The record-union., 1892-10-10
CONCERNING STATE TAXES.
The State Board of Equalization Ex-
plains Its Action.
What It's Report Shows-The Methods
by Which Property Valuations
Are Arrived at.

The State Board of Equalization has
completed its biennial report to the Gov
ernor and sets forth its work as follows ::
So much has been said in regard to rev.
enue and taxation by former boards, and
SO many recommendations made, that it
would be merely a repetition of some for
mer suggestion to make any attempt to
change existing laws, yet there are few
matters that we repeat, in the hope that
they may receive some attention.
The whole assessment system is based
on the supposition that each taxed per-
son will submit statement under oath
to the Assessor of the property owned by
him on the first Monday in March. In
effect, therefore, each citizen is a trustee.
charged to make return to the Assessor
OF the amount of property he has which
IS taxable, and to see that it is assessed as
the Constitution has determined 1t shall
be, to wit: At full cash value. Each tax
payer is, or ought to be concerned. that
the county pays its just proportion Of the
taxes. Each time he permits his prop
erty to be assessed at less than its value
he is guilty of defrauding the citizens Of
the other counties, whose necessities COM
pei fair assessment.
The machinery to effect correct valu-
alton Of property is ample. If a county
lis assessed at less than its value each citi-
zen is responsible therefor. He takes
part in the election of the Assessor and
he helps to form that public opinion
which either incites the Assessor to value
property at its true standard or upholds
him in his dereliction of duty.
The Board of Supervisors are elected
with the purpose, as constitutionally eX-
pressed, to raise or lower individual as
sessments, SO as to bring property to it's
true standard in money.
When, therefore, the citizens fail to in
~,
ment between the rich and the poor, and
when the Supervisors sit idly by and fail
to exercise the powers so clearly theirs,
and compel action by this board in justice
to other counties, where do the grounds
for complaint lie?
After an inspection Of the assessment
rolls of the counties and the collection of
large amount of data, we came to the
conclusion that i'll certain counties the
property had not been assessed according
TO the proper standard. Many instances
of unequal assessments and under valua-
tion in individual cases were brought to
the knowledge Of the board, but this
board being powerless to take any action
towards equalizing individual assess
ments, in some instances called the at
tention of the Boards of Supervisors to
such cases, but without effect.
The increase of the State Board of val
uation by equalization had the effect of
reducing the State rate in 1891 from As
cents and s mills the rate it would have
been had no action been taken by the
board) to A cents and mills-a decrease
of cents and mills.
For 1892 the Board reduced the rate to
% cents and mills.
The duties of the State Board are such
as to excite the antagonism of some OF
the property-holders in those counties
where the delinquencies of Assessors and
DO, ,<~tA =
this board. Our action in increasing the
assessments of certain counties, and not
ably the City and County of San Fran
cisco, has been unjustly, and we may say
maliciously, criticised. Our methods for
determining values have been assailed
and delared incorrect. What better
method could be devised than that of
taking the valuation declared by parties
TO sales and mortgages and appraisers of
estates, we cannot conceive. We were
not guided solely by these indications:
they were only elements to aid our per-
sonal observation and careful inyestiga-
ton.
There is one means of ascertaining
whether property is assessed at it's true
value, which we recommend to the con-
sideration of the Legislature, and that is
to provide that the consideration or
amount of the purchase price should be
named in the body of the conveyance.
An affidavit of the truth of the statement
might be appended to each deed, and
some penalty should be provided for the
neglect OF the parties to state the true con-
sideration. We do not consider that even
this would be sure guide to value. and
in judging the value of an assessment the
sum named in deed would not be inclu-
sive, but it would be a great improve
ment on the present system. AS this
board has to determine, within a limited
loth
assessed at its true value. the Legislature
should furnish, as far as it can, the neces-
Sary means for such investigation.
Several of the institutions supported
by the State, notably the State Uniyer-
slty, loan money, secured by mortgage,
upon real estate. The State University
fund was created by an Act of the Legis-
lature, approved February IA, 1887. Be-
fore that time appropriations were made
by the Legislature for the needs of the
different departments of the University.
but the Legislature at that time con-
cluded to change that policy by proyid-
ing a tax of one cent on each SI0O of
valuation in the State, and 10 place the
money arising therefrom into this fund.
TO be under the control of the Regents of
the University and to be used by them
Tor the support and permanent improve
ment of that institution.
The valuation of the property upon
WHICH IulS AZ NdlOrem TAX was placed for
the thirty-ninth fiscal year was $3.50. 49,
$50, and it has increased until, the present
year, it amounts to 81 ,2T5, So, $40, showing
an increase Of valuation of over $500 600. :
Geo.
With the needs of the university, or the
application of their different funds, we.
as a board, have nothing to do but sug-
gest that the accommodations over and
above the expenses of the institution, be
so used as not TO injure any particular
portion of the State by Withdrawing a
large amount of property from taxation
The returns of the County Auditors to
the board show that there is about three
quarters of a million dollars worth of
property thus Withdrawn from taxation,
and should consolidation OF Il large
amount be made III county road dis
trict or school district, such a withdrawal
would virtually cripple or ruin it.
The loaning of money by state inStitu-
tions places the State in competition with
the business OF banks, disturbs the rev.
enue SYSTEM of the State and the various
counties, and introduces an inequality
between the counties in respect to the
burden Of taxation.
A TRUCKEB TOUGH.