Evening star., 1937-01-16
TAX LIMITS DUE
ON REAL ESTATE
Legislatures Expected to
Pass Laws or Strengthen
Present Statutes.

With State Legislatures convened or
about to convene in As States. and with
nine States now having an overall
limit on the real estate taxation OF the
National Association of Real Estate
Boards from its 600 members in 450
communities, indicate that IN some-
thing like third Of the States legis-
lation will be asked to create such
tax limit or to strengthen the existing
limitation.
In q number of States this move
ment will be supplemented by request
for specific legislation to base the valu-
alton Of real estate for tax purposes
on its warranted annual productivity,
utility or income. The association
proposes that in every State taxation
Of real estate property be based on
capital value established solely through
warranted annual productivity, in
come or utility of real estate. Follow
ing long study it urges that there be
set up in each State an overall limit
on the rate which may be levied on
real estate for all purposes, suggests
the assumption of school costs in
greater measure by the State, as one
effective measure for widening the
tax base, and asks for effective
budget control.
Nevada Amendments.
Nevada adopted at the recent No
vember election constitutional
amendment limiting the total tax
which may be levied against real
estate for all purposes, including levies
for bond payments, and so becomes
the ninth State to set such limit. In
this agricultural and mining State the
limit adopted Is per cent on the
true valuation. The amendment was
adopted by popular referendum.
In Pennsylvania resolution to place
before the electorate a constitutional
amendment for overall limitation, ap-
proved by both houses Of the Legisla-
ture, must again pass the Legislature
and Is expected to go on the next
State ballot. The real estate groups
OF the State led the movement for
the amendment. In Washington,
where the people by four-to-one ma
jority at the November election re-
enacted the statutory limitation, in
dorSing it for the third time in
successive biennial periods, a bill Is
being drafted that would write the
limitation into the Constitution. New
York's Legislature as well as that of
Massachusetts, Is expected to have a
limitation bill, supported by a wide
number OF tax-paying groups. In
Connecticut the Taxation Committee
Of the State Real Estate Association
is preparing a bill for presentation at
the coming session of the Legislature
for constitutional amendment that
would combine limitation of the
total tax rate on real estate with q
provision that valuation of real es-
tate for tax purposes shall be estab-
lished through the warranted annual
productivity, income or utility of the
real estate.
In Minnesota real estate groups are
opening a campaign for action at the
coming Legislature for limitation Of
the total tax rate on real estate. In
&NCW OC1oCyy IMdA ldAlN, 4lA4OAot w 10
consin, Texas, Florida and Utah a
strong movement is on for limitation
law. States where limitation meas
ure Is under discussion include Iowa,
Kansas, North Dakota and Arizona.
May Lower Limitation.
Rhode Island, the earliest State to
place a limitation on the total real
estate rate, Is expected to have before
the coming Legislature a proposal to
lower the 212 per cent limitation and
to include a provision for assessment
on the basis of warranted produc-
tivity. Ohio, which limits its real
estate tax rate to per cent, is study
ing a proposed amendment of its
assessment laws to require valuation
on the basis Of warranted produc-
tivity. Oklahoma is discussing posi-
BILE rewording Of its limitation law to
strengthen the measure and to this
end is considering bringing in the
principle that in valuation for tax
purposes the income value should
be a major consideration.
Indiana is planning to eliminate the
emergency" loophole in its limita-
ton Of the total real estate rate, and
is emphasizing enforcement of the