Evening star., 1937-06-16

n I statutes Of the 48 States
" " contain definite provisions
for the assessment of all
realty within the respective States at
full fair value. 1t is universally ad-
mitted that this is honored more in
the breach than in the observance.
The assessment of realty in the Dis
trict of Columbia is probably the most
noteworthy exception; it is doubtful
II in any other city there is more
sincere and efficient attempt to. MAIN
tain the average assessments at 100
per cent of full fair value. Naturally
there are variations from this average
In some individual properties, but a
recent and intensive survey has shown
closely parallels the ever-changing
value Of realty.
Every citizen of the District,
whether he be owner or renter, is
affected directly by the ratio of as
sessed to true value of real property.
One of the first questions asked by a
taxpayer is How do taxes on realty
compare with those of another mu-
nicipality?" Sometimes the answer is
sought by estimating the ratio of
assessment as it exists in Washington
and in the city under comparison and
then the necessary adjustments are
attempted.
In this connection, the maintenance
of the 100 per cent assessment ratio in
the District assumes particular sig
niicance. Translated into taxation,
If two cities have the same property
tax rate of $3.50 per hundred with
Washington having a ratio Of 100 per
cent and city "a SO per cent ratio,
then Washington actually has twice
the taxation rate Of city "A"
In other words property owner In
Jurisdiction having a full-value as
sessment with $150 per hundred rate
bears as much of the tax burden as in
Jurisdiction where there is a SO per
cent valuation with So per hun
dred rate The effect of Washington
D. C's unusually low rate Of s15C
per hundred, therefore, Is rela-
lively higher rate when discussed in
comparison with the rates of other
cities where the assessment is not
maintained at the full-value level.
Unfortunately in comparing tax bur-
dens, one looks too often to the pre-
vailing tax rate rather than to the
basis upon which the property is as
sessed.
Real Property Stable in D. c.
While its peculiar characteristics
are well known it may bear repeating
that the history of realty in the Dis
trict shows real property there to be
probably the most stable in the cities
of the United States. The District is
in noticeable contrast to many of the
largest municipalities in the United
States which are so dependent upon
and affected by the 'ups-and-doWns"
of huge manufacturing and other bus
mess concerns, which even at their
best have fluctuations due to varying
market conditions, failure of some
large firms, seasonal lay-ofs, chang
ing demand for products, etc. In per-
haps no other city is the mass of the
population so steadily employed. The
fact that the large personnel employed
in the various Federal agencies enjoys
a relatively level tenure, and expert
ences no seasonal lay-offs and rarely
any wage cuts, contributes to highly
stable economic condition. Present
indications point to an extension of
the civil service" which, if adopted,
rs rt; CT hi 1izo
ton.
High Rental Value Discussed.
A factor of prime Importance in
the appraisal of realty in the District
is the comparatively high rental value.
In the Cost of Living in SO Cities in
1895" (Stecker, Margaret Loomis,
''Inter-city Differences in the Cost
OF Living" p. g. housing in the
District of Columbia is rated at 100
per cent, with New York City next
at 877 per cent, and with the
neighboring city of Baltimore at 66.7
per cent. The primary reasons for
the high rentals in the District OF
Columbia are:
a. The recent increase in the cost
of construction.
b. The demand
C. The unusually high costs Of re.
financing for construction or purchase
c. The seasonal renting conditions
From the most reliable data obtain.
able Omitted States Federal Home
Loan Bank Review, November ane
December, 1896, and January. 1887
the cost of constructing STANDARD
house" in the District increased 12.!
per cent from December, 1885, to De.
cember, 1896. During this period i
was second only to Baltimore, which
showed an increase of 1873 per cent.
Percentage Of Increase in the Cost o
Construction of "Standard House.
Baltimore - 1873 S. Francisco 80
Wash, D. c. 1873 Buffalo --- 80
Milwaukee -- IA Louisville 1.3
Pittsburgh go rs Cincinnati 10!
New Orleans So Providence - 10.
Cleveland 49, 81 Newark - 0.6
Boston $3.50 34 st. Louis----1.3
Ind'polis ---3.2
Population Increase Shown.
The population of Washington. D
C.. has increased Steadily and thu