Evening star., 1927-10-13
Virginia Realty Tax
Rate Held Reasonable

R''N-'
In your editorial of October 6. re.
garding the matter 6f motor license
reciprocity between the District of
| Columbia and Virginia you alluGe to
'burdensone real estate taxes In
| Virginia.
| The Northern Virginia Bureau has
recently completed rather extensive
| research study of real estate taxes IT
| some 800 tax areas throughout the
| United States, for the purpose Oh
comparing the average OF taxes 9ctu-
ally paid in nearly Virginia with that
OF comparable communities in other
parts of the country. This compara-
| tive survey disclOSeS the fact. In no
uncertain manner, that Virginia, gen
orally, is an area of low real estate
| taxes, and that the three Virginia
communities just across the Potomac
! from the District. Alexandria city,
| Arlington County and Fairfax County,
are areas of very low real estate
taxes.
| 1t is true that tax rates in the three
| sections seem higher than those OF
the District or the nearby Maryland
counties However, the tax rate III
community may bear little relation To
the actual tax burden on the properly
owner. There is one State in the
| Union in which the legal basis Of
assessment is 3S per cent OF true
value. The tax rates of Minneapolis
| and st. Paul, Mimi, were $7.325 and
| 81 7.O41, respectively, in 1926. These
| figures look like tremendous burdens,
but the actual tax paid in these two
cities was less than 80 per cent more
| than that paid in the District OF Co
lumbia in 1926.
Let me call your attention to the
| fact that tax rates in the nearby Nlr-
ginia areas have not increased in the
past two years, as have the rates in
| the District and the Maryland coun-
| ties contiguous thereto. Last year
| Virginia became the fourth state Inc
| the United States to segregate real
property for local taxes. and the for
mer state tax on real estate was
abolished Not only have tax rates
increased In the District and the
nearby Maryland counties. but the
| basis of valuation for tax purposes
| has also shown a sharp rise in the
| District and Montgomery County, Md.
| In making our tax survey we used
| every publication available on the
subject and made large number OF
Inquiries on our own initiative. Our
researches included not only official
figures from the 200 largest cities in
! the country, but some so of the small
er cities. comparable to Alexandra,
and some so suburban counties, com.
parable in position and economic sit
uation to Arlington and Fairfax coun'
ties. No attempt was made to select
areas. On the contrary, we made 1t
point to secure facts from every
important metropolitan area in the
country. with one exception only. in
| which case dependable figures seem
to he unobtainable.
| The situation in nearby Virginia.
with regard to tax rates, is this: The
rates seem to be high. Int the actual
tax paid is low. on account of lower
than-average bases of valuation.
There Is quite a difference in favor
of Virginia taxpayers in the amount
of taxes actually paid there, as con- =
pared with either the District or the
adjacent Maryland counties
1t would seem that the Virginia sit
uation is rather unusual TO the casual
observer, unaccustomed to delve in
the subject of real estate taxes. On
! the contrary, it Is not unusual. Our
survey shows conclusively that COM
munities in which taxes are assessed
on the basis of full value of property
| are the exception. rather than the
rule. Not much more than 10 per
cent of the areas on which we have
| figures assess on the market value
basis, and we have reason to doubt
the fact, in most of these cases, as it
seems to he difficult to establish fair
market value basis for assessment.
Virginia taxes are gradually reach
| ing a basis of better 1rga nlZation for
the average resident of the state. The
present administration is committed to
| tax reforms, many of which have al
ready been accomplished. At the
present time Virginia is enc of the
most favorable States, from a tax
viewpoint, for the average citizen TO
| live in. because real estate and prop
erty taxes are actually lower, in
amount paid out, than in almost any
other part OF the United States.
| G. A. KEEFER,
| Executive Director.
Northern Virginia Bureau.