Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-26
DISTRICT SEEKS
MEANS TO RELIEVE
RISING TAX BURDEN

IuOiHO HN OOLtDI's
Continued from First Page)
at Ninth and F streets, property IS
assessed at S75 a square foot. Busl-
ness must be bright indeed to support
such a rate.
Rise at Thomas Circle.
The assessment on a section eof land
on Thomas circle few years ago
was ,S309.7S0. This has now risen. un.
der the new assessment, to S413.O4O.
On Ninth street between F and u
property assessed recently at $15O,S0O
has risen to $208,S00. On the same
block, another property recently as
sessed at ISL $50 is now assessed at
$50 ,405.
Tax Assessor Richards states that
the law is for assessment at real
value, and he is only carrying out the
law when the assessments are made.
To furnish an example OF how the as
sessment in 1924-1926 on number or
close they are to the actual value or
property as demonstrated by real es.
tate transfers, records compiled by
Mr.. Richards show that the total as
sessment in 1924-26 on a number OF
properties was $44.944.785. The tenta.
tive assessment for 1928 was placed
at $55,403,231. The consideration in
sales Of the land involved in these
properties was S58,538.237. The &C
tual value of these properties, as de-
monstrated in the sales. was only So
1876 ,0O6 greater than the assessed valu'
alton, upon which taxes were levied.
In some cases the assessment exceed
ed the purchase price.
Complaint is made that the method
Of obtaining these assessments is
wrong. for the purchaser of a prop
erty because he wants ii for some
specific purpose, may pay more than
it is actually worth to obtain posses
sion. If the price is high, the as
sessments upon all surrounding prop
erty are increased on the assumption
that the surrounding property has
likewise increased in value. Mr..
Richards states, however, that
his records show that assessments are,
on an average, very close to the real
value. He is ordered by law to assess
real estate at its true value. Allow
ing always for the possibility Of a
"break" in the real estate market
here, the assessors. he states, have al
lowed for this eventuality every year
by taking it into account in tneir as
sessments. But experience has shown
that, the ZEAL value of downtown prop
erty has been increasing steadily
ahead of the assessments. he states.
Levy Depends ON Budget.
AS a matter of fact, the amount
| to be raised by taxation in the Dis
| trict depends upon the size of the
| budget. If the assessments were low
| the tax rate would be high, while the
| higher the assessment, the lower the
| tax rate. In the END, it makes little
! difference, for the money must be
| paid-whether the amount is baseC
on a high tax rate or whether 1T Is
based on a high assessment. But the
example given above, showing how
this assessment has risen with the
| tax rate from year to year, forcing &
| double taxation burden on property
| owners within the space of a few
years, is considered sufficient need fol
some new arrangement by those ad
vocating it. The only advantage tt
the property owner Of a high assess
ment is in case his property Is to be
sold, when it may influence the pur
chase price. Otherwise, he must bear
the increasing burden, taking comfort
in the fact that the higher assess
ment reflects increased business.
In addition to the fact that the
general trend throughout the country
has been for reducing taxes, and that
the National Government is striving tt
do this in all Federal taxes. Washing
| toms tax rate and assessment basis
rank high among those Throughout;
the country, and Washington's tax
rate Is on the increase.
| For instance, Detroit, with Il popu
lation of 995,668. assess it's real es
tate at 1921. 275,5 $50 on the same basis
that Washington, with Il population
of $4,000, assesses its real estate a,
$1,150 ,000, 900. Detroit is the only one
of long list of cities which claims &c
assess it's real estate anywhere near
it's true value, with the exception OF
Boston, which, assessing its real
estate on the basis of 95 per cent, ar
rives at total of 1883, 957.500 The
population of Boston is 770,932; We;
| it's assessed real estate is only 5000
900, 900 higher than Washing tons.
Triangle Adds to Problem.
In addition to the already high ex.
listing tax rate and high assessments
notice already is being taken by citi.
zens of the possible effect upon the
Districts tax rate of withdrawing the
| land composing the Avenue triangle
from taxation in connection with the
Government building program.
There are two ways of looking at
the possibilities involved. One view is
from the standpoint of the tax col.
lector. The chances are that property
owners, removed from the Avenue tri.
angle probably will locate their bust.
ness elsewhere, and that the invest.
ment of many of them in new proper
ty will be greater than in the property
sold to the Government. Their taxes
is always figured to certain extent
on the basis Of population, and the
acquisition by the Government of the
Avenue triangle will not reduce the
Districts population 1t is pointed out.
But there is another view, from the
standpoint of the property owner. The
man who sells his property on the
Avenue triangle. in moving elsewhere,