The midland journal. (Rising Sun, Md.) 1885-1947, 1920-06-11
THE HOUSING PROBLEM.
Five Year Tax Exemption In Wash.
ingtOn County.
Editor of the Midland Journal,
Rising Sun, Md.

ington County.
Editor of the Midland Journal,
Rising Sun, Md.
Dear Sir
The recent Legislature made one
attempt to solve the housing problem
in Maryland by authorizing the
County Commissioners of Washing
ton County and the Mayor and
Council of Hagerstown to grant a
five year exemption from County and
Municipal taxation for all housing
facilities, homes and dwellings erect
ed in Hagerstown (and elsewhere in
Washington County as regards Coun-
ty taxes) on and after the first day
of April, 1920.
The Act provides that such exemp'
tions shall only apply to structures
which do not exceed cost of five
thousand dollars for one family, al
though housing facilities, homes
and dwellings for more than one
family and with more than one
family apartment or suite of rooms
shall be exempted within the mean
ing and purpose of this Act at the
rate of five thousand dollars for
each family, apartment or suite OF
rooms.' There is to be no exemp-
ton of the land upon which such
dwellings shall be erected. And the
above exemptions must be applied
for to be allowed by the appropriate
authorities.
The measure, which went into eff
feet June LIST, constitutes the first
real attempt to stimulate home build
ing. The 1919 tax rate was SO
cents for Washington County and the
municipal rate for Hagerstown was
90 cents. Judging by other sections
each of these rates will exceed one
dollar for 1920. This means that
builders of five thousand dollar
homes in Hagerstown are in effect to
be offered bonus of something over
hundred dollars year for five
years, or a total of some five or six
hundred dollars, provided of course
that the County and local author
tiles avail themselves of the powers
conferred upon them by the leglsla-
ture. For apartment houses the
same offer would be made for each
family apartment, so that at build
ing with twelve apartments assessed
at sixty thousand dollars would re-
ceive an abatement of something like
twelve hundred dollars a year, or a
total allowance of six thousand dol,
lars for the five year period.
This is getting down to brass
lacks on the housing situation. II
the authorities act promptly and the
exemptions are widely advertised,
such an inducement will be worth a
hundred appeals to patriotism and
any amount of journalistic tom-tom
beating about rent-profiteering.
Greater building activity not only
means greater supply of homes, but
further industrial improvement with
increased real estate values.
Elsewhere in Washington County
the exemption would apply as to
County taxes only. The allowance
would amount to about fifty dollars
year on five thousand dollar
house, or total allowance of two
hundred and fifty dollars for the five
year period. A building with twelve
apartments as mentioned above
would receive a total abatement OF
about three thousand dollars.
Other municipalities in Washing
ton County, however, can put them
selves on a par with Hagerstown, or
even go it one better as far as the
above law is concerned, as a public
general law passed in 1916 gives all
incorporated towns in Maryland
excepting Baltimore City, virtual
Home Rule in the matter of iocai
taxation.
Under this Act the town authori-
ties have the power to determine
what classes of property shall be
taxed for local purposes. II their
tax rate is limited by the towns
charter, the Act gives them the pow
err to raise the rate sufficiently to-
cover any loss of revenue in case
they decide to exempt certain classes
of property. A number of towns
have taken advantage of these pro-
visions by either wholly or partly
exempting all buildings and personal
property, and raising their revenues
from site values alone
Such a plan directly encourages
building and business activity gener-
ally by promising immunity from
taxation for all time. Locations be
come more desirable under these
conditions, so that they easily bear
the increased taxes.
Old tax methods actually 6iscorr-
age building and make it easier for
owners to keep their lots idle than to
develop them.
The Washington County nian ia