The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1885-01-29
Assessing Property.

upon the discharge OF their duties. Inc
laws affecting taxation are so detective
that it is almost impossible to reach fair
estimate of what per cent. of valuation
is really fixed as the basis Of taxation
We have in past years called attention to
the complications which exist in this re-
spect, in the hope that the Legislature
would remedy a great evil, which imposes
upon the people a burden of duties, which
they really do not think Of and which are
not warranted by the Constitution. That
instrument provides that there shall be
uniform rate of assessment, and when
this is ascertained. a certain rate OF taxa
ton is fixed. to meet the demands of gov
eminent. 1t is not contemplated that
there shall be duplication of the tax on
any class of property, but this is the case
on more than half of the real estate OF the
Commonwealth. For instance: Smith
purchases piece of property from Jones,
one-third of the purchase money to be
paid in hand, and the balance in deferred
payments, bearing interest. A deed to
the property is made, and a lien reserved
to secure the back instruments. The
property so conveyed is assessed at It's
cash value in the hands of the purchaser,
and he is required to pay taxes on the
whole of it. The party selling holds the
notes of the purchaser for twO-thirds OF
the purchase price, and these are taxed IN
~, boode oc ,,orconol nroportv Tn this
way two-thirds of the property is sub
jected to double tax. An instance came
to our notice several years ago, while
writing on the subject, which shows to
what extent this method of assessing prop
erty may be carried. A piece OF property
had been sold for over 100000. The cash
payment was the cost of suit and sale.
The property was assessed for taxation III
the hands of the purchaser the distribu-
tive share of each creditor was taxed in
his hands presumptively as personal prop
erty, and the bonds for the deferred pay
ments were taxed in the hands of
the Receiver as personal property 1t
was thus that this property was really
taxed three times, when the Constitution
only contemplates that it should be sub.
jected to one tax, uponits cash valuation.
While the rate of taxation for State pur-
poses is fixed at 40 cents on every 500 of
list, it is rarely the case that the actual tax
imposed is less than 60 cents on the 500,
where property has changed hands on the
usual terms.
1t will be readily seen from this state
ment of the methods of taxation, why it
is that the people feel the oppression, yet
do not seem to have clear idea OF the way
in which their pockets are reached through
| the law. In no other State in the Union,
we venture the assertion. without having
| the data before US to base positive state
ment, is the system of taxation so COM
plicated and unjust, and where the inten-
| tion of the Constitution requiring uni
form rate of valuation and taxation, is so
| fagrantly violated. In Maryland and
New York this duplication OF taxation on
the same property is provided against
The amount purchaser may owe on
property in his possession, is deducted
from its actual assessed. value, as the out
standing obligations are reached in the
hands Of the party in whose favor they
were made. The justice of this provision
| is apparent, when it is remembered that
the debtor is paying interest on his de-
ferred bonds, and taxes only on so much of
the property as he has paid for.
The assessors value the real estate of the
Commonwealth. The aggregate amount
of this valuation is taken as the basis of
revenues ; the amount needed to meet the
obligations of the State is estimated. and
a rate of taxation fixed on the property SO
assessed which will assure the revenues
whether or not the property is encountered.
He merely estimates the value of the prop
erty. 1t is returned to the proper office
in Richmond, and the Legislature, with
this return of aggregate values before it,
arranges such rate of taxation as will meet
the demands upon the treasury. The prac-
tical operation of the system is to tax real
estate to it's full cash value and to tax
bonds representing this real estate at the
same rate that the property is taxed, or
duplicating the tax on real estate which
may be encountered. The system is un-
| just and unconstitutional.
| There is another defect in the system of
assessment, rs it obtains in Virginia,
which should be corrected. 1t is in the
rating of the value of properties for taxa
ton, not upon the returns they make to
their owners, but upon fanciful standard
of valuation. Property is only valuable
to the owner as it may be productive. An
acre of ground, from its locality and sur
roundings, may have an estimated market
! value, but be totally productive. An
other acre of land may be estimated at
less value, but be really productive, yield
| ing handsome interest on the invest
ment These properties are assessed at
their imaginary value, and not according
| to their productions. compelling the own
Ell of non-productive property to pay more
taxes than are paid by the posSessor OF
property which yields good revenue. We
have in mind now case in point. In the
assessment Of 1880, a vacant lot, return
ing no productions, was assessed at $1,000.
1t was subsequently sold for 81, 500. on the
usual terms of commissioners sales. A
piece of property, with business house
on it, was assessed at 81 800, and within a
month afterwards. it sold for $1,000. Here
was piece of property that was esti-
mated to be worth so much, yet did not
yield copper of profit to it's owner, but
was assessed on this imaginary value. An
other piece which was assessed for less
than the price named, and paid less taxes,
vet sold for three times its assessed valua-
tion.
Properties ought to be assessed accord
ing to the actual value in productions. A
farm in the Valley of Virginia may be es-
timated to be worth $40 per acre and the
assessor takes this as the criterion to guide
his Judgment in fixing it's taxable value with
out inquiry into the value of productions,
as compared with other lands, assessed for
much less but yielding greater returns. A
tobacco farm in Eastern Virginia may be
| estimated at $40 per acre and vet Weld