Evening star., 1934-06-16
CALL WAR COUNCIL
FOR TAX RELIEF
Committee on State and
Local Taxation to Meet in
Minneapolis June 29.

A council of war for real estate
tax relief, to meet in Minneapolis
June 20, is called by the huge new
Committee on State and Local Taxa
tion now being built by the National
Association of Real Estate Boards.
which sent out this week bulletin
progress report, summarizing action
now on foot in % States.
The bulletin is accompanied by two
notable tax maps of the United
States: one indicating States now
having real estate tax limit measures,
one showing States where such legis-
lation Is under discussion.
Eight States have no tax on real
estate for State purposes, according
to the report, while seven States have
a limitation on the total tax which
can be levied on real estate in the
State. In five of them the limit is
written into the States constitution.
This comparatively new overall"
type of limitation is stop upon the
total rate leviable by all taxing units,
including State, county, municipality,
school and special districts.
Three Have Limitations.
Three States employ. instead OF q
rate limitation some sort of budget
limitation. Only six States have no
limitation of any kind on the amount
of taxes which may be levied against
real estate for State, municipal or
county purposes Several States have
an active movement on foot, which
may become a general national move
ment, for abolition of the ad valorem
tax. the report showed.
The new national committee, al
ready some 800 strong, is the largest
committee of the kind which has
ever been set up. 1t is concentrating
as its first objective on enactment of
a constitutional overall limitation on
real estate taxes in every State
as the most effective first step in the
national associations 6-point tax pro-
gram
Adam Schantz III, Dayton, Ohio,
is chairman. Lawrence G.. Holmes,
former executive secretary of the
Indianapolis Real Estate Board, is
secretary to the committee.
The conference of June 20, the
initial meeting of the committee, will
be an important feature of the COM
ing annual convention of the National
Association of Real Estate Boards, to
meet in Minneapolis June $3.50. The
entire States Council of the associa-
ton has been invited to join in the
conference, a luncheon meeting. Tax
strategy for legislative sessions, now
in sight in the coming year for every
State in the Union, will be discussed.
Property Owners Invited.
Property owners of the 48 States
are invited to take part. The Min
neapolis Real Estate Board. host to
the convention, is inviting local
groups interested in the formulation
of tax program to sit in with the
association at this meeting.
The eight States which at present
have no real estate tax for State pur-
poses are: Delaware, Michigan,
North Carolina, Pennsylvania, Ilh-
nois, New York, Oklahoma and Vir-
ginia.
Three States in lieu of rate limita-
tions use budget limitations. De-
tails: California, levy may not ex-
ceed given fraction of previous bien-
mum levy. North Dakota, increase
of levy may not exceed increase of
assessed value. Oregon. levy limited
TO that of previous year. May be
exceeded by referendum. Prior debts
plus interest excepted.
The bulletin cites "a States in
which action is now in progress
toward real estate tax limitation.
Have Limit on Levy.
Seventeen States which have no
overall limitation do have a limit on
the levy which can be made en- real
property for State purposes. They are
Alabama, Arkansas, California, Colo
RADIO. Georgia, Idaho, Kentucky, Loui-
Siana, Missouri, Montana, North Caro-
lima, North DakoUa, South Dakota,
Tennessee, Texas, Utah and Wyoming.
A ma ajority of all States nave the old
type limitation on property taxes for
municipal and county purposes, some
times imposed by statute, sometimes
by the constitution.
The six States having no limitation
of any kind on the amount Of taxes
which may be levied against real es-
tate for State, municipal or county
purposes are Connecticut, Maine, Mas
sachusetts, New Hampshire, Vermont
and Maryland (Which has limitations
on the tax on intangibles, but not on
the real property tax.
Constitutional limitation, the COM
nittee bulletin concludes, in the ma
jority experienced is shown to be the
best approach to real estate tax relief.
The States having constitutional over
all limitations have been the States
which have obtained most satisfactory
results in reduction of property taxes.
They have shown in each case very
material reductions in property taxes
since the constitutional provision went
into effect. The way has been made
hard for tax officials to disobey the
intent of the law. General experience
in these States is that the only case
where the limit may be exceeded is
for levies to retire Indebtedness exist
ing at the time of the adoption of
the amendment, whereas evasion is
easy under the older type of imita-
ton, the type in which a separate
limit is applied for each class of tax
ing unit but no overall rate limit is
named. Ways have been found to
evade these old-type limits in almost