Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-07
MONTGOMERY TAX
BASIS! |! JUMP SEEN
a
S157, 900, 600 by 1910 Esti-
mate of County Civic
Federation.
BY WILLIAM s. TARVER.
stan CORRESPONDENT of The Star.

BETHESDA, Md, December ga
taxable basis of $157, 100000 for Mont
gomery County by 1910 is foreseen in
. report to be submitted to the Mont
gomery County Civic Federation here
Monday night by its Committee on
Public Finance and Budget This figure
represents an increase of 10000, 900, OF
90 per cent. over the present $Sl ,000,0 00
assessed value.
The report sets out a detailed analysis
Of county finance as well as an expo
sition' of the facts on which the
committee bases its figures Of the prob
able property increase within the next
decade.
1t was prepared after months Of
study in which comprehensive survey
of all figures and facts available con-
corning past growth Of the county and
Thorough study of factors which are
likely to govern the countys future
growth.
Rapid Growth Predicted.
Montgomery is pictured as outstrip-
ping Washington in rate of growth, but
as being dependent to large extent on
the National Capital for increases in
population, wealth and prosperity. The
greatest increment of property value
win be in sections contiguous to the Dis
trict Of Columbia, which will develop as
large residential areas at an inverse rate
to the amount of unoccupied space in
the Northwest section Of Washington
City, the report states.
Included in the report is also list of
projects involving the expenditure OF
county funds approved by the civic fed
Grafton, but uncompleted by county au-
thorities, or pending before the fedora
ton but not finally acted upon by it.
Estimates Of cost have been included
wherever the committee counts them
available
The report is presented in graphic
manner by series OF seven charts. the
printed matter being merely in explana-
ton Of the charts and setting out the
facts on which the facts and prophecies
contained in the diagrams are based.
Personnel of Committee.
The committee is headed by Frederick
p. Lee, Washington attorney, and Is
composed of some of the leading resi-
cents Of the county, as follows: w. B.
Armstrong, Robert E: Rondy. Hugh
Charles w. Hopkins, c. A. Korbly, E.
Brooke Lee and Frank Severance.
The facts on county finances are based
on figures submitted by Berry E. Clark,
clerk to the Board Of County Commits
sinners. and compiled and analysed by
q subcommittee composed of Mr.. Dick
inson and Mr.. Farnham. The conclu-
sions relating to the future taxable basis
were formulated by a subcommittee
composed Of Mr.. Dickinson and Mai.
Lee The charts were drawn by Mr..
Dickinson.
Concerning the prediction of future
growth the report states:
That this estimated taxable basis
for the future should err on the side OF
conservatism is, we believe, evident. If
aeIual assessments for q given period
fan below that set by the Committee
on Public Finance and Budget, it will
mean an unforeseen increase In the
tax rate which would leave the COM
mittee and also the County Commits
SioneTs in office for that period open
70 severe criticism. Conversely, If the
estimated taxable basis for the future
turns out 70 be higher than that set
by the committee, the tax rate may be
lowered or additional public improve
ments undertaken"
It Is pointed out that the determi-
nation Of the future growth is of ut
most importance as q basis for esti-
mating the amount of revenue which
may be expected and the amount of
bonds which may properly be issued.
bonds so as most equitably to distrib-
ute the tax burden over the life Of any
particular issue.
Taxable Basis Report.
The following explanation Is given Of
the chart Of the taxable basis:
In addition to the values attrib-
utAble to new construction and enter
prise, the taxable basis of the county
Is composed Of values attributable 20
unearned increases In value Of existing
lands and buildings. These are the
values that the county recognizes upon
reessessment. For instance. the jumps
IN past values shown ON Chart I for
the years 1918, 1928 and 1923. as in
dieated by arrows. were due to re-
assessments made in each of these
years. Prior TO 1918 there was no re-
assessment for q period Of ten years
The next reassesSrnents will be at flve-
year intervals, T. e., In 1888, 1898 and
the like.
at win be noted that the jumps in
county values upon reassessments bear
. defnfte relation to the growth II
county values attributable to new con-
struction and enterprise during the fve-
year period preceding the reassessment
In other words. If building is brisk dur
ing the preceding period, the market
values and consequently the values GOV.
cred by reaSsessment increase rapidly
during such period At the end OF the
period upon reasseSsment there become!
available for taxation large increast
in county values. Whereas, If new
construction and enterprise Is slack
during the preceding period, county
values increase relatively slowly and
tend to retard the increase available To-
taxation upon reassessment at the enc
Of the period"
Estimate of Future Growth.
In forecasting the future growth o
the county. the committee considered
the following facts:
!. The maintenance Of the rate o.
growth for Greater Washington has de
pended upon suburban growth. Will
the growth Of the District proper dur
ing the past decade fell considerably
below the estimates Of the Census Blu
reau and Washington trade organiza
tons, the growth Of the suburban sec
tiens OF Maryland and Virginia dur
ing the same period was so large as h
bfing the growth Of the entire Create
Washington area up 70 the total fgur
gwen in these predictions.
2. Overbuilding has been confne,
largely to the center of Washington an
tie shrinkage Of real estate value
which has prevailed in Washington 70
the past several years has not affectet
Suburban homes and land, which ar
san selling at the price level deter
mined BY the favorable real estat
market Of 1877.
3. The suburban Montgomery Count
house market Is firm. Less than
per cent of the houses in the suburba
area can be purchased Of figures unde
their 1927 values.
Overflow From Washington.
{. The limited area of the DiStrit
OF Columbia viii result in an overflo
into Montgomery County Of person