The San Francisco call., 1910-07-16
BUILDINGS MAY BE
ASSESSED ON COST
Supervisor Nelson Proposes to
Abandon Earning Capacity
as Tax Basis

The supervisors considered yesterday
a proposal by Nelson to tax the city s
largest and handsomest structures,
built for the years to come not in
proportion TO their earning capacity but
on their original cost Next Monday
morning the supervisors. sitting as a
board of equalization, viii hear the
explanations of the property owners
as to why they should not be taxed for
their enterprise in building for the
future instead of the immediate
present.
1t is pointed out by Assessor Dodge
that this inquiry will furnish the state
board Of equalization with ammunition
next month, when it may try to force
up San Francisco's tax rate another
notch.
MEETS OPPOSITION
Nelson's proposal did not pass with
out opposition Supervisor Murdoch
objected to bringing up the question
at this late hour for snap Judgment
Assessor Dodge said that even the
state equalizers were satisfied with his
valuations of the buildings mentioned.
The board must consider he said.
that these buildings were, as a class,
put up or reconstructed directly after
the fire, when materials and labor were
much higher than at present. They
are not filled, and rents are low. Some,
] found, pay as low as one-half of 1
per cent on the total Investment. Most.
at the present time, do not go over 9.
Following the precedent set by the
supervisors in regard to real estate in
the burned district. l have taxed these
buildings in regard to their earning
capacity. This is the modern princi-
pie of taxation such as is followed in
New York. Real estate has its steady
value, but the building may suffer from
poor location, ruinous competition or
other causes and be actually worth
much less than its cost
PHELAN BUILDING FIRST
The building with which Supervisor
Nelson headed the list was the Phelan
building. On the assessors books IFS
land is taxed for $1.250,000 and the
building for 100000. The next was the
First national bank, in which Rudolph
SpreckeIs in interested. Its land is
assessed for S37s, $50 and building at
s525 900. Roos Brothers building was
another II is owned by Francis ]
Sullivan and pays taxes on $644, 900 for
land and $4,000 for the building The
Chronicle, with the lot at $3.50 900 and
building at 100000, and the Claus
Spreckels building, with the lot at
$235 600 and building at S400, 600, also
were on the list. Another large one
was the White House, belonging to
Mrs Francis J. sullivan, whose land is
down for $4,000 and building for
$3.50. 900.
On the suggestion of Dodge that
other buildings on the list in Nelson's
hands might be estimated on the same
basis, Nelson made these additions.
with their respective valuations by
Dodge as TO land and improvements:
Mills building, sST2.560 and ss50.00O.
City Of Paris. x2se2 800 and $l60. .oO0
st. Francis hotel $4SG5. $50 and 81 600. 600
Wbittell building. $4,000 and $4,000.
Alaska ( Commercial S124 600 and S260. 900
Nonadnock building. $45l 800 and $50 600
Humboldt hank. $i5i.24o and $325.Ooo.
Wells Fargo, S225.450 and $3o0, 900.
Balboa $1T4.52O and $4,000.
Flood. 1898, eco aud $T50o 600
Emporium, s93l 900 and $3.50 0o0
Metropolis bank. S1S5, 500 and $1a5, 600
French savings hank. $50, $50 and $40 600
Gunst building mission street,, $50, 600 and
$25 600.
Dodge says that most of these build :
ings were investigated thoroughly last
year by the three experts employed hv
the board of equalization and pro-
nounced fairly valued. The percentage
of value assessed came to 571b.
The owners, who in most cases tried
in vain recently to get reduction
from the assessor, win appear in pro-
test Monday.