The Washington herald., 1914-03-04
|STAIESIN FAVOR
OF REALTY BILL
Commissioners Send Senate
District Body Data on
True Consideration.
MANY REPORTS QUOTED
Taking Of Testimony Regarding Ratio
of Assessed to Actual Value
Could Be Omitted.

1 senate District Committee, dctailed
statement giving data showing the stand
taken by a large number Of States toward
| this bill and recommending its passage.
All the States mentioned in the Com
missioners' statement are strongly In
favor OF a true consideration bill" The
elimination of the placing Of fictitious
values in transfers OF property and the
saving that would result to the State
authorities because the taking Of testi-
\ mony for finding the ratio OF assessed
! to actual value would become unneces-
\ sary, are among the chief reasons cited
In favor of the legislation proposed for
| the District. The true consideration
| bill Is opposed by real estate men of the
is planning an active campaign to defeat
it.
Reports Are Favorable.
I The Commissioners letter TO Chairman
Smith follows:
The Commissioners of the District Of
| Columbia beg leave to transmit herein
a supplemental report recommending the
passage of ii. r. asf2, upon which they
| made a report to your committee on
February H.
Since making their original report the
Commissioners have had called to their
attention the special report on taxation
recently issued by the Bureau OF Cor
porations of the Department Of Com
merce. In the bureaus report the Com
missioners find information bearing on
the bill in question Oh. r. ssi2), providing
for the recital OF the true consideration
in deeds. The Commissioners desire to
invite the attention OF the committee to
the following excerpts from the reports
of tax commissions of various States
recommending legislation to require that
the true consideration be given. .
Aid to Assessors.
"Arizona-1nasmuch as the actual
money consideration involved in a transfer
OF property is one OF the best evidences of
value, the commission urgently requests
the enactment of a law compelling the
true consideration to be set forth In all
deeds, contWcts. and bills OF sale. This
will be of material assistance to the as
SCISSORS. as well as to the county boards
of equalization. and no valid objection
can be brought against IT.
"Colora rado-'The practice of placing hc-
titious values in transfers Of property Is
bad, viewed from any standpoint, but
more especially from that of taxation.
The chief purpose OF fictitious considera-
tions is to avoid taxation and to enable
spectators to kite values. In many
transfers the true consideration Is stated,
but the commission recommends a Law
requiring the proof and record OF true
consideration in all transfers, backed by
a penalty sufficient to enforce the same
"Michigan-Tf each instrument convey
ing any interest in real estate we're to
contain the actual consideration therefor,
1t would be a great assistance in ar
irving at the true cash value of prop
erty in the vicinity OF the property so
conveyed. The board, therefore, recon-
dg n nv nnn aF1CA nf anu
interest in real estate shall be received
for record there shall be aetached there
to an affidavit of the grantor giving the
actual consideration for the transfer of
the property therein described
North Dakot The gathering of in
formation relating to sales OF real prop
erty could. We believe. be greatly factl-
itated by statutory provisions requiring
confidential Information to be furnished
to the tax commission at the time the
instruments are recorded. A bill making
provision for such will be prepared by
the tax commission and presented to
the legislature for consideration
Views of Tax Commissioner.
IN addition to giving the foregoing
excerpts from the reports of tax commits
sicns the report OF the Bureau OF Cor
porations contains the following state
ments pertaining to recommendations of
New York-hecommends the passage
of a law requiring that the actual con-
sideration in any conveyance of real prop
erty be disclosed to the local assessors,
either at or before the time Of recording.
If necessary the assessor may be re-
qaired to keep secret the amount OF such
consideration, II 1t Is not disclosed by
the conveyance itself.
"Utah-Recommends the enactment Of
Iax. IL Ska@ H. ar,rA ufd dara al
ton for each transfer of real or personal
property be stated in the deed or other
instrument Of conveyance. or that, inl
lieu thereof. a requirement be made that
before any such instrument be entitled
to record there shall be presented with
1t the affidavit of the grantor and grantee
with respect to the true consideration
for the transfer. and II all or any portion
of the consideration Is other real estate,
or personal property other than money
or evidences of Indebtedness, then stating
the best judgment OF affants as TO the
market value of such property. Such
afidavits should be transmitted to tbel
State board Of equalization and kept as al
part of its secret files.
"'virginia-Recommen that every !
person recording the transfer of real |
property be required to nle with the |
clerk Of the court a sworn statement |
showing the actual value consideration |
involved In the transfer
NEUTRALITY-SUSPICIOUS. to legislature |
g bill requiring a statement OF true |
to be filed with every |
transfer of real property before such |
transfer is admitted to record. 1t is
believed such a law will save annually |
a great deal of money to the State be- |
cause no testimony would have to be
taken in the different counties of the !
State for the purpose of finding the |
ratio of assessed to actual value"