Evening star., 1937-06-16


slonal sessions of the Federal Govern.
ment bring into the District, in addi-
ton to the members of Congress anc
their staffs, numerous temporary
tenants, parties interested in par.
tlcular legislation, advisers, etc. These
groups usually rent from the late Fal
through June of the following veal
only; thus the landlord must secure
from these limited occupancies a full
12-month rental.
Many Surveys Made.
The last 100 years have seen &
score of surveys made of the fisca
relationships of the Federal and the
District of Columbia governments
each treating more or less fully the
relative amount which should be con.
tributed by the Federal Government,
toward the cost Of operating the Dis.
trict and the amount which Wouie
represent a fair and equitable share
OF taxes on the part of the residents
and taxpayers Of the District. The
principal reports from 1884 to 1885,
have been made by the following sur.
veyS:
1884, Stoddart; 1885, Southard; 1886
Tyler: 1872, Starkweather; 1874, Nor.
ril; 1874, Poland; 1875, Hunton; 1886
Babcock; 1892, johnson; 1896, Brown;
1915. Chiffon; 1923, Phipps; 1929 tc
1880, Bureau of Efficiency; 1881,
Mapes; 1885, Treasury; 1886, Jacobs
Attempts have been made more o,
less sincerely in nearly all of these re-
ports to arrive at an equitable basis
for the levying of property taxation.
The Jacobs Report.
In the latter part of 1886 there was
appointed an advisory committee or
fiscal relationships studies composed
of George McAneny, chairman: Clar.
ence A. Dykstra and James w. Martin
with j. L. Jacobs acting as director o
the survey. Currently it is known a
the Jacobs survey. This committee
has finished its work and submitted
its report, which treats in detail al
phases of the fiscal relations between
the respective governments. An effor
was made in this report to determine
definitely the average ratio of assessed
to true values for real estate in the
District of Columbia One of the vari.
Gus methods used to determine thu
ratio figure was the actual appraisa
Of properties made in accordance with
fixed rules. principles and regulation!
outlined by the American Institute O.
Real Estate Appraisals and the Society
of Residential Appraisers. The rathel
limited appraisal of Is properties re-
vealed a ratio of approximately 70 PEI
cent for small residential properties, g.
per cent for multiple-fam and apart.
ment houses and 81 per cent for bust
ness properties.
Another method used was "sales,
which, briefly summarized, shows huc
tuations between 1929 and 1885 in tn,
three classes of realty listed-dwellings
apartment buildings and busines
properties-with an average assessment
ratio of 1855 for homes, 96 per cent
for apartments and 966 for business
properties, or an average of 92O2 pc
cent for the properties chosen. For thi
comparison there were selected 81
properties in 1884, 96 properties il
1885 and 79 properties in 1886.
c. E. Rightor, in his "Comparativ.
Tax Rates and Assessed Valuations,
published annually in the Nationa
Municipal Review, has assigned to tn,
District of Columbia an estimated as
sessment ratio of 100, arriving at thi
figure by consultation with officials anc
private parties of the District of Co
lumbia. Obviously discrepancies exis
among the previously published ra
tios, therefore an attempt has beel
made in this study to approach a NOR,
exact ratio figure.
Assessment Ratio Here About 100 eo,
AS this present survey progressed
became apparent that the realty sit
uatlon in the District of Columbia pre-
sented an unusual picture. While ther
are variations in the ratios of assess
ment among individual properties an.
even among various sections of tn
District. yet on the whole realty is as
seSsed perhaps closer to 100 per cen
than in any other representative cit
in the United States. If further con
sideration were given to the eve
changing real estate market of recen
years and the probable supply an,
demand in the immediate future thi
ratio figure would appear still NOR
noteworthy.
Among various methods propose,
for determining the true value O
urban realty, the general consensu
OF opinion seems to lie between tw
schools of thought; one, proposin,
fair or normal market sales as the cri
terlon Of value, the other, holding 70
appraisals by experienced realtors, an
praisal firms and builders.
The normal market sales metho<
reveals that price at which propert
is bought and sold between a volun
tary buyer and willing seller no
Influenced by extraordinary condi
tions. The sale price would, accord
ing to this yardstick, reflect accurate
ly the value of that particular piec
Of real estate. The District law pro
vides that property should be as
sessed at its s.full value in terms O
money and the courts have inter
preted this value in the light OF tn
amount of consideration passing II
voluntary sale.
In the other method we find tn
value Of realty fixed by actual ap
praisals Of properties. An appraise
must consider primarily the purpps
Of the appraisal, which ordinarily l