Evening star., 1926-04-16
CONGRESS BLAMED
FOR TAX SALE RING
Richards Offers Remedy to
Give Realty Owners Warn.
ing of DeIinquencies.

Blame for the existence of the so.
called tax title ring criticized in the
Senate yesterday by Senator King of
Utah in connection with consideration
Of the District appropriation bill. was
placed squarely on Congress today by
Tax Assessor William p. Richards.
The Senator urged that the tax asses.
sor take every possible precaution to
see that property holders are fully
cognizant Of delinquencies before the
titles are sold.
Mr.. Richards described the present
system under which property Is sold
as a disgrace. and explained that for
some time he has been trying to cor.
rect it by advocating to Congress a
new plan that would afford more pro-
lection to property owners. and at the
same time benefit the District finan-
cially instead of the tax title grab
bers"
Delinquent taxpayers now are given
no warning that their property has
been listed for public sale. The tax
bills are mailed to them and If pay.
ment is overlooked, the property is
listed for sale in a costly book. No
notice is served that the property will
be sold.
Would Give Annual Notices. =
Tax Assessor Richards plan pro
poses a complete system OF notices
that would be sent to all taxpayers as
soon as the tax becomes IN arrears.
The present penalty of imposing per
cent increase in tax each month for
the first year would be continued. The
second year the penalty would be in
creased to per. cent a month. At
the end of the second year the prop
erty would be offered for public sale
and sold under the direction of the
court, So that a fair title could be
given to the purchaser. Notices Of
delinguencies would be sent out each
year.
Under the present system the tax
title "grabbers' get the benefit of the
II per cent penalty. which gives them
a return of IL per cent a year on the
money they invest in tax certificates.
Mr.. Richards said that If his plan is
adopted the District would hold the
tax certificates and collect the penalty.
Mr.. Richards said that Congress
has the power to remedy the present
situation. Instead of helping the
delinquent tax payers, he pointed
out. Congress has made 1t more diff
cult for them by ordering that the
book listing the tax sales should
sell for it's cost plus 10 per cent.
which makes the price range between
s12 and SIS. and almost prohibitive
to the small home owner.
Discredits Ring" Charge.
While discrediting the existence of
the so-called tax title ring" Com
missioner Cuno II. Rudolph pointed
out that there are men who make
it a business to buy up property
listed for sale. Thirty-six men, he
said. purchased $492 2,846.97 worth OF
Of property in the last tax sale in
March. IF the tax titles to this
property had not been purchased by
these men," he declared. the Dis
trict would have been almost $780,
900 short in it's taxes"
Commissioner Rudolph takes the
position that any person who owns
property knows that taxes must be
paid on 1t and should take the
trouble to learn whether the taxes
are in arrears or not. otherwise.
he said, "'the property owner is not
competent to hold property. He is
not a good citizen"
The Commissioner. however, be-
lieVes that the cost Of the book listing
duced in price, so that small property
owners could afford to purchase it.
Bill to BE Sent July 1.
The criticism voiced by Senator
King served to bring out today the
fact that testimony was given before
! the Senate subcommittee on appro
priations recently to the effect thai
after July 1 the authorities would be
gin mailing out all tax bills.
At the hearings before the subcom
mittee on the District bill, 1t was
learned today, Maj. Donovan testified
that during the last year the assessor
has been compiling a complete list o1
addresses Of real estate owners and
| that beginning with the new fiscal
year "all the tax bills will be mailed
out-the real estate as well as the
other bills"
The District has for a number oi
years mailed out bills for the persona
property tax. Maj. Donovan told the
Senators the absence of a complete
record Of addresses of real estate own
ers had prevented the mailing of rea
estate bills In the past.