The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-22
THE DELINQUENT TAX Sale
How the District Deals With AS
sessments in Arrears.
A Penalty Imposed Upon All Unpaid
Levies on July 1 Each Year-Hard-
ship Resulting to Poor Property

Levies on July 1 Each Year-Hard-
ship Resulting to Poor Property
Owncrs-Prcsent system Criticised
The aggregate value of taxable real
estate and personal property in the Dis
trict of Columbia is sl9l, 100000 The as
sessments are made on the basis of Sl.50
for city and suburban lots and of 81 on
agricultural land. Including interest and
penalties on delinquent taxes, the income
of the District from this source is $3.50,
600, and from licenses and other sources
it is about $4SO0.0OO.
Each year on July l there remains, I'M
paid, a considerable amount of taxes on
real and personal property, as well as spe-
cial assessments for watermains. side
walks, and curbs. These unpaid taxes
thereby become delinquent and a penalty
of 1 per cent a month is imposed. The
law prescribes that the delinquent taxes
of July l in any given year shall be
sold at public auction, after being adver-
tised, in the following month of April.
beginning with the first Monday of the
month.
Last year on July /. there were O,47S
items of tax unpaid. These We're listed
and advertised, in pamphlet form. by the
effort was made in the Assessors Office
last year to collect the unpaid taxes. To
this end bills were sent out to the de-
linquents with the result that before the
sale this month about 1900 of them paid
up in full with interest. During the sale
about 400 more delinquents appeared and
bid in their own property. This left about
$500 items of taxes to be disposed of at
the tax sale which closed last Thursday
The District bid in 1000 of these. and the
remainder went to outside parties
The tax items that are sold annually
are made up as follows:
The original unpaid tax, the penalty of
/ per cent month, and the cost of ad-
vertisiDg-about s. on each item.
The original delinquent tax may be the
regular levy, or a special assessment for
Waterman or sidewalk. In case of the
regular levy the interest is Il per cent a
year on special assessments, which may
be divided into four installments the in
terest is from to 10 per cent year, ac-
cording to the installment
The law prescribes that the person bid
ding in the tax item shall pay it to the
District at once. and the custom is for
the Collector to require a regular pur-
chaser. one who attends the sales each
year. to deposit a sum equal to an esti-
mated amount of taxes to be bought in
If the tax item is sold to an outsider. or
newcomes at the sales the amount be-
comes a lien upon the property, and the
holder of the certificate issued by the
Collector to the purchaser is allowed
10 per cent interest year on the amount
paid. If the District bids in the item, the
original owner may still redeem it by
paying L per cent interest on the full
amount.
In case of purchase by private individ-
ual, if the tax is not paid within two
years the Commissioners are authorized
by law to issue a tax deed against the
property to the purchaser. The business
then passes beyond the control of the
District officials and settlement is mat
ter between the holder of the tax deed
and the owner of the property.
The tax deed is a cloud upon the title
and must be settled before sale of the
property If settled in court, the holder
of the tax deed will be forced to take
his original purchase money and legal in
terest thereon for the time expired since
fer to make settlement out of court, and
1t is at this point, it is said. that the buy
ers of delinquent taxes make their profit
charging bonus for settlement over and
to clear the title of their property, some
persons have paid hundreds of dollars
for the cancellation of a tax certificate
or tax deed, which cost the purchaser in
the beginning only a small sum.
There is one interesting phase of the
subject, which was made manifest at the
recent tax sale, when there was greater
competition than ever before. Not only
was there much bidding between con-
tending purchasers, but some OF the items
were bid very high, from 50 to $4,000 above
the original items of tax and expenses.
This surplus is not paid to the District
until the purchaser takes out tax deed
at the end OF two years. 1t does not be
long to the District. however. but is pass
ed over to the owner of the property.
In case, therefore. the purchaser bid
protect himself at the end of two years
by taking out n tax deed, the owner of
the property will receive This surplus, un-
less the matter is taken into court. 1t is
expected, therefore, that unless the LOCO
or more items Of tax which brought sur
plus at the sale are settled within two
years. the certificates will become void
by default, or settlement will be effected
through the courts.
There has been much discussion of the
subject of delinquent taxes, and the in
terest charges upon them during recent
years. The Board of Trade, the Business
Mems Association, and several of the
citizens associations have placed them
selves on record against the present sys-
I,
recommended a reduction Of interest
charges which the Commissioners ap-
proved and sent to Congress.
Those opposing the present system
argue that the arbitrary imposition of IL
per cent interest on delinquent tax bills
on July each year is an intolerable hard
ship upon the people of the District. 1t
is maintained that this burden falls, not
on the rich, who pay their taxes prompt
~. but upon those whose finan-
cial burdens weigh heavily. The hardship
of L per cent penalty is greatly aggra-
waited when the struggling property own
er falls into the hands of the annual tax
sale Spectator. and the consequent
couding of his title by tax certificate or
tax deed.
In speaking of this matter in his last
annual report. the Assessor expressed
himself as follows:
I'm the course of Il year a great many
eases are presented to this office for the
remission of penalties and interest, where
the equities are so strong as to warrant
relief. Some of these cases are occasioned
by the lack of education on the part of
poor, ignorant persons, and are really
pitiable, but from the lack Of authority
at law to adjust them have to be acted
upon adversely.
Il would suggest that some provision
of law be enacted vesting the Commits
sioners with power to remit penalties and
interest and even cancel taxes where the
equities are strong enough to warrant it.
and thus save the property owner the eX-
pense of court proceeding