Evening star., 1939-01-17

among all parties as to
what the proper level should be,
both for the District as q whole
and for individual properties. IT
and when the day of reckoning
comes, it may be necessary to lower
assessments in line with debated
values, but until that time arrives
there is no other adequate method
of gaging assessments and OF meet
ing the terms laid down by the
law.
From available information it may
be concluded that real property in
the District of Columbia is, in the
aggregate, assessed at or near its
full, market value. When sales
prices are chosen as a criterion, a
large sample is required to asure
accurate measurement, because of
the danger of being forced to rely
upon unrepresentative sales. Doubt
less the ideal of uniform, 100 per
cent assessment has not been
reached, but this goal is seldom, If
ever. attained. The efforts of the
assessors and the opportunity for
taxpayers to appeal unfair assess
ments are the best guarantees to
any closer approach to full value
Within the limits of the force at
his disposal, the District assesses
appears to be maintaining assess
ments as near the level required
by law as is possible.
EXEMPT PROPERTY INCREASES
The growth of exempt real prop
erty is phenomenon not confined
to the District of Columbia, al
though the national trend has been
greatly accentuated by the peculiar
circumstances attendant upon the
limited area and the overwhelming
significance Of Federal expansion.
The part which the Federal Gov
ernment has played in the narrow
ing Of the tax base is shown by the
fact that between 1880 and 1898
its holdings of land free from taxa
ton increased in value from $500,
600 900 to $343, 900 900 and the value
of its buildings rose from sits, 900, :
600 to $307 900 900. About SO per
cent of the entire taxable and ex-
empt real property acreage Qand
area) in the District belongs to the
National Government. 1t is appar-
ent that the problems created by
continued acquisition of real prop
erty by the National Government
will grow increasingly acute. Total
taxable property now amounts to
nearly $1,000 100000, against which
may be contrasted a valuation OF
$650,000,000 of Federal real estate
This category of exempt real prop
erty dwarfs the $62 1000 900 exempt
by virtue Of District ownership and
the 100000, 900 valuation placed
upon other real estate exemptions.
In an effort to evaluate the un-
usual significance attaching to Fed
eral exempt property in the Dis
trict, as compared with other tax
Jurisdictions, two independent esti-
mates of the excess over what may
be considered the normal amount
have been made. The Bureau OF
the Census has released figures on
tax-exempt property in So cities, in
cluding Washington, for 1896. The
ratio Of Federal property to total
exempt property is 806 per cent in
the District of Columbia, according
to these figures. The nearest city
in the array has corresponding
ratio Of 1919 per cent. Since only
Al of the other 81 cities reported
Federally exempt property sepa-
| rately, and because an arithmetica
average would be meaningless due
to the excess weight which woulc
be accorded the District, the mediar
or position average of the array wa.
taken to represent the group. Or
this basis. 2.9 per cent Of the exempt
real estate in these cities Is Fedora
property. Contrasting the Distric,
with the median, 1t is evident thai
if 29 per cent is normal, and the
District has 806 per cent, then 96.4
per cent of the exempt real estate
held by the Federal Government ir
the District of Columbia is in exces!
of the median.
Data obtained from q Fedora
agency indicate that the ratio of tht
estimated assessed value of Fedora
land to private taxable real estate
in 1887 was 3126 per cent In thu
District and O.95 per cent in the Al
States. Following the same methoc
of analysis as that used in the pre-
vious paragraph, 81 per cent of ex'
empt Federal property in the Dis
trict represents the excess over th'
national average. The close approx
nation reached by these two ap'
proaches to the subject lend author
ity to the observation regarding tn,
peculiar nature Of the problem O
Federal exempt real estate in tn,
District of Columbia.
The report proceeds to an analysis
of existing forms Of taxation in th'
District, their collection, admins
tration, etc.
PART iii. THE PROPOSED
TAX STRUCTURE.
TAXES RECOMMENDED FOR
REPEAL.
It has been shown In the preced
ing discussion that the tax frame
work OF the District fails to Civ
! ~