Evening star., 1921-09-01
WILL NOT ASSESS
F. ON PRESENT PRICES
Recent Property Costs De-
cIared Not to Represent
Real Value.
MEDIUM WILL BE STRUCK
Assessor Richards Sees Gradual
MEDIUM WILL BE STRUCK
Assessor Richards Sees Gradual
Return of Washington Real
Estate to Pre-War Levels.


for the ensuing two years will not be
based on the present high selling
prices of property, Assessor William
P. Richards told the Commissioners in
his annual report today.
The assessor explained in the report
that the figures at which homes have
been selling for the past few years
and at which they are now selling do
not represent the real value for as
sesSment or tax purposes.
Returning to Normal.
While real estate prices may not re-
turn to the pre-war level for many
years, Mr.. Richards went on, it al
ready is apparent that they will go
down gradually and for this reason
the new assessments have been placed
at a figure somewhere between pre-
war prices and the peak of recent
prices.
The actual amount of the new as
sessment. both on real estate and per-
Richards report, but was not made
public by the Commissioners for the
reason that they are the figures on
which the estimates for rext years
appropriation bill were based.
Subject to Many Changes.
Explaining his theory of not basing
assessments on abnormal peak prices,
the assessor said:
"value of real estate, like other
property values. are in a constant
state Of fiux. They change in many
ways. Buildings are in A constant
state Of deterioration. they may lose
value by becoming obsolete or un-
suitable to the site. Land values are
likewise changing by sections. either
receding or increasing, according to
the shift of population or the sud-
den popularity of certain newly de-
veloped places. Taking the land val
ues in their entirety over a period of
several years, there is a constant in
crement proportionate to the increase
in population. The most difficult ques-
tion. and one that is open to a variety
of opinions. is the handling of assess
ments or valuations bearing solely on
improvements. In 1916. and for sew.
eral years previous to that production
and trade were regarded as normal
and there was unrestricted competi-
tion in all lines, which made it a COM
paratively simple matter to measure
the value of any kind of real estate.
The advent of the war changed all
this and today nearly every city in
the country has a population in excess
of fair accommodations. which, to-
Rether with the abnormal or extreme
~ high price of material and labor,
have put premium on all improved
pieces of property. These unusual
conditions have more effect on the
Improvement than on The ground val
ues.
Production Cost High.
THE cost of production today is far
above what it was in 1915 and 1916.
buildings are based on 1915 produc-
ton, as the yearly additions to the
tax list have been made with a view
to equalizing the new properties with
the old. It will probably be many
years before. values recede to their old
position of 1915 and in the minds of
some a return to normal conditions
will not bring return to pre-war
prices. This assessment has been
made during the peak of high prices,
for it so happens that sales are be-
ginning to fall OFF and prices in GER
decided drop. Nevertheless. these
prices will drop gradually and their
existence must be recognized during
the next two years in our tax list
Sales ext ending over the last eighteen
months, and totaling many millions OF
dollars, have been above the old basis
of assessment. These high prices are
not in the ground. but are due almost
solely to the high cost of production
and iack of sufficient improvements.
at is patent to any one who handles
real estate that the present value OF
tion, is not the measure of value of
property even II depreciation be taken
Into account. The value OF any prop
erty today must in a measure depend
on its future use or the return we
might expect from it extending over
a number of years. However. it is
dificult to Judge what this may be,
as no one can nredict with any crr-
tainty when labor and material will
drop in price and whether prices will
1N IL tn tanf oil
nre-war values. All of this is mat
ter of Judgment, but we cannot ig-
more what is going on in tn" COM
mercial world, for we have had an
extremely active market that has
number of sales that cannot be cast
aside This new assessment will 90
main on the books until July 1. 1928.
and it seems the part of discretion
for the board to discount some OF the
q reasonable certainty that there will
be a considerable falling in values in
the next few years.
Assessment Figures.
Increases in the total real estate as
aeesment due to new buildings, i'm
nroyements to old structures and ex-
tension of public service conduits are
given in the report as follows:
The assessment of new buildings
.meunts to S7.6s1.s75. and additions
and improvements to old buildings
taggregate $1,822.700, which together
with new gas mains, conduits. rail-
way. etc, assessed for $445,S38, make
q total of $9,950.513.
Prom this last total IL to be taken
amounts for property removed or de-
stroyed, $197,200. leaving $s,753.313,
and from this last amount the sum
Of $414, 900 for property exempt, ieav-
ling az a net assessment, ttaxable).