Evening star., 1938-05-21
REAL ESTATE TAX
DRIVE PLANNED
New Moves for Equitable
5 Treatment Is Sought
by Directors.

tors at their recent meeting in Rich
mond Va, took three important steps
expected to strengthen the whole
great movement for modernization of
State and local tax structures to give
real estate a more equitable tax treat
ment. The directors:
/. Affirmed, in five-point platform
of national objectives, basic principles
for State action that would give
effective real estate tax relief.
The platform restates and clarifies
principles adopted by the association
in 1888 as suggested action and since
then adopted in large measure in
number of the States.
2. Approved proposed real estate
&aX bureau to be established by the
association, whose function it would be
to assist State groups in planning
action through the courts or through
legislation in line with the national
program.
3. Authorizing a broadening of the
associations Committee on Real Estate
Taxation by inviting representatives
of other national groups interested in
bership on the committee.
Principle Effective.
The national conference of April s
set up to restudy the associations
program of proposals for State action.
was called by its Committee on Real
Estate Taxation made up of represent
atives of member real estate boards
in 456 cities and of one representative
for each State. It made its recon-
mendatlons in the light of first-hand
reports from % States where tax mod
ernlzatlon movements are now active
Basic principles for tax adjustment
found centrally important after much
experience and restudy now go out
with tremendous new importance.
Principles set forth are as follows:
!. We propose: That each State
and Territory of the United States,
by constitutional amendment where
possible, otherwise by statutory enact
ment. specifically limit the total
amount of taxes which may be levied
against any parcel of real estate with
IN any one year, such overall limit
to be fixed percentage of the true
value of such parcel of real estate,
preferably l per cent.
2. We propose: That school costs
be drawn from a wider tax base
through shift of these costs to the
State government. which can feasibly
levy on many sources of revenue other
than real estate
and Territory of the United States so
amend its tax-assessing laws and pro-
cedures that the taxable value of real
estate Shall be computed on the basis
of its average annual production of
income. such average to be computed
on a quadrennial basis: and in the
case of oWner-occupied properties
production of income" shall be in
terpreted to mean the income such
properties would produce if on the
rental market: but in the case of
unimproved land there be substituted
for the present ad valorem taxes a
system of proportionate taxes for the
specific services beneficial to such
land, based on a percentage of what
the tax would be if adequately i'm
proved.
Downward Revision.
a. We propose: That each State
and Territory of the United States
shall establish State or Territorial
agency in which shall be vested 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 en-
tirely; such findings to be binding
upon local taxing authorities unless
reversed by direct vote of the tax
payers affected by the proposed levies
or bond issues.
5. We propose: That a vigorous
attempt be made continuously in the
meantime to bring about economy
in government expenditures. local,
State and national We believe there
Is no permanent solution to the rising
cost Of all types of government in
this country except as result of in
creasing efficiency in administration.
rigid economy in expenditures and the
constant and unrelenting elimination
necessary costs.
Myers Y. Cooper Cincinnati, former
Governor of Ohio, chairman of the
National Committee on Real Estate
Taxation. addressing the Central At
lantic Regional Conference of the as
sociation at Richmond following its
directors meeting. said:
tWhny1 will
or tax limitation on property you
have taken a very decisive step to
spread the tax base and relieve by %
to 25 per cent this cost of local gov
eminent which the farmers and home
owners of the land, together with
owners of other types of real property,
are now paying, beyond their rightful
obligation.
The United States is the only
principal nation that continues to
look to the real estate property tax
for the major portion of the revenues
for local government The l0-mill
tax limitation now in effect in Ohio
reduced the tax on real property the
first year after it went into effect by
approximately $37,500000.
Our proposal that school costs
be drawn from a base wider than
the real estate tax should reinforce
State and local educational programs.
Throughout the Nation it is pretty
much the same story. We have gone
on with an archaic system compelling
real estate to carry SO great a share
of the tax cost of school financing
as to cause breakdown in sufficient
receipts to meet adequate educational
requirements
The associations proposal, while
not disturbing local control of schools
or local school standards, is that
schools should be in larger measure
the financial responsibility of the
State, which can draw from sources
Of taxation other than real estate
alone.