Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-04-19
DC. TAXADEQUATE,'
RICHARDS Shows
Per Capita City Burden
Exceeds That of Many
Cities Compared.
fContinued From First Page.)


burgh, Houston. Tex; Buffalo, Gin
cinnati, Newark. Rochester. Louis
vile, Portland, Oreg.; Denver. Prov
idence, r. l.; Richmond. Va; Nash
vile, Tenn; Des Moines, Iowa, and
Reading, Pa. They were selected as
examples of cities having populations
ranging gradually from 100000 up to
the largest.
While Mr.. Richards included, for
comparative purposes, both State
taxes and debt service, he devoted q
portion of his report to discussing the
effect of city Indebtedness on tax
levies, showing that in 1880 the debts
Of so cities amounted to nearly S.
100000 900, or more than IL per cent
Of the total Of their property assess
ments. He argued that debt service
should be eliminated from the COM
parison of city tax burdens, although
the elimination was not made in the
lack of necessary statistical informa-
ton.
Debt Charge Is High.
He cited one specific example, De-
troit, where 24.2 cents out of the city
tax dollar went for payment Of inter-
est and principal on its debt. This
figure was larger than any other
single unit cost, including that for
public schools-23.5 cents.
1t would appear, he said, that at
least 10 per cent would be added to
the taxpayers burden in the District
If similar conditions existed here in
regard to debts and payment of in
terest and the sinking fund.
1T is evident that many cities, if
they wish to do so, can avoid debt by
a policy Of pay as you co." Mr..
Richards asserted. Such a policy
would save interest on the money to
be borrowed, although for a short
period it would increase the tax rate.
1T is well known procedure of
many cities to reduce their debts by
sinking fund and then to borrow
additional money to point beyond
any previous amount of Indebtedness.
At least it seems fair and equitable in
comparing local taxation with taxes
elsewhere to make deduction of any
tax due to any debt burden.
1T is not fair to add to the District
tax burden because of the debt IL
terest elsewhere, since the District
(by direction of Congress) has been
required to adopt policy of pay as
you co. This policy either has pro-
duced all needed special improve
mentS or else there is a lack of GER
tain improvements
al taI
taxes due to debt payments. If this
deduction, which Mr.. Richards was
unable to make on account of the
lack Of the necessary figures, were
made in his comparisons, the result
would be even more favorable to
Washington.
The decided contrast between tile
District and list Of other cities in
the relation of assessments to prop
erty values is revealed clearly in other
tabulations by Mr.. Richards, based on
city reports of 1928.
Three Years Covered.
Where other cities had failed to
show proof that their assessments
were near to true market value,
Richards submitted reports on a
factual check made on assessments in
nine large sections of the District
representative Of Washington,s total
taxable area), revealing that they were
but slightly below sales. This survey
covered sales and assessments in the
years 1882, 1888 and 1884.
Eight hundred sales in all were
checked against assessments. Even
after making allowance for default
sales, not regarded as true tests of
value, Mr.. Richards found his assess
ments totaled $l2,181, 80l, whereas
difference of only S147,757.
In the downtown business area
there were Is sales listed in the three
year study, the total price being S.
614,57l as against assessments amount
ing to $4,224,232, showing they were
ITO per cent of sales.
In an area between K street and
Florida avenue, between Sixteenth
street and Rock Greek Park, there
were Ill sales amounting to $2,514,633
as compared with assessments totaling
$2,571 ,227, showing assessments were
102 per cent of sales.
Sales Of 116 properties in the area
between Florida avenue and Spring
road, Eighteenth street and Georgia
avenue showed assessments were at
almost 100 per cent. The sales totaled
$1,188,217 as against $l,193,422 for
assessments.
Private sales in the area between
Seventeenth and Twenty-third, F and
K street amounted to $445,950 as
compared with assessments of $431,-
904, showing the latter were So per
cent Of sale prices Default sales in
the same area amounted to $747,750
as against assessments of $904,816
against these properties, showing as
sessments were 121 per cent of sales.
100 Properties Checked.
In the area east Of North Capitol
street to the Anacostia River and
north of Florida avenue to the Dis
trict line assessments amounted to II
per cent of sales, as shown in DISPOSE
ton Of 100 properties for $615,819 As
sessments against these were S479,775.
In the area north of Albemarle
street from Rock Greek Park to Wis
consin avenue there were 102 sales
totaling Sl,059,260 as against assess
ments of $917,339, showing an SO
per cent relationship
In the area north of Spring road
and east of Sixteenth street to the
District line the percentage was found
to be 50 per cent, with 1853 sales total
ing $1,343,894, as compared with
assessments of $1,104,133.
In the Northeast and Southeast Sec
tons, combined for study, there were
ITS sales amounting to $l,547,214, as
against assessments totaling $685.
1859, showing an 81 per cent relation
ship.
The progress made in development
of the Federal character of the Dis
trict of Columbia has taken heavy
toll in taxable properties here. Mr..
Richards showed in another section
Of his calculations.
The present value Of Federal
property in the District, which Is tax
exempt, he placed at more than a
half billion dollars, or 1855, 148 ,606, to
be exact. This is about half the total