Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1892-11-17
TAX REFORM DEPARTMENT.
TAXATION AS IT SHOULD Be-


BY Prof r. T. Ely. late of Johns Hopkins
u University, Now OF Chicago.
Other forms of wealth, which we call
personal, have increased very rapidly
during the past fifty years, but real
estate constitutes so considerable por-
ton of all property that it is out of
question to think of framing a tax sys-
tenn without making the land tax the
basis of it all The farmer must re-
member that his real estate alone is not
involved, but also city real estate, which
is increasing in value with such enorm-
Gus rapidity, and making so many rich
without labor.
Apart from this, land is visible, easily
valued, and permanent in its location,
and these qualities render it specially
suitable for taxation. The following
reasons have also been given for tax
on real estate, more particularly on
land Land derives an increased value
from public security and from public
works. and taxes are expended chiefly
for these two purposes This is so true
with reference to public improvements
that many of our growing cities have
become embarrassed by expenditures
made at the solicitation of land owners,
particularly on occasion of ''booms,"
and not, as popularity imagined, by the
moneyless rabble. An instance recently
occurred in Buffalo, where large ex-
penditures were forced upon the people
by real estate owners, and against the
protest of at least some of the working
men. A second reason is that the tax
may be considered as a return to the
community for the rights which it has
surrendered in what was once common
property.
All assessors should be by law especial
ly directed to assess to the last dollar
of its true value all real estate held for
speculative purposes There is a COM
mon and Ubiquitous practice, which /
observed everywhere in my investiga-
ton, of undertaking land for rise,
and not used at all. or used only for
some unnatural purpose. as when city
lots are used as cow pastures. Such
land is occasionally actually valued as
farm land. Thus men, without stroke
of work, and even while obstructing
the natural growth Of cities, see their
property steadily increase in value, and
this is solely due to the industry and
thrift of their fellows. An aggravating
case of this sort was reported to me as
existing in Cleveland, and I was told
that the assessed value of land was in
creased in Savannah, Georgia, the mo-
ment it was improved. Much of the
property in that city appears to be as
sessed at sixty per cent of its actual
selling value, but unimproved property
is assessed for smaller relative amount,
and thus premium put on speculation.
One gentleman told me that four lots
which had been recently sold Tor 81. 200
were assessed for only 81, 100, and that
lot next to one he had improved was
assessed for only 81, 800, whereas it
could not be bought for less than s., 500.
This gentleman had bought lot for
5000 of the city. It's valuation for tax
alton was shortly increased to $1,000,
and as soon as ne put up house on it the
valuation of the lot was raised to 81, 900.
Such practices appear to discourage inn
provements, and instances are reported
where farmers would improve farms
and houses were it not that they fear
an increased assessment. Taxation
should be so administered as not to APP
pear to be penalty for improvements
and encouragement to the enterprise.
To exempt improvements from taxation
for a period of three years is not with
out precedent, and an exemption for a
period of two or three years, say until
the third tax levy from the beginning
of the improvement. is measure to be
decidedly recommended