Evening star., 1916-08-10

assessed valuation to the true valuation
varies greatly, and what is apparently a
high rate of taxation may be owing not
to an excessive levy, but to the low value
placed upon the property assessed. re-
quiring the rate to be correspondingly
high in order to yield the desired revenue.
1t would seem. therefore, that the tax
ntiOn per capita represents more nearly
the relative burdens imposed by the tax
levy"
Mr.. Johnsons table. using the tax rates
in forty cities as standards of measur-
ing comparative tax burdens, after
the rates have been modified by the APP
plication to them OF the reported rela-
ton of assessed to true value. was vigor-
Washington before the joint congressional
committee, and that committee decided
in favor of the per capita tax >and
against the per capita rate. modified
of measuring the comparative tax bur-
dens Of cities
The committee used as its own stand
ard of measuring comparative tax bur
dens the per capita total property taxes
in the respective cities.
A False Standard of Measurement.
The method of measuring the COM
parative tax burdens of cities which ac-
cepts as accurate the census reported
relations of assessed to true value,
and on this assumption declares that
the Washingtonian's tax burden is
much lighter than that of the resi-
dents of the average American city, is
based on a false premise and leads to
"a false conclusion.
% 1t IS discredited as unreliable by
the census authorities themselves -.
1t is true that some figures of this
IL
themselves under the head of "aver-
age rate of general property tax for
city purposes-per $1,000 OF estimated
true valuation" While the census
authorities print for wnat they are
worth these estimates they also print
explanatory statements which show the
unreiiability of the figures as a stand
ard of measuring comparative tax bur-
dcns.
In addition to the actual figures of
tax rate-assessment and tax Ievies the
census of recent years has, it is ex-
planned, collected the opinions and esti-
mates of municipal officials as to the
relation Of assessed to true value. Par
bureau to the fact that these ratios of
assessed to true valuation represent noth-
ing more than the beliefs or guesses of
local municipal officials.
They are not verified by any inde-
pc ndent inquiries by the census agents.
hut are merely recorded and published
for what they are worth, with warn
ing to the reader not to place too much
reliance upon them. They are not,
therefore. in the same category with
the statistics relating to assessments.
tax levies. receipts from the several
forms of taxation, expenditures, in
debtedness. etc. all of which are exact
figures. obtained from municipal rec
ords by trained census agents. who
make annual visits to I'll cities of over
80. 900 inhabitants for the purpose OF
collecting these data. Ihe compilations
made from them are carefully checked
and verified, and aregtven to the public
as trustworthy statistics. containing no
element of guesswork. The distinction
mated ratios of assessed to true valu-
alton should, therefore, be kept con-
stantly in mind
these reports of the relation of assessed
to true value were very generally in
accurate and misleading, and that false
conclusions would often be derived
from them. And the census authorities
said so, warning against feHance upon
Census Bulletin 1875 Gs13) says:
"Reported basis of assessment in
nractice-For most cities the figures
shown in the table as the reported ba-
sis of assessment in practice are esti-
mates furnished by local officials of the
nercentage which the assessed valua-
tion of property subject to the general
property tax In those cltles iorms OF its
frue value. For certain of the cities of
Minnesota, Washington and Wisconsin
the figures given were obtained from
the state tax commissions and repre-
sent approximately the proportion that
the assessed valuation bears to the sell
ing value, having been determined by a
critical investigation Involving COM
ma rison between the assessed valua-
tions Of property. sold and the consid-
erations received at such sales. The
, faures for both real and personal prop
erty for most cities outside of these
three states are far from correct. al
though those for some cities are more
accurate than for others. and those for
real property are more trustworthy
than those for personal.
sTax rates-The rates of levy given
| for the general property tax are those
per $1,000 Of assessed valuation and per
| 81 900 of reported true value. The
rates based ON the reported true value
are subject to all the errors in the es-
| Inmates to which attention was called
| In the preceding paragraph.
IA M ~ 4 ~