Evening star., 1932-02-21
PROPERTY DECLINE
RUNS VALUES HERE
NEAR ASSESSMENT
Sales Prices Cited by Rich
ards to Show Thorough
ness Here. \
OTHER CITIES BELOW
RATIO OF CAPITAL
$12, 600, 900 1888 Increase Predict
ed Over This Years $1,226,-
891, ,948 Total.

Declining property values In the
District since the depression have had
the effect of raising the ratio OF assessed
to full value here, 1t was disclosed yes
terday by Tax Assessor William P.
Richards.
Property in the business area has
suffered the great shrinkage, Mr.. Rich
ards said, although there are isolated
cases In some residential sections where
values have declined to a point nearer
the assessment figures:
An analysis of real estate transac-
tions in the business area in the last
several years, Mr.. Richards pointed out,
showed that sale prices averaged ap-
proximately 81 per cent OF the assessed
value. In 80 specific cases studied, he
said, the sale prices totaled $2,265,0l2,
while the assessment on the property
In 1882 amounted to $2,l99,08l.
Periods Are Contrasted.
Mr. Richards also studied 3,100 sales
in 13 subdivisions during the high price
period of 1925, 1895 and 1927, and
found that these properties have suf-
fered a shrinkage in value of about 20
per cent. The sales in the three-year
high-price period. he declared, totaled
s65 900 900, but their value at the pres
ent time is approximately $4,000 900.
The 1928 assessment amounts to $751;
064, 900.
Since 1928, the law has required
full value assessment in the District
but the actual ratio, as compared with
actual sales, has been about 80 per
cent of full value.
Despite the decline in property values,
the 1893 assessment, yet incomplete, Mr..
Richards predicted, would total about
s12 100000 in excess of the 1882 as
sessment of $1,226,69l ,948. The in
| crease, the smallest since 1923 when the
| District went on a full value assess
| ment. will be due chiefly. according to
| the assessor, to improvements and new
construction in subdivisions.
Points Of Reductions.
AS a result Of the reduced values on
| business property. Mr.. Richards said
he has lowered the assessment on prop
erty In the business area. The princi-
pal reductions were made in the section
| between Ninth and Sixteenth and H
streets and Pennsylvania avenue. Some
reductions also were made along Six
teenth street as far north as Florida
avenue, and in isolated cases in resi-
Dental sections.
Mr.. Richards views are considered
as possibly having an important ef-
when it begins its study of comparative
tax rates for this reason:
| In 1922 the Census Bureau. in its
decennial report Of wealth, debt and
taxation in the United States, compared
the thoroughness Of assessments in the
District with the thoroughness of as
| sessmentS in the States. 1t found that
the Districts relation of assessed to
full value was 908 per cent
| This was the highest on the list But
that figure was relative and not an
absolute figure. 1t merely meant that
considering 100 per cent as the ideal.
| which is never attained. the District of
Columbia was more thoroughly assessed
and came nearest approaching that
ideal than any other section of the
United States The figure of 90 per cent
subsequently has been used in the lab
solute" sense by the Mapes Committee
and such agencies as the Detroit Bu-
reau of Municipal Research in their
value represented by city's assessment.
Ratios Accepted by Agencies.
At the same time these agencies have
accepted 80 and even 100 per cent as
the ratios Of assessed to full value in
other cities. Thus, while Washington
was shown by the thorough investiga.
tion of the Census Bureau to be the
most thoroughly assessed of the areas
examined, it is sometimes shown by
other comparisons that the relative fig
ure Of 908 is lower ratio than the
theoretically absolute ratios reported BY
Sther cities.
The Mapes Committee found that
Washington's assessed valuation between
1920 and 1880 showed the greatest per-
centage Of increase of any of the cities
compared Washington, 1916; aver
age for other cities, 50.13).
II Washington's increase of assessed
valuation has been more than three
times the average increase of assessed
valuation of other cities since 1920, and
II in 1922. Washington was shown to
lead the country in thoroughness of as
sessment. and If the decline in property
values since the depression has, as Mr..
Richards said. made higher here the
ratio Of assessed to full value, Washing
tons assessment probably is nearer 100
per cent than ever before.
The ratio Of 80 per cent, set down as
| an absolute figure Is probably much
lower than it should be, especially when
compared with reported ratios else
where.