The Washington herald., 1922-07-06
Full Value Assessment on
D. C. Real Estate Adds
To Burden.
$5,OOO,00O SURPLUS
is NOT CONSIDERED
Personal Property Reve-
nue. Expected to Gain
$22S,000 Over 1921.

DOrne Dy the residents OF the Dis
trict of Columbia this year, accord
ing to the tax rate figures given out
yesterday by the District Commis-
sioners.
The new tax rate or, real estate
will be $3.50 per 500 OF assessed
valuation. The rate for the year
just passed was s1.S2. The seem
ing cut in the rate is more than
made up for by the change in the
method of assessmSnt.
Last year properly was assessed
at two-thirds OF its value. This
year. by act Of Congress. It will be
assessed at it's full value. The fol-
lowing example will make this
clear:
Example illustrates.
II person OWLS property valued
at s4.500. it will this year be as
sessed at the full value. The tax
rate Is $3.50 Applying this rate
to the assessed value Of $4,000 1,
will be seen that the owner pays
$3.50 tax.
Last year the same property was
assessed at two-thirds of its value.
Two-thirds of s4,5oO is $4,000. APP
plying the s1.S2 tax rate to this as
sessed valuation, II will be seen
that the owner paid $3.50. The in
crease in tax. therefore, on this
property Is $3.50.
An increase in taxes on intangible
personal property was made certain
when Congress Increased the rate
from 3 per cent, which was last
years rate. to per cent for this
year. The increase will net the Dis
trict an amount estimated at $780,
900. The actual increase may be
lower. since II Is tue common exr =
rience the country over that an in
crease in the rate on intangibles re-
suits in a decrease in the intan-
gibles reported by tax payers.
Decrease ON Tangible Property.
A decrease in the taxes on tan
gible personal property is noted un-
der the new rate. This sort of prop
erty has always been assessed at its
full value. and with the rate cut
from s1.S2 to s1.30 will give a cor
responding decrease in the tax paid.
The following example will indicate
this:
An automobile valued at $1,000
will be assessed at $1,000. Under
the S1.S2 rate the owner paid taxes
amounting to $3.50. Under the new
rate of $3.50 the owner will pay
s13 in taxes.
The reduction in the tax receipts
from this source will amount to
SAP, 900, IT is estimated. This cuts
the increase in receipts resulting
from the increased rate on intan-
gible personal property from $67o,-
600 to s22s,oo0.
In estimating the taxes for the
year, the Commissioners have not
considered the possibility OF finding
the expected s5.000.000 to their
credit after the joint Congressional
eating committee has fnfsned
its task, The exact surplus hgure
omitted from the calculations anu
which the Commissioners Will give
their first proof of to Congress TO-
day is set by them at s4,e4s,666.6s.
Total. s24.4ss .4s2.o2.
The total appropriations for the
fiscal year 1929 amounted to s24,-
4sS,4s2.02. OF this amount $l4,6so'-
4so.7s was charged TO the District
in accordance with the 60-40 plan
of division with the national gov
ernment.
To meet this appropriation, the
District raised sl4.S65,9ss.63, leaV-
ing a surplus in the Treasury or
s16s, ,50s.s5 to the credit ofsthe Dis
trict for the year. sss
The total appropriation for 1923.
actual and estimated, amount to
s23.521, ,5ss.so, of which the District
must pay s14,2 S.641.sS. To this
must be added the sum necessary
in accordance with the decision OF
Congress ts put the District on
cash basis
To be put on a cash basis in the
FIVE years set by Congress ana as
suming the payment of taxes In
two installments each year VIII re-
uuire an extra 100000 each year.
according to the Districts figures.
Must Raise si4,s1s,841.ss.
Adding 100000 to the s14,21S.-
641.SS, it will be. seen that the Dis
trict must raise in all this year s14,-
61S,641.8S. The estimated revenue
for the year 1928 from sources other
than, real estate and tangible, per-
sonal property amounts to $780,
50S.S5. This leaves s10.46S,133.03 to
be raised by the new rate of $3.50,
Should the sum approximating
s5,000.000 that II is said rests in
the Treasury to the credit of the
District be so credited by Congress.
1t will reduce the tax rate next
year, IL is believed. 1t will not
affect this years rate since the tax
bills will be out and paid before
Congress reaches a decision.
Conference among Edward F..
Colladay, vice-chafrman of the cit
izens Joint committee on fiscal
relations, and Senator Ball and
other members of the Joint Con-
gressional committee which will
start today to probe the fiscal reia-
tions between the District and the
government was held at the Capt.
tol, yesterday.
Out-of-town members of the
Congressional COMMITTEES have re-
turned here in order to participate
In the conference. although Guy
Hardy. of Colorado. was the only