Commission officially to visit every county in the state at least once in two years to inquire into methods of assessment and taxation, and to ascertain whether the assessors faithfully discharge their duties, particularly with reference to the statutory requirement that real and personal property, not exempt from taxation, shall be assessed at full value. Pursuant to this requirement, the Tax Commission visited, during the year 1915, thirty-two counties of the state. These counties include 461 tax districts. On these visits the Commissioners personally examined local tax conditions, particularly as to the assessment of real property at full value. assessors and supervisors in each district were examined under oath relative to the performance of their duties. Instructions The as to the law and practice were given, lists of sales were examined, questions answered, and effort was made to secure hearty cooperation between the State Tax Commission and all local tax officials. As a result of these visits, the Commission finds much to commend in the local tax work of the state. While considerable progress has been made during the year in the way of raising the assessed valuation of real property to a point nearer its full value, there is yet room for more earnest effort on the part of the local officers to carry out this plain requirement of the statute. Gross inequalities and injustice mark the assessment of real property throughout the State, nor in the opinion of this Commission, will this ever be remedied to the satisfaction of the taxpayers generally, until there is substantial compliance by assessors with the method of assessing property, prescribed by the law of the state. APPEAL CASES Upon assuming office the Commission found appeals from equalizations of boards of supervisors pending in seven counties. These involved thirteen cases as follows: Town of Hanover v. Chautauqua County, 1912, 1913. Towns of Colchester, Hancock, Middletown, Sidney, Walton v. Delaware County, 1913. City of Buffalo v. Erie County, 1911, 1912, 1913. Town of Hempstead v. Nassau County, 1911, 1912, 1913, 1914. Town of Ramapo v. Rockland County, 1913. To date the Commission has closed on the records appeals in six counties involving ten cases, as follows: Town of Hanover v. Chautauqua County, 1912, 1913. Towns of Colchester, Hancock, Middletown, Sidney, Walton v. Delaware County, 1913. Town of Hempstead v. Nassau County, 1911, 1912, 1913, 1914. The only remaining county appeal cases are City of Buffalo v. Erie County, 1911, 1912, 1913; and Town of Hancock v. the Board of Supervisors, etc., of Delaware County. The Commission held a preliminary hearing at Buffalo on May 21, 1915, at which it was ascertained that the city had not yet completed its appraisal of railroad property as required, and that neither side had made much progress in appraising other real property in the different tax districts, for the reason that neither was satisfied as to the number of parcels to be appraised or the number of experts to be employed. A second hearing was held September 14, 1915. Since May twenty-first, the Department has communicated with the attorneys representing the appellant and respondents, suggesting a reduction in the number of parcels to be appraised and also the number of witnesses to be examined, and has set a hearing for January 19, 1916, at 10 o'clock a. m. in the city of Buffalo. ASSESSMENT MAPS Section 30 of the Tax Law, permits any city or town to establish a tax map for assessment purposes, and such map must be approved by the State Tax Commission. Further statutory provisions require the cities and towns of Westchester county and permit the towns of Nassau county to prepare assessment maps to be approved by the State Tax Department. Upon the presentation of each map, it is carefully examined by the Commission to see that it complies with the law. When this Commission assumed office, five maps covering tax districts in different counties of the state had been approved. The present Commission has approved thirteen maps submitted by towns in Westchester county, as follows: Town of Scarsdale. Town of Yorktown.. Town of Mt. Pleasant. Town of Greenburg. Town of North Castle. Town of Somers. Town of Rye. Town of Mamaroneck. Town of Pelham. Town of North Salem. Town of Bedford. Town of Ossining. COUNTY EQUALIZATIONS The rule to be used in the equalization of assessments between towns of a county is set forth very precisely in section 50 of the Tax Law. On investigation, the Commission found that in counties having special commissions on equalization, no definite rule was in use in establishing the equalization of assessment of real property. To correct this omission, under date of May 17, 1915, the Commission issued an order requiring all such commissions existing under the Tax Law by special act, to comply with the requirements of section 50 of the Tax Law. The order further required the tables of percentage used by said commissions to be filed with the State Tax Department not later than December fifteenth of each year. The same requirement has been made of all boards of supervisors which have not used the rule of equalization required by the statute. A uniform rule is essential to a fair and just equalization. It places all counties on the same basis. It would be a valuable aid to the State Tax Commission in ascertaining the rate of assessment of property in any individual tax district information which is necessary in the equalization of special franchise valuations. PUBLICATIONS A 1915 edition of the Tax Law has been published by the Commission; this also includes the general and special laws of the state having to do with assessments and taxation. A circular letter of instruction to all assessing officials has been issued embodying and explaining recent changes in the Tax Law, with particular reference to the act creating the Tax Department, in its relation to local officials. EDUCATIONAL WORK A State Tax Commission has no more important function than that of gathering facts regarding the administration of the Tax the state, and to interested citizens generally. Tax problems are among the most important and pressing of all those now before the people of this commonwealth. Taxpayers look, and they have a right to look, to the State Tax Commission for accurate and helpful information on this obscure subject. Recognizing this responsibility, and pursuant to the provisions of section 171-b of the Tax Law, the Commission has summoned all city and town assessors in the state, and has also invited all village assessors and supervisors to a conference to be held in the city of Albany on January 12 and 13, 1916, for the purpose of considering matters relating to taxation, securing uniformity of valuation throughout the state, and the discussion and formulation of desirable changes in the laws relating to taxation and methods of assessment. At this conference, some of the leading authorities on taxation in the United States are to present various phases of the subject and there will be general discussion by those in attendance. This is the first conference of the kind ever held in this state, and the response to the invitation of the Commission has already been of such proportions as to insure a large and successful conference of tax officials and citizens interested in taxation. By correspondence, by public addresses upon invitation, and by making every effort to develop the spirit of cooperation between the State Tax Department and all local tax officers, the Commission is endeavoring to fulfill its important duty of placing exact and authoritative information before the tax officers and all other interested citizens of the state, to the end that our tax problems may receive the intelligent consideration of those who are directly concerned in their successful solution. GENERAL RECOMMENDATIONS While there has been some demand for radical change in the taxation system of the state, the Tax Commission believes that a great improvement in the present order may be brought about by certain changes in details in the present statute. So believing, and to the desired end, the Commission, in addition to the specific suggestions revising the Tax Law, respectfully makes the following general recommendations: |