Omaha daily bee., 1906-04-08
TRUE BASIS FOR TAXATION
How City Real Estate Is Valued for
Assessment Purposes,
FACTORS That tNTERNro CONSIDERATION
selling Price and Observation-Disclosures
Mainly Govern, hut other Ele-
ments Have weight with
the Assessor.

Eternal vigilance is the price of en- APP
proach to equity in assessment of realty.
and perfection is hard to obtain. at any
cost, so many things enter for considera-
ton and have their influence upon judg-
ment SIX
Much Improvement however. has resulted
in the assessment Of city property since
the establishment OF special city assess
ing official (tax commissioner in 1898, who
by charter was given power to revise and
edualize the work OF his deputies as a sub
stitute for the system of district assessors
under the old revenue law. The weak
point in the old system was the lack of con-
sistency in the work OF the assessors in
the various districts The office being elect
i've. tendency to undervalue property and
please constituents. prevailed more or less.
until at length in place Of full values be-
ing assessed as the law Fequired a fifth to
an eighth was the rule and not the excep-
ton. .r rvt
The Omaha charter, since 1897 and until
| 1905. provided that the tax commissioner
appoint his own deputies. and this enabled
him to obtain the assistance OF men IA
miliar with values both in lands and in
| buildings, and, having to devote his whole
| time to duties OF his ONCE, he was en-
abled to systematize and bring about Inn
provements In results.
To Fred ]. Sackstt, the first city tax
commissioner. much credit is due for this,
and the benefits OF having a chief or super
vising assessing officer has been recoS-
nized by the state legislators and the fea-
ture has been Incorporated in the new rev.
| enue law of 1904 for the entire state. So
much value and dependence is placed upon
| ba Of
ing assessing officer for Douglas county.
coupled with the consideration of possible
economy and the avoidance OF the annoy
ance Of separate assessments, that the city
has abolished the city assessing office alto
gether.
Fixing the value of Land.
| In arriving at values of realty for as
sessment purposes many things enter into
consideration, and no one thing, even the
selling price, can always equitably make
the proper figure, strange as # may seem
at first glance. A seller may be under
such circumstances as to virtually be COM
PEELED to sell at less than actual worth,
or may be fortunate enough to get adj
vantage OF an unusually good offer because
OF some particular need of the purchaser.
A real estate dealer seldom for himself
Intentionally purchases at what he thinks
|
| that in a comparatively short time he sells
at material advance. In many cases,
| therefore, to assess at the actual figure
| bought at would not be equitable; the aver
age price obtained during the year, how
ever, would be a good criterion for the pur-
/ pose OF assessment.
| The net revenue producing powers OF Inn
proved property, or what vacant property
would produce IL, suitable to the location
and use. building was put on Il, would
be guide to value always provided, too,
that too much land is not absorbed or
wasted. Costly permanent buildings have
been erected in the wrong location, con-
sidering the nature of the building and use,
and have been sold a few years after at a
| third to a fourth OF first cost. In such
cases cost has little to do with a value
or assessment. but the revenue powers
would be the big factor and govern.
work in Assessors once.
The advantage of the chief assessor being
employed the year round in place of sixty
days is the opportunity it gives him to get
and gather information that the limited
period does not admit of. Assessments
under the old plan were largely copies OF
| the preceding year. He has time to follow
| the current sales, learn from buyer or
seller the true price under which it was
sold, compare with the assessments on tho
property. provide for correction OF the
same. equalize property adjoining If neces-
sary, and thus keep the assessment roll
up to date.
The city assessing ONCE since its incep-
tion has had deputy familiar with build
Ing values, who obtains from the building
inspectors ONCE a list OF the permits
taken out and who has examined every
| hnfl all
report on each and incorporated It into the
following assessment The department has
had the benefit also OF one or moro ex-
perienced real estate experts. which has
been quite help In placing values. There
are over LOO plats showing the location
and nature OF the improvements, and the
improvements are assessed separately from
the land and the land part must be equit-
able with the vacant land values near 1t.
Contrary to the belief OF some no distinc-
ton is made between resident and nom
resident owners in the matter OF assessing.
While there is yet room for great improve
ment 1t is allowed that great Improvement
has been effected In the last few years
and that the total assessment OF realty
is not far from the total real value. With
possibly 100000 to 100000 worth Of new
buildings incorporated into the totals the
last eight years the realty total assess
| ment for 1906 was little over 81, 900, 600 as
against nearly ssO,OOO.OOO in 1Ss7-9s and in
the face OF growth In value OF land and
lots steadily since the exposition in 1885
Eject of Present Growth.
With the present upward tendency OF
realty in the city the present provision OF
a four-year assessment OF real estate will
leave assessments below the real value,
with some exceptions, Of course, in certain
districts not having transportation facili-
| ties.
Taxation rates in the city OF Omaha on
realty compares very favoraby with other
cities Of it's class, the average rate for
city purposes for the last FIVE years has
been under 81 on $1,000. with properly at
full value. This should lot repel investors,
as with few exceptions prices are not con-
sidered inflated. and they have a long time
to grow before they approach cities OF sim
liar class. WILLIAM FLEMING.
|
smith Would Succeed AIEeF.
WASHINGTON, April 7-William Alden
Smith. representing the Ninth Miehi-
gan congressional district announced his