The Washington herald., 1913-07-13
LOWER TAX ON BUILDINGS.
Redaction Effects General Improve
ment, Says Social Worker.
By ALLEN r. BURNS,

Reduction Effects General Improve
ment, says Social Worker.
By ALLEN T. BURNS,
Secretary Pittsburgh Civic Commission
Exeiusi,e Service The Survey Pres BureauJ
Pittsburgh and Scranton are the first
cities in the United States to cut the
tax rate on buildings radically lower
than the rate on land, following the plan
which has attracted so much attention
In the cities Of Western Canada
For a generation Pittsburgh had suf-
fered from a tax system which put a
premium on holding land for speculative
purposes. The holdings Of old estates
were classed as agricultural land, and
paid only one-half the rate charged
against once buildings and workingmen's 8
homes. The Legislature Of 1911 wiped
out these old inequalities. The Legisla-
ture Of 1913 has turned the situation in
side out to give an advantage to the man
who improves his real estate.
The act will fix the tax rate on all
buildings at on-half the rate on land.
This will work out as follows: To raise
all present city avenues an average rate
of Is mills has been assessed in Pitts
burgh. A tax OF IS mills on land and 8
mills on buildings would raise present
revenues at the present assessed value of
land, which is practically twice that of
buildings. An increase Of mills on land
would raise the same amount as has been
raised by the s mills by which II Is pro-
posed to decrease the rate on buildings.
To permit adjustment of investments
and prevent hardships this change In
rate will be spread over twelve years.
The first year the rate on buildings will
be reduced to 30 per cent of that on land,
hn ~ S1 nd hy
reductions Of 10 per cent every third year
until 80 per cent 10 reached in twelve
years.
The movement gained impulse from the
report Of the British Board Of Trade on
the cost Of living in America, which
showed that workmen in Pittsburgh pay
higher rents than In competing cities-l9
per cent higher than in Philadelphia, A
per cent higher than In Cleveland, and
Is per cent higher than In Baltimore.
Inquiry disclosed that Pittsburgh man.
ufacturers were paying 90 cents to 81 per
square foot per year for floor space.
while space In interior Pennsylvania cities
competing with Pittsburgh can be had
for 20 to 30 cents.
In his economic survey OF Pittsburgh
for 1872 Prof. ]. T. Holdsworth figured
that the average value Of land per acre
In Pittsburgh was 5000. a tribe less than
SNcW xOrk, put HtSucf tudu III any VI tuc
other ten largest cities Of America.
So II was that the Pittsburgh Civic
Commission. the Real Estate Dealers
Association. and the Pittsburgh Board of
Trade Joined in this tax campaign a. the
means which. to their minds. would get
them three things:
Better houses for workingmen at lower
rates.
Relief of manufacturers and other en-
terprises from prohibitive prices for land
needed for building and expansion. Since
this land 10 being held at impossible
prices by Spectators. the development
and growth Of the community Is re-
tarded.
Lower taxes as an inducement for de-
veloping the city and Its business
Charts and tables were prepared show
ing the effect Of the new tax rates on
various kinds OF real estate, and espe-
ciaiiy on the land and buildings Of the
small industries which Pittsburgh IL
especially keen to develop a. subsidiary
to steel
The Thirtssnth ward. which contains