Evening star., 1938-03-26
AIMS ARE MAPPED
|F0R TAX SESSION
William |. BeaIe Is Named
to Represent Realtors
of D. C.. at ParIey.


estate taxation called for Chicago
April by the Committee on Taxation
Of the National Association of Real
Estate Boards. Joseph w. Catherine,
Brooklyn, president of the association,
today announced appointment to the
national committee of William l..
Beale, who will represent the WASH
ington Real Estate Board. Mr.. Beale
IS real estate officer of the American
Security and Trust Co.
Former Gov Myers Y. Cooper Of
Ohio, chairman of the committee,
states that the conference, in which
the American Farm Bureau Fedora
ton, the National Grange and the
National Association of Building
Owners and Managers have been in
vited to participate, will center on the
question Of best present action to
achieve readjustment of the real estate
tax system to just and economically
sound basis.
"A system which levies three-fifths
OF the total costs of local. State and
national governments against COM
modify which produces only one-fifth
of the total national income is mani
festly illogical, unfair and dangerous,
he says. yet that is the position of
real estate today"
Legislation Urged.
To furnish fulcrum on which leg
islative levers can shift the entire tax
structure to broader base, the Ma
tional Association of Real Estate
Boards, after six years of study of the
tax structures of the 48 States, adopted
q program of suggested action for
every State outlined in statement
just issued by the committee, as
follows:
l. We propose that each State and
Territory adopt constitutional
amendment specifically limiting the
tax on real estate for all purposes to a
fixed percentage of its true value.
We suggest that the limit should not
exceed 1A2 per cent. This, in effect.
would be equivalent to an income tax
OF approximately Is per cent, which is
surely all that real estate should. in
equity, be called upon to pay. The
average real estate tax at present is
nearly three times this amount.
2. We propose that in valuing real
estate for tax purposes its income
should be the basis for computing It's
assessed value.
At present the general practice in
tax assessing is to consider three fac
tors to arrive at the value" of the
property: Cd Reproduction costs
minus depreciation; CD comparable
sales in the neighborhood; (3) how
much money do We need to raise? We
suggest that the important factor is:
How much money did that piece of
real estate earn? Both the United
States Supreme Court and State Su-
preme Courts have upheld the prin-
ciple we advocate
Assessments Opposed.
8. We propose the drastic restriction
OF the use of the special assessment as
a means of financing new public i'm
provements and the ultimate abolition
Of the special assessment laws.
We suggest that before any improve
n1ent to be paid for by special assess
n1ent shall be undertaken there shall
be required the written consent of a
majority of the property owners and
representing more than half of the
real estate area which 1t is proposed
to assess.
4. We propose that the costs of
maintaining State minimum require
ments in public schools shall be trans
ferred from the local units of gov
ernment to the State government, and
that Federal financial aid be invoked
to accelerate such action.
The educators themselves have
taken the lead in this movement. In
some States, and one of our territories,
the entire cost of State-reuuired
schools has been assumed by the
State or territorial unit of government.
"a report is now before Congress
from President Roosevelt's Advisory
Committee on Education recon-
mending expenditure of 1855, ,0o0,-
600 by the Federal Government in
the aid OF schools in the various
States.)
Until recently real estate has borne
30 per cent of the cost of education
IN most Of the States.
Gasoline Tax Uses.
5. We propose that funds obtained
BY State governments from gasoline
and motor vehicle taxes should be
used for the maintenance and con-
struction of streets in municipalities,
as well as for rural highways.
This principle is now coming into
general acceptance We suggest that
the ALLEGATION Of such funds to city
streets should be made first to the con-
struction, improvement and mainte-
name of arteries and subarteries which
coordinate with county and State
highway systems.
6. We propose that there shall be
vested in State agency the right
upon appeal to review any proposed
tax levy or bond issue and to revise
these downward, or, in the case of
bond issues, to veto them entirely;
such findings to be binding upon the