The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-11-26

information to determine this is OBJ
tanned from buyer. seller, notary pub
lie, or other persons connected with
the deal, frequently ccrroborated
through local officials. the income tax
returns. and otherwise. 1t is not
claimed the system is perfect. no hui
man system is, but it is free from
local and personal bias. It operates
from the standpoint of cold and keen
bargaining, and the constantly con-
trolling factor is self interest. None
other When a person entertains the
notion of buying a piece of property
ne ponders what it is worth and tries
to get it for that. He may or he may
not. the other fellow has also some
thing to say about that. It becomes a
matter of bargaining. We had 1911
of them in the last sale period. cover
ing every part of the county. The
judgment of 1892 people was called
into play-3911 buyers, and an equal
number Of vendors-in valuing these
3911 pieces of property at $14,49S,776,
having only their self interest to con-
slider. How can these properties in
the aggregate be worth more, or worth
less. than these people were willing to
buy or sell them at? 1t may be point
ed out that some sold for more than
they were worth. Let it be granted.
To offset that there were also bar
contemporaries that could have sold
for more-and there are always more
of them because there are normally
more people willing and trying to sell
than there are folks ready and able
to buy. Remember that.
Merely Arithmetic.
The valuation arrived at by the
sales method is nothing but piece of
arithmetic giving but one answer.
Arithmetic is no respecter of persons.
The answer you would get is the same
as have obtained. The only answer
to be gotten from this systematic
five-year sales method--produced by
arithmetic is before you. 1t indicates
the true value of the real estate in
the county to be $67.532,189 which is
II per cent of the taxable property.
County Equalization: Why Necessary.
The county raises money each year
for its own support and is also called
upon to contribute certain funds to
the state government. The county
raises this tax by charge against
each of the loca! districts within the
county. The distribution is made ac-
cording to the value of the property
comprising each district. The assessed
value is not the basis of apportioning
the state and county to the local dis
tricts. If the assessed valuations
are used the district with the lowest
valuation would pay the lowest state
and county tax, This would put a pre-
MUM on low, and therefore unfair,
assessments. Even if all assessors,
however, were trying to assess prop
erty at full value it would still be
necessary to have county equaliza-
ton. Different persons have different
ideas as to the value of property. With
a large number of assessors valuing
property within the county, somewhat
different standards of value are sure
to be used. The county board must
harmonic these differences before it
can properly apportion the taxes. The
board, therefore, disregard the as
sessed values and applying the same
standard to each district, makes its
own valuation and apportions the tax
es on this basis.
County Equalization: Sales Method.
The full value of real estate is OBJ
tanned by what is known as the sales
method. This method is fair, but
often is not fully understood. Sales
are used in determining the true value
of real estate, but
No attention is paid to the average
selling price per acre.
Sales between relatives are not
used.
Trades are not used.
Forced sales are not used.
Abnormal sales are not used.
Sales on uncertain land contracts
are not used.
Normal cash sales are used in this
way:
All sales are carefully investigated.
All sales which are not good, nor
NAL sales are thrown out.
The assessment for each normal
sale is found for the year Of the sale.
Sales Method Pure Arithmetic.
When a person contemplates buying
property he ponders over what it is
worth and tries to get it for that sum.
He may or may not get it. The other
party has also something to say about
it. It becomes matter of bargain
ing. Some of the properties may have
been sold for more than they were
worth. To Offset that there were also
bargain properties that could have
sold for more-and there are always
more of them because normally more
persons are willing to sell than folk
ready and able to buy. Valuation ar
rived at by the sales method is moth
ing but a piece of arithmetic.
Some entertain the idea that low
value local assessment in some ways
helps when it comes to the state and
county part of the taxes. BY the
sales method it makes no difference,
as far as this part of the tax is con-
cerned, what percentage the local as
sessment is based on. 1t is a matter
of arithmetic which gives but one
answer under all conditions of local
assessments. 1t is equally true that
nothing is lost along this line If the
local assessment should run above the
five-year value. The sales method
takes care of it in either case and
brings it to 100 per cent. Lower or
raise it to any point you please, the
resulting ratio when applied to the
local assessment always brings the
same answer. The system has no soul,
no sentiment to sway it. Neither the
tax commission nor any other body
arhitra.ilr fYas the total trnn valI1a.