Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-06-27


payers are shareholders in great
Public enterprise - their city - in
which they have a right to demand an
honest management. There is no
longer any doubt that waste defraads
them of that right as we'll as graft,
and extravaganza as much as theft.
Therefore, before We can obtain the
expected enhancement in realty val
ties. due to the Investment of revenue
in civic hetterments, the cost of pub
lie service must be kept within the
bounds or standard business economy.
In this connection, we citizens OF this
can well afford to make
ccm parsons between, what happens IN
cur public improvements and what
ought to happen -> .. - -
In every growing city, where out
lays for improvements. have been eco
.nomically made. land yaines are stead
lily rising; en- Increase in the tax rate
therefore, If il be slight and gradual,
is more than likely to be offset, OF
more than object, by, the increase in
land value. SO THAT the ) cwner att r
paying the increased tax. stu has an
.undiminished net return from his land
and hence has not suffered any dimin-
uaticn in his selling price. IL is true,
Of course. that every increase ID ahe
tax rate viii deprive him OF what
would otherwise be profit, but on the
other hand, the value of his land Is
due to the presence and enterprise OF
the population and their efficient mu-
nicilal expenditures. 1t is here again
that the factor of economical handling
OF the public funds becomes an i'm
pcrtant one. 81
Quotes From W. A. Somers.
Since the main item Of local taxa
ton rests on real estate and must rest
there, and since the assessment
real estate is hpcoming more and more
a direct municipal question. y
portance Of imprcV3d assessment
nrethcdss increases. Despite the very
general feeling that assessment is
matter of guess work, we know that II
can be made precise. scientific and
accurate.
The most important element OF tax
aticn of real estate is its valuation.
When wa realize that the value OF
anything, even the most common ar
ticle, is only an individual opinion, and
that the only guide to community
opinion as to the value. of these COM
mon things is market price, and that
city land is not subject to market
price, we have discovered the cause CT,
the difficulty in obtaining satisfactory
assessor ents of city land.
Realizing that exception may be
taken to the statement that city land
is not subject to market prices. |
shall quote from an article on "Falua-
ton of Real Estate" published in the
National Municipal Review, April,
1913, and written by w A. Somers, the
author of "Somers' System Of Land
Valuations"
Market prices can only exist for
exact duplicates There can be no
market price for any one thing which
cannot be duplicated. The market
price OF wheat is fixed by the Eushel;
of coal by the ton; and the prices are
based on uniformity of quality so that
each ton or bushel is exactly like 2V-
cry other ton or bushel.
IA city lot cannot be duplicated. 1T
is a certain definite portion Of the
earth's surface; and while there may
be other lots similar in size and shape,
they occupy different parts OF the
earth's surface, and as the predomin-
ant value of city land is its useful
ness as a site or location. The fact that
several lots may be OF the same SiZ3!
and shape is no indication that they
are Of the same value. Therefore there!
can never be a market price for city
lots except to 4 very limited degree.
such as the case Of SubdividiGg an I'M
developed farm into city lots Of uni
form size. They may be offered in
the first sale at a uniform price, but
this uniformity Immediately di5ap-
pears with the first transfer of the
property.
The fact that market prices are an
OF community opinion of
the value Of all things used by man
that can be moved from place TO place
in fact all things except the surface
CT the earth, land-has caused an i'm
preston that the value of city land
can be determined from prices as
shown by sales. The faliacy of this