Evening star., 1924-06-04
WOULD TAX FARMS
ON YEARLY RETURNS
Government Economist CHticizes
Rasing Rates on Rigid
Capital Value.
PRESENTS MANY STATISTICS
DR.. Gray Says Burden Now Some
times Intolerable.

Factors were laid down for. con-
sideration in fixing the value of farms
by speakers before the farm lands
division of the National Association
of Real Estate Boards meeting this
afternoon in the rose room of the
Washington Hotel. b. +. Faast OF
Eau Claire, Wis, presiding. One
speaker, DIR. L. c. Gray, in charge of
the division of land economies of sle
United States Department of Agricut-
ture, suggested the nsed of revolu-
tionizing the traditionaii system Of tax
alton SO as to base taxation of farm
lands not ON their capital value, but
on the net value from year TO year OF
the farm product.
What economic changes will briRg
back farm prosperity were outlined by
DR.. b. NJ. Anderson, jr.. economist,
Chase National Bank, New York City;
while J. r. Howard. Chicago. former
Fedora tion, spoke on the question:
should IA Young Man Buy Farm in
1922" George II. Payne, omana,
Nebr., told how TO handle pres
pective farm buyer.
Taxes Relatively Higher.
Failure of states and. local COM
munities to readjusr taxes to the con-
ditions brought about by severe post
war depression in agriculture mas
resulted in a tax buEden on farm real
estate that is excessive and well nigh
intolerable, DIR. Gray pointed out
He presented statistics gathered by
the federal government showing that'
partly, at least, as Va result OF the
tardy readjustment ,of the assess,
ments of farm land to the actual
changes in market valuations, tne
average taxes per acre on farm real
estate in all important sections OF the
country were relatively higher IN
proportion to the maket valuation or
such real estate than they had been a.
decade earlier.
Rigidity of tax assessment TOT the
general property tax where that as
sessment is based on capital value
makes that form of assessment or
very Questionable suitability as ap-
piled to the economic CONDITION Whicn
characterizes modern farming ne SAID
The usual argument, ne went on is
that capital ValH, is fairly close
measure of anticipated future income
We are actually taxing farmers on a
speculative estimate of what their
income may be, hessaid.
Cause OfSTroubIe.
A large part of'the present farm
trouble was attributed by +. ).
Stroheker, vice president ana secre-
tary of the Bankers Mortgage Com
pany, Kansas City, Mo, to the fact
that nobody is really capable of
determining in a scientific manner
Just how much farm is worth.
In order to arrive at fair value
of farms" he said. "1 is necessary to
keep clearly in mind that farm valu-
ations must rest upon at least two
bases; the direct income basis which
| have heard some appraisers refer
to as the Workshop value and the
community or neighborhood basis
which has been called the farm home
value. In some nef efghborhoodS the
home value is large, and the capi-
talized value from the income which
the farm produces small. In other
instances, two use a different termin
ology, the necessity value may be
great but the luxurys value little or
nothing. The combination of the two
will give an accurate appraisal, fair
to the buyer as well as to the seller"