Evening star., 1932-12-10
NEW TEXAS LAW
BOOST FOR HOME
First $1,000 Assessed Value
of Residential Property
Tax Exempt.

Texas adopted an amendment to its
constitution at the November election
which exempts the first $4,000 as
sessed valuation of residential home
steads from all State taxes, the Ma
tional Association of Real Estate Boards
reports in a review of recent acts con-
cerning the tax burden on real estate
Two other States, Michigan and
Washington, adopted tax limitation
provisions. Michigan, however rejected
o proposed constitutional amendment
to exempt from taxation to the extent
OF $4,000 all homesteadS owned and oc-
cupied by any householder, excepting
only special assessments for ways and
taxation for public debt previously in
CURED. A similar measure in Arkansas
failed Of adoption.
Limitation Provision.
The approved Washington tax-limita-
ton provision more drastic than that
adopted by Michigan, was balanced by
adoption of State income tax to make
I'D the expected reduction in revenue
from the general property tax.
Under the new Washington provision
q measure initiated by petition Of ap-
proximately 10000 voters, the general
property tax of the State was limited
to 40 mills, on an assessment OF SO
per cent of true value. The rate for
merly was 80 mills on so per cent
valuation.
The washington income tax, the
Realtor Board reports, was set up so
that it would not be a double tax on
real estate. 1t carries offset provisions
that the home owner may deduct up to
$50 from his income tax for any real
estate tax paid on a home and that the
taxpayer has a SO per cent offset for
real estate taxes or personal property
taxes which he has paid.
There already is different situation
IN the State of Washington in regard
to real estate investment because OF
these tax adjustments" 1t IS declared
by j. W. Wheeler, Seattle, past presi-
dent of the Real Estate Board of that
city and also of the Pacific Northwest
Real Estate Association.
Michigan Amendment.
The Michigan tax Limitation amend
ment was put on the ballot by petit
tion Of about 350,000 persons the ma
tional realtor body reports. It provides
that the total amount of taxes assessed
against property for all purposes in any
one year shall not exceed is per cent
of the assessed valuation. There Is an
exemption that taxes levied for pay
ment of interest and principal on OBJ
legations previously incurred shall be
separately assessed.
The amendment carries provision
that by two-thirds vote of the electors
of any assessing district or when pro-
vided by charter of municipal corpora
ton, the limitation may be raised for
a period of not more than five years at
q time, to not more than S per cent of
assessed valuation. The Michigan limi-
tation Is based on assessment at true
cash value.
Ohio two years ago adopted consti-
tutional provision that real property
may not be taxed at more than 112 per
cent Of its true value in money for all
State and local purposes. Indiana, In
law adopted at the recent session Of its
State Legislature, set a limit on property
tax for State purposes Of Is cents on
each $100 of taxable property and a
limit for municipal corporations Of $3.50
on each 500 of assessed valuation.
Exceptions may be made through q
county board of tax adjustment.