Evening star., 1935-02-23
SCHOOLS LINKED
WITH TAX RELIEF
Municipal Services Gener.
ally Are Tied Up With Real
Estate Problem.

stable financing for the public
schools. uncrippled continuance of
necessary municipal services, stable
municipal credit, balanced State
budgets are all tied inextricably with
the problem of tax relief for real
estate" says Walter S. Schmidt. presi-
dent, National Association of Real
Estate Boards.
They are dependent upon the same
shift of tax loads, the same widening
Of the tax base which are the most
practicable means of bringing fairer
tax situation for real estate" Schmidt
continued in comment upon:
l. The more than 1000 tax bills
already reported to the associations
Committee on Real Estate Taxation
as now before the legislatures of A
States.
Present Trends.
2. The trend toward: (a) Estab-
lishment of an overall limitation on
the tax rate for real estate. Bills for
such limitation are now before the
legislatures Of States. (b) Shifting
certain large governmental costs from
local to State governments. (c) Wild
ening the State tax base to pay these
costs.
This is In line with the six-point
program for State tax action advo-
Gated for the past two years by the
National Association of Real Estate
Boards
3. The significant fact that more
stable school financing Through State
assumption Of school COSTS has come
in precisely those States which have
made thorough going adjustment of
their tax systems definitely as a
measure of real estate tax relief. Pro-
portion of school costs borne by the
States, as contraSted with the pro-
portion. they assumed in 1880. is
shown by recent study of the asso-
ciation from data made available by
the Governors of the States
While a large proportion Of the
thousands of tax bills now before
State legislatures are concerned with
Symptom-curing for the huge tax de-
linquency, which is estimated in 1888
to have reached Is per cent, certain
States which were pioneering in draw
ing such costs as those for roads and
schools from tax base other than
real estate already begin to show the
good effects of such modernization
measures" Mr.. Schmidt points out.
Interest in Good Schools.
Real estate groups have a very di-
rect interest in good schools, sanely
and economically operated" Mr..
Schmidt emphasizes. They have a
like direct interest in community
maintenance of good streets, good po-
lice and fire protection and other
such necessary services They have
strong business interest both in
good municipal credit and in fair real
estate tax rates. The depression,
with its near breakdown of such tax
systems as were based almost en-
tirely on the general property tax.
forced reduction of municipal operat-
ing budgets from 20 per cent to 40
per cent (as is estimated in a recent
article in the official publication of
the American Legislators Association
That taught us something about the
relationship of good schools, good
street maintenance. good municipal
credit and fair real estate taxes. 1t
has shown that these objectives of
good government, far from being op-
posed objectives, are organically re-
lated. 1t is important that the as
Sociation's program be considered not
as a number of isolated proposals, for
tax limitation. shift of street and
school costs and the like. For far
seeing action they must be considered
as a closely co-ordinated group of
measures. which, by opening a way,
as they have done, for practical real
estate relief, have opened a way to-
ward eventual stabilization of local
| and State governmental finances and
services"