Evening star., 1932-09-17
PROGRESS IS SEEN
IN TAX REFORMS
Movement to Reorganize
State and County Govern
mentS Shows Advance.

Progress in the movement being con-
Quoted by various organizations and in
dividuals for reorganization Of State
and county governmental structure and
reform of their financial and tax sys-
TENS to reduce the tax burden on real
estate is reported by the National Asso
citation of Real Estate Boards.
Far-reaching changes have been
adopted recently in some States and the
voters of others in the near future will
pass Judgment on similar proposals
according to the realtor board.
This movement, accentuated by the
problems arising out of the depression,
has resulted not only in adoption OF
economy programs. bringing healthy
slaSheS in government costs, but also
in new forms of control in tax matters.
Indiana Shows Trend.
Summarizing recent State tax actions,
the national realty association declares
that the new Indiana tax laws are
strongly indicating the trend of
thought toward State control of local
budgets and assumption by States or
counties of township responsibilities
which can be managed more economi-
cally by the larger governmental units.
TuUllC IUduS, puullC SCIlUUlS anu Tic
levying of assessments are the three
functions of the local government in
which this trend is now strong, it is
declared
The new Indiana law providing for
State tax limitation and control of local
tax levies practically cuts in half the
average tax rate on property in Indiana,
according to an estimate by the III
dianapolis Real Estate Board. I'M
p0rtant provisions of the law are:
l. Total of all tax leves for which
revenue shall accrue to the State treas
urer for year 1882 and each year there
after shall not exceed Is cents upon
each Sl00 of taxable property.
g Total of all tax levies on property
within any municipal corporation shall
not exceed Sl50 on each 500 of as
.~sessed valuation except as provided in
3 below.
Adjustment Board Created.
g. A county board of tax adjustment
Is created with power to revise and If
necessary reduce the tax levles OF any
municipal corporation so that the total
with the State levies) shall not exceed
81 so; provided, however if an emer-
gency is declared by the board to exist
rate of taxation higher than the legal
limitation may be fixed.
f. Appeal from any emergency excess
rate may be made by any 10 taxpayers
to the State Board of Tax Commits
-sioners. which must give the appeal
Other notable provisions adopted by
Indiana in the special session OF its
Legislature just closed are:
l. A law practically eliminating local
levies for gravel road repair. The
measure diverts to the counties. cities
and towns one-half of the gasoline tax
and automobile license fees, turning
over to local units approximately
S1I.O0O,OO0.
2. A bill transferring to counties all
jurisdiction of township roads.
The California Legislature at its
coming session is expected to have be-
fore it two major proposals for tax
adjustment. both Of them based on
State assumption Of functions hitherto
performed by local governmental units.
Shares School Burden.
The first is a proposed amendment
to the State constitution which would
require the State to assume the share
of school support now contributed by
the counties and raised by ad valorem
property taxes, a total of S45,000 900
yearly.
1llC StCOLlu lllCdSuIC 10 AOl etsoNtiiAP
ton by the State of a larger share OF
road costs. The proposal would permit
reduction in county taxes on real estate.
West Virginias Legislature in its
special session just closed:
J. Adopted q joint resolution to sub
nit to the voters in November al
amendment to the States constitution
providing for the classification OF prop
erty for tax purposes.
2. Adopted a law requiring all tax
levying bodies to reduce this yea1 S
levies Is per cent under what they
were last year.
3. Authorize the semi-annual pay
T. Extended the time for redemption
of delinquent real estate for the years
1929, 1880 and 1881.
In Ohio a special committee on tax
delinquencieS, mortgages and |foreclos-
ures, appointed by Gov. George White
has held public hearing. the findings OF
which are to be the basis of emergency
legislation to be proposed by the Gov
ernor to a special session OF the States
Legislature.
Moratorium Proposed.
Proposals made on mortgages. A
moratorium and redemption period
during which the mortgagor might re-
deem his property.
Proposals made on taxation: Tax
lien certificates to be negotiable paper
with low interest rates: abolition OF all
penalties to a certain date; payment o!
current as well as delinquent taxes on
an installmenG plan.
North Carolina, as the result of laws
adopted in 1881. has lowered its total
property tax bill by approximately L
millions of dollars per year, according
to Fred w. Morrison, executive secre-
tary of the States Tax Commission
In order to reduce taxes on property
the General Assembly increased taxes
on incomes, franchises, licenses ana
gasoline. The resulting reduction II
the total cost of government for the
State and all units is between five an0
seven million annually.
Under the 1884 law North Carolina
assumed responsibility for the suppol
of $4,000 miles of roads in addition to
the 10000 miles in the State highway
system. Through this action something
approaching one million dollars PEE
wear is estimated to be saved.
The new school law under which tht
State itself assumes the primary re- re,
sponsibiIity for the operation OF the
six months school term resulted In
reduction of from S3,000,000 to So,
100000 in the cost of operation OF tins
six months term, provided for the sup
port of this operation out OF the Stap
treasury. and raised all the revenue TO-
this purpose except $4,500,00O from
sources other than ad valorem take
on property.
,,,,,,.,,,,,,u,uI,,,,,,,,,,