Evening star., 1937-02-14
FORESEES RESULT
OF REASSESSMENT
U. of NJ. Aide Says Project
Would Add $21,651,267
in Montgomery.
BY JACK ALLEN,
Stan Correspondent of The Star.

Paul Walker, University of Maryland
economist.
The prediction is based on a study
made at the request Of the Montgom-
cry County Farm Bureau, which has
laid Walkers report before county
legislators in support Of its recon-
mendation that the Statewide re-
assessment due in 1887 be made,
rather than postponed as proposed in
. Senate bill.
1t was pointed out in the findings
Of the economist that an increase Of
approximately $22,OO0,o0o in the as
sessable basis Of the county will be
required to meet increases in debt
cost for the 1878 levy over the
amount levied for in 1867 If the
present $3.50 rate Is to be main
tanned
Range Of Change Given.
Revaluation would add $21 ,65l ,267
TO the real property basis, while re-
assessment Of personal property would
put another $l.844,479 on tn books
"a total Of s23.795,746, the report
forwarded to State Assembly mem
bers shows.
The reassessment would tend to
raise the assessments on urban prop
erty from 10 to 55 per cent. but no
changes in total assessments seems
necessary for farm real estate, accord
ing to the report. 1t adds, however,
that inequalities among various farms
and districts should be corrected.
Changes in the urban sectors would
range from SIS per cent in Wheaton
election district and 40 per cent in
Bethesda district down to 10 and 20
per cent in the other districts in the
urban section Of Montgomery, near
the District of Columbia.
This adjustment upward of such
property would raise the assessed
value to about 81 per cent of the
sales value" the economist stated.
Suburban property and farm prop
erty would thereby be placed on a
better quality"
Tax Rate Discussed.
He illustrated this by explaining
Agriculture Department data on farm
real estate values showed insignificant
changes from 1888 to 1886, but in
creases of about 4 per cent in 1896,
which, together with any increases in
farm value in 1887, would bring the
assessed value of rural property to
about IS per cent Of sales value.
Discussing the county's tax rate, the
report states:
The outstanding factor responsible
for a high tax rate to pay current
and debt obligations in this county Is
the underassessment of properties.
particularly in the lower portion OF
the county. Had property been fully
assessed as provided by law, 1t is quite
possible that there would be no need,
with the current tax rate, Of refunding
serial bonds as the principal falls
due
Had property assessments in the
lower portion Of Montgomery County
been increased by Is per cent since
1929, and had personal property been
assessed comparable to per cent of
the real property (Which is the low
est ratio in the State), taxpayers in
Montgomery County. without any bur-
den greater than taxpayers in ad-
joining counties relative to the value
of property, would have ultimately
enjoyed a saving of $1,500.000. .
BY virtue of direct levying for a
portion Of the public improvements, a
saving in interest charges equivalent
to IS per cent of such capital, would
have been possible with an increase in
basis of Is per cent.
Costs Increase.
General administration COSTS" the
report continues, "have increased from
SAT ,2e0 in 1e2s-30 to s111,740 in 1885,
z, or 1856 per cent. Law and order
appropriations have increased from
$81, 1,277 to $120,206, or 48 per cent, in
the eight years. Bonded debt require
ments have increased from 5000, $50 to
$828,541, or 168 per cent.
During this period, namely, from
1929-30 to 1867, the taxable basis
on real and tangible personal property
Excluding motor vehicleS) increased
from $77,073,685 to $90,062,2 or II
per cent. The approximate $13, 900
increase in the basis during that period
at a rate Of $3.50 would produce
Sl95,000 for revenue, whereas the
four functions listed above increased
in cost by $847, ,084. The basis on Sc
curities showed no increase for 1856
over 1929-30, and no data on securities
were available for 1867.
"A higher tax rate was inescapable
under such conditions unless drastic
reductions in salaries and other ex-
penses took place. 1t is also folly to
assume that rapid suburban devel-
opment will enrich the county
through increased taxable wealth If
such improvements and increases in
wealth do not increase the taxable
resources OF the county comparable
with the cost Of county services made
necessary by such developments. Bond
issues predicated upon an assumption
Of additional tax resources that do
not materialize mean an ultimate in
crease In cost TO taxpayers.
Other Factors Involved.
another factor contributing to the
COILlpdl dIlNC 1iSA SOct VI SOFCAA.
ment is the administrative and me-
chanical set-ups necessitated largely
by reason of the political unit Or
carnations within the county. There
are 81 tax rates varying from $1.70
to $2.4o and applicable to 81 differ
ent bases within the county. In addi-
tion, special taxing areas. compare
bic in function to incorporated towns,
have rates varying from 10 to IS
cents. The segregation, ALLEGATION
and collection of tax revenues by vir-
tue Of the multiplicity of special tax
ing jurisdictions in the county impose
an administration cost that Is unnec-
essary and an expense upon the tax
payers living outside Of such special
taxing areas"
Walker said such administrative
expenses can be reduced in an amount