Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-24
BY THEODORE W. MOVES,

from $13 to 81: per thousand. but
the reasoning and conclusions of
the article nre ms applicable today
as they were a year ago.
In recent House debate Washing
ton was reproached by a speaker
with its low tax rate OF $13 per
thousand, and representatives Of cities
which were paying a rate of $40 per
thousand were called upon to note
with Indignation this alleged under
taxation.
This reproach Is based upon the
theory that a low tax rate means
light taxation and 4 high tax rate
means heavy taxation. and that. since
so many of the states have enacted
laws requiring full assessment valu-
alton. the tax rate applied to these
assessments to produce the actual
tax levy measures with approximate
accuracy the relative tax burdens Of
the various American cities. But
students of taxation know that this
theory is fallncious; that the laws
requiring full or real or true cash
assessment of property for taxation
are very generally disObeyed, that
the degree Of diSobedience varies so
greatly in the states that full valu-
alton means anywhere from 20 per
cent In some states to more than 100
per cent in some great cities in a
state like Ohio. which has limited
the tax rate on realty to $40 per
thousand: that the reports to the
census of the relation of assessed to
true value. with a few notable excep-
tions (Which the census authorities
indicated, vary in widely different de-
Grees from the truth; with the re-
suit that the value of the tax rate
alone or in combination with alleged
full valuation assessments il abso-
iufely destroyed Ms a reliable stand
ard Of measuring relative tax bur-
dens.
False Pretense OF Full Valuation.
The false pretense of full valu-
alton" is widely confessed.
The state tax commission Of Mis-
nesota has said:
Ever since Minnesota became a
statutes requiring that all property
shall be assessed at its true and full
value in money Never since the first
assessor started on his thankless task
has property of any kind In Minnesota
been assessed at its true and full
value or, with few exceptions has
any serious attempt ever been made
No
versal custom has been to assess at,
from % to so per cent OF actual value;
and this custom has had the long
continued approval Of the people, the
silent support of the law-making and,
in large measure, the acquiescence of
the law-enforcing departments Of the
state government"
conference of 1879 Isidore Loeb. pro-
lessor of economies University of
Missouri. reported concerning recent
tax legislation IN that state:
IF The provisions of the law re-
curing all property to be assessed
at it's true value had been observed,
the difficulties would not have been
SO serious. With locally elected as
SCISSORS. however. there were great
differences i'll. the rate Of assessed
classes of property In the same coun-
ty and among the several counties of
the state, with general tendency to
keep the assessments much below the
true value. While certain classes Of
property in a few counties were as
sessed at full value. the average for
all kinds of property throughout the
state was probably less than one
third of the real value" In Missouri
the assessment is at true value"
At the same conference John 3.
Phillips, professor of economies 1ndi-
ana University, reported concerning
tax conditions In Indiana:
THE results of the most recent in
veStigation are shown in table indi-
eating the ratio of assessed to true
ing checked up in thirty-six counties
by experts employed by the special
tax commission Of 1916. According
to the Investigations of these experts
employed by the commission on taxa
ton. who secured the zeal estate
transfers in thirty-siX counties and
compared the assessed valuation with
the true valuation as found by check
ing up each transfer. the average as
sessed value of lands and lots in
these thirty-sx counties was 1913 per
cent OF the true value in 1916. The
counties in which lands and lots were
assessed at the lowest percentage of
true values were Allen (32.O. Car
roll (30.1S. Lagrange f31.39). Lake
st sr sassa Topton o esso4}. 'i n
these thirty-six counties the ratio of
assessed to true value ranges from
22.53 to $40. while the legal ratio is
100"
conditions in multitude of states.
The census bulletins show from the
reports to them of the relation of
assessed to true value that a great
multitude of cities acknowledge that
their assessments are not full valua-
lions in accordance with the rate fix
ed by law. and the census authorities
in effect discredit the reports of such
valuations from the cities which
claim not to underassess. In respect
to thirty-four of the sixty eight cities
over 100000 in population Census
1900, it is admitted in the report of
relation Of assessed to true value
that assessments are less. in many
cases far less, than the legal ratio.
and the census bureau discredits re-
ports of full legal valuations in the
other thirty-four. Local admissions
and all Independent Investigations es-
tablish almost everywhere the false
pretense of full valuation.
Smaller Tax Rate, Larger Tax Burden
To show the fallacy Of the theory
the tax burden necessarily follows
the tax rate, consider Washington's
experience, which is Teproached with
decreased taxation on account Of re-
duction of the tax rate from $3.50
per thousand to S13, when, as a mat
ter of fact, owing to the change in
assessment standard, the large de-
crease in tax rate meant an actual in
crease in tax burden.
In most of the states the tax rate is
merely a percentage figure that must
be applied to the assessment ralua-
ton to bring about the amount of
tax money that the self-taXing COM
munity decides that 1t will spend
upon itself in that particular year.
If 1t i.as valued its property for tax