The Washington herald., 1920-09-05
houage Of Rental Properties Here Mau Become Ace as Season Aduance
Problems to Be Aired
In Next Congress; Operators
Think Taxes Are Too High

lower rentals and even costs OF
buildings for sale, despite the high
cost Of building materials and labor
at this time.
The limitations on earnings on
property, due to taxation, is one Of
the reasons for the failure OF many
people to put money in these invest
ments at this time. In fact, many
property owners are attempting to
unload their holdings with. a view
to recovering the money and invest
ing IL where the earning power
would be greater.
The time is ripe for a readjust-
ment of taxes, il is pointed out. a
readiustment which will take some
OF the burdens of the real estate
field, and bring IL down to q point
where it will have to bear in the
neighborhood Of IS per cent Of the
whole! Such a change is the only
relief in sight at this time which
might bring a lowering Of costs.
These are strange and hazardous
times for real estate investments"
one realtOr put it. 'On the one
hand the taxing officials and the
general public are looking TO the
owners of real estate to carry
nearly all of the load Of State and
local taxes; while, on the other
hand, labor. material and all those
services which the operation Of
realN involves is demanding the
highest returns experienced in this
country. And. now comes t~ third
element which complicates the
whole-that the government Of the
United States and the legislatures
of some Of the individual States are
attempting to limit by laws the
natural protection which an owner
haAalways had, naming the ask nj
of the use Of his investment.
III the tax officials are to prac-
tically limit their activities to the
easiest form Of levying assessments
and collecting taxes by a lien upon
, the title to real estate. then it must
be expected that such a use Of zeal
estate as the basis Of raising the
public revenue must. Of necessity,
be reflected in rents, which are
themselves passed from one to an
other until they reach in the price
of commodities or service the con-
sumer. II behooves Very real es-
tate man to study this situation.
This statement does not mean
that real estate men should be mere
complainers about excessive tax
rates or excessive assessments. 1t
means that a well defined program,
indicating to all the tax officers and
the public the proper part that real
estate should play as subject Of
taxes. That program is not 4 pro-
gram of obstruction in the raising
of public funds. 1t is a program Of
educa ton. Of proper Legislation, and
a carefully worked out distribution
of state and local governmental
costs"
This is A program that affects
great many people, in view OF the
fact that more people today own
their homes than ever before. II is
pointed out that II every property
owner would lend a hand the COM
bined force would be felt TO such
an extent that the national and
State legislators would most Ger
tainly give ii a wide open ear.
Property owners in some States
are already forming large assoCia-
tions to present their views. Nota-
BILE among these is New York.
where. fostered by the Real Estate
Association of that State. the prop
erty holders are combining to 50
impress their views on the leEisla-
turet that results will he obtained.
Others are expected to follow in the
footsteps of that State.