A Close Point

A case which it is estimated will ultimately involve close to $100,000,000 and will certainly affect tremendously the housing situation in New York City was decided by Mr. Justice Tierney of the State Supreme Court.

In Hermitage Co. vs. Goldfolge he held that the tax exemption law of 1920, one of the Emergency Housing Laws of that year, is unconstitutional. The statute became a law September 27,1920, and has been twice amended, but never challenged. All building in New York City since its passage has been done upon the belief that the structures erected would be nontaxable for 10 years.

In the Judge's opinion the law violated the provision of the State Constitution which prohibits " granting to any person, association, firm or corporation an exemption on real or personal property " by means of " a private or local bill." While his stand must have required an admirable degree of courage, there is considerable substance to the accepted opinion that he fell into error and there is an ample basis for expectation that the law will be sustained on appeal.

The legal point is a close one. The statute, as amended, authorized the legislative body of any town or city to grant tax exemption until January 1,1932, to the owners of all buildings used for dwelling purposes which were completed after April 1, 1920, or commenced before April 1. 1923, and completed within two veal's thereafter. Thus, unless all counties or cities availed themselves of the privilege granted by the law, it might have a local application. But ordinarily for a bill to be considered a local or private bill it must be limited to a particular locality, individual or thing. As tax exemption might be general or local, according to the action taken by the counties or cities, the law is not a purely local one, and there is reason to believe that the appellate units will not consider it to be such. It has already been referred to favorably by a higher court.