Evening star., 1933-04-14
Easing Tax Assessments.

1t is probable that most OF the cities
and States are achieving desired reduc-
tions in their local tax burdens in this
day of falling values by lowering as
sessments rather than by reducing tax
rates. In the ma jority of States and
cities the law requires assessment for
taxation purposes at full value, but in
actual practice assessments nearly
everywhere are far below full value
in some cases Of past record as much
as seventy-five per cent below full value.
There is, in the first place, an apparent
ly general recognition Of fundamental
difference between assessments for taxa
ton purposes and assessments or valua-
tions for sales. In the second place, the
tendency of assessors In the States,
holding political office and directly re-
sponsive to the wishes Of their con-
stituentS, Is to give the taxpayers the
benefit of every doubt and to under
assess for taxation rather than to over
assess. In the third place, since in
these States and cities certain sum is
to be raised by combination of assess
ment and tax rate, it makes no differ
ence to the taxpayer whether the
assessment is high and the rate low or
percentage low. If the legal hundred
per cent assessment valuation is halved
in practice the tax rate must be dou-
bled. to produce the needed revenue.
In these days Of falling values, as
sessments nearly eyerywhere-with the
very marked exception of Washington
have responded directly by decreasing
as the values decrease. That Is an
automatic reaction. generally preserv-
ing the ratio, whatever it might actually
be. between assessed and full values. In
other cases the law which fixes assess
ment at one hundred per cent full value
remains unchanged. but the standard
of assessment Is by decree horizontally
reduced, the reduction applying to all
property.
The Associated Press reports the
action by the State Tax Commission Of
Kansas in deciding to order sixteen
and two-thirds per cent reduction In
Kansas real estate values for tax as
sessment purposes this year, and the
tax officials estimated that the cut in
assessments would result in a saving
of about $7,400, 900 to taxpayers. Cen
sus reports, quoting assessment officers
Of Kansas, give the ratio of assessed to
true value In Kansas as being one hun
dred per cent, although 1t is generally
acknowledged that the ratio, as a matter
of fact, is below one hundred per cent.
The Kahsas State Tax Commission has
ordered horizontal cut in assessments,
presumably leaving untouched the
illegal standard" of assessment
In the annual report of municipal
activities for the City Of Cincinnati for
Its fiscal year of 1882 the boast is made
that the city has come through the
stresses and storms of the depression
with small cash balance in its operat-
ing funds, with all it's obligations paid.
with its bonds still quoted at a pre-
MUM, and the city tax rate for 1882
of $3.50 per 81 900 assessed valuation
was the lowest for any city of 300 900
population or over" Ohio cities follow
the practice Of assessing at one hundred
per cent of true value, and their actual
ratios are trsditionally high, relatively
speaking, because OF State laws which
place maximum limits on municipal tax
rates. Yet Cincinnati's total assessment
on which taxes are levied has shown
the following decrease since its high
water mark for the fiscal year 1881:
1881 ......Sl, ,125, ,927 $50