Evening star., 1938-04-16
REAL ESTATETA
VIEWS RESTATED
Committees Suggestio7s as
to Limitations to Be Acted
on by Board.

4 review Of the whole question Of
real estate taxation looking to q
strengthened movement In the various
States for such moderniyation Of the
tax structure Is will give effective real
estate tax adjustment was made by the
committee on real estate taxation of
the National Association of Real
Estate Boards at a meeting in Chicago
just closed, attended by representatives
OF member boards OF the association
and Of State real estate associations
from Maryland to California and from
Minnesota to Texas.
The conference, an experience meet
Ing Of the States represented, re-
studied In detail the proposals for
State action for real estate tax relief
suggested by the national association
in 1893, major elements Of which have
been adopted in q number Of States,
and formulated a proposed restate-
ment Of major objectives for immediate
vigorous action reiterating the asso-
cations stand for: Cd An overall
4AAAAAu VA VAC WA 3utC WlllIll Ildy Uc
levied against real estate: (2) valua-
ton Of real estate for tax purposes
primarily on the basis of its produc-
tivity; 90 the drawing Of school costs
from wider tax base, and a. State
control Of local tax levies and bond
Issues, under proper safeguards.
Board Will Take Action,
The committees proposals, aimed to
strengthen the whole movement for
tax modeGnization, are expected to be
brought before the board Of directors
Of the association at their coming
meeting in Richmond, Va. May 5, a
meeting that will Immediately precede
the Central Atlantic regional confer
ence Of realtors there.
When you put a ceiling on the real
estate tax rate by an overall limitation
you have taken very decisive step to
spread the tax base. and you relieve
by 23 per cent to IS per cent the
share which the farmers and home
owners Of the land. together with
owners of other types of real prop
erty. are now paying beyond their
riehtful obligation" Myers Y. Cooper.
Cincinnati. former Governor Of Ohio,
president Of the Cincinnati Real Estate
Board and chairman of the committee,
said in putting before the meeting
Ohio's experience with the ! per cent
limit on the real estate tax rate, which
has been made q provision OF the
States constitution.
Nine States, following this general
program, have fixed such a limit on
the tax rate. This is one of the
most effective ways of making the
taxpayers dollar look and act in
public service exactly like it looks
and acts in private enterprise.
1.-THE l0-mill tax limitation reduced
the tax on real property the first year
after 1t went into effect in Ohio ap-
proxinately s37, 100000" he said In
1894 about $l70,000000 of the s293,-
900 900 collected as tax revenues came
from the real property tax. In 1895
real estate paid sl65 100000, with the
total tax amounting to s38o.00o, 900.
Had the 1o-mill limitation not been
in effect, 1t is apparent that large
imposts Of additional taxes would have
fallen to the lot of the real estate
owners Of the State.
Government Not Impaired.
"Nor were essential governmental
functions impaired by the constitu-
tional tax limitation. The various sub
divisions were unable to retrench to
such an extent that they could alb
sorb the reduction in its entirety, nor
were they expected to do so. Other
sources of income were developed.
When the per cent limitation was
adopted, it meant the assumption Of
certain school liabilities by the State
and it was necessary to establish .
school foundation to aid our educa-
tioral system, which has been done.
Whatever taxes may be necessary
beyond the amount normally provided
BY real estate for the conduct Of gov
ernment, the burden Is going to be on
those who cry for more funds to prove
that they are needed. and that means
the forcing Of economy, less waste
The taxpayers have an easy check-up
on extravaganza"
Establishing the value Of real prop
erty for tax purposes according to the
utility or income Of the property is a
proposal of tax reform Tar reaching
in its implications" Ohio's ex-Gover-
nor added. The benefits which would
come under this plan are manifold
When you think Of the number of
that were forfeited during
the last depression. this becomes
clear. The number would have been
inconsequential II the properties had
been valued on the basis Of income.
AZ the income went down the carry
ing charges Of taxation would have
gone down with 1t.
THE method Of valuation the asso-
citation suggests Is thus an insurance
against adverse economic conditions,
1t should be stimulus to real estate
ownership. It means the payment Of
taxes on the basis Of ability to pay in
accordance with income"