The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-30
THE FINANCES OF INDIANA.
4 Probable Decrease of 0ne-Eighth in
the States Tax Revenue.
Auditor Rice Thinks the Next Appraisement
Will Show Depreciation of 800, OOO,-
900 in the Value of Real Estate.

1Herc VIII DO u great uScrt<ssc III tnO E"ANO
revenue from the taxation of real estate after
next year" remarked State Auditor Rice during
conversation yesterday about financial matters
'sWhyf" inquired Journal reporter
"Sinlply for the reason that values are lower.
The general financial depression which prevails
has lowered the valuation of property. Next
year is the time for making the next real estate
appraisement, and it will, of course. be made
upon the basis of the present deprecated
valuation The assessment now is upon the
basis of the last appraisement, which was made
IN 1879, when the valuation was much higher
than now. AS an instance Of how property has
deprecated, take the Franklin Insurance build
ihe over here at the intersection of Illinois
street and Kentucky avenue. Three years ago
the owners refused s65. 900 for the property. 1t
Is now in the hands of the court, and the most
that can be obtained for it is $47 100, which W. c.
De PAW has offered to give for it. There isn't
more desirable business site in the city. 1t is
only an instance of the general depreciation in
property. There has been gradual decline in
the appraised value of property for taxable pur-
poses for twelve years. In 1874 the total valua
alton of realty and personality was 1854, S57, 49,
of which $261, 958, 707 was on personally. Since
then it has deprecated nearly $500, 000 In
1879, when the last appraisement of real estate
was made, the valuation $637 763, 081, and
in 1888 it had declined to 1903, 23l, 53S."
"How much do you think the next appraise-
ment will reduce the valuation on real estates!
was asked.
''The appraisement, think, will be about $780,
5000 less than it is now. That, you see, is
depreciation of about one-eighth."
f'And the State revenue from taxation will de-
crease proportionately"
Certainly"
"What will be the effect upon the States
fnancesp
1.-THE Legislature will have to do something to
raise more revenue One thing which it will
have to do is to raise more tax from personal
The State, such as bonds, mortgages
and loans is not reached for taxation,
and besides there is considerable loss through
the loose system of assessment on personality.
1t is largely undervalued, and the fluctuations
In its valuation are not proportionate with the
fluctuations on real estate, which shows that the
system of assessment is at fault. The law
should be so amended as to get as nearly as pos
sible at an equitable valuation Of both real and
personal property Taxpayers should be re-
Quired by assessor to swear to their returns on
personality. It is safe to say that there is not
one person in fifty who swears to his returns. 1t
law could be passed that would reach this class
of property properly, throughout the State it
would very largely increase the revenue"
''But is not the appraisement real estate
also far below the actual valueF
1T is; but still the personal property taxable
valuation is less than one-half that of the real
estate Personal property continues to
accumulate, and IT, therefore,. ought to
increase in the aggregate of valuation
zach year. Still it does not increase
proportionately with real estate, and it is evi
dent that the inequality does not actually exist
OF the 1900 000 900 of taxable property, only
about $3.50 600, 900 of it is personally. There
will probably be less change in the appraisement
of farm land next year than on city property.
The valuation of farm land increases rather than
ciating, and is suffering most from
che prevailing financial depression. The
question of raising the necessary
enue however, relates chiefly to
system of appraisemsnt and assessment, in
which there are many bad defects that need
remedying"
But with the depression in appraised valua-
tons and the consequent decrease OF revenue,
will not an increased tax be inevitablel"
THAT will have to come, whether there is any
depreciation or not. The current expenses of
the State government will be largely increased
after next year The maintenance of the new
insane hoaptals will be an additional cost of not
less than $500 900 year. The expenses of all the
other institutions are increasing as the State
grows larger. 1t Is astounding to think that
the State government with all its public insti-
tutions, is run at an annual expense of only
about 81 400 600. of which the people actually
pay only about 81, 100 0OO while the rest is de-
rived from the resources for earning Yet
Indiana is the fifth State in the Union. There
are in the Office of the Auditor of New York 113
clerks employed--more than four times the
number of persons employed in subordinate
capacities in all the State offices in Indiana"