Evening star., 1939-06-11
24-BiI|ion Value
Drop Intensifies
City Cries for Aid
Yeor-by-Yeor Fall
Since 1882 Noted
In Census Survey
1y the Associated Press.

EV the Associated Press.
A S24,00o.000.0O shrinkage in the
assessed valuations of property sub
ject to State taxes has been found
in Census Bureau study covering
the period from 1882 to 1887.
On a national basis, the shrinkage
amounts to l4.9 per cent. 1t helps
to explain several of the tendencies
in Congress and presents a new
view of the plight of the cities and
counties with their clamoring RELIEF
and unemployment problems.
The members from several of the
States that are hard-pressed for
funds are endeavoring to scrap the
old $3.50 formula by which the
Federal Government shares with
the States in the expenses of old-age
pensions and several other under
takines under the theory that the
two have Joint interest in them
Several factors are regarded by
tax experts as having played part
in developing the decrease. They
note that assessed values have moved
gradually down. year by year, dur
ing the period covered. In some cases,
rates have moved up in an effort to
off the taxes paid. In others. the
cuts we're made to give tax relief
to hard-pressed citizens
Another factor has been the adop-
ton by quite few States of home
stead exemption laws, under which
property up to a certain valuation,
ranging from 81 900 to $4,000. would
be regarded as a homestead and eX-
empted from taxation. That par
tally accounts for the decreases in
some States. but not in others that
have such laws Half a dozen States
have passed such laws since 1887,
which would leave the chart un-
affected.
The general effect of the reduc-
ton is felt more sharply by cities
and counties than by the States,
themselves. however. Five States
have no general property taxes for
Statewide purposes. All of the
funds from such taxes in these
States 60 to the cities and counties
Many of the other States leave the
bulk Of their collections from these
taxes in the cities and counties.
Sales and motor fuel taxes have
long since become the chief revenue
producers for the States
Only two States showed an in
crease in valuations. These were
Florioa, which went through a sharp
def1ationary period after its boom
Of the l920s and has had a period
of rising values since, and Iowa
which has changed its base of as
sessment.
Arizona, with 466 per cent drop
was highest. The drought States all
stood high, Oklahoma at 303. South
Dakota, 314, North Dakota. AT:
Kansas, 259 The Middle Western
farming States of Illinois, Ohio and
Michigan were also among the heavy
losers, with drops Of 29l, BAT and
247, respectively.
The same governmental effort to
tighten taxes on protesting citizens
that helped to bring about the drop
IN assessments made itself felt in
different direction last week in the
House Ways and Means Committee.
New stress was laid by Treasury
officials on the need for a revision
of the business taxes to take away
levies which they said were stand
ing IN the way of business recovery.
In spite of the protests of some of
Its members, the committee agreed
to restrict its hearings to the recep-
ton of evidence on corporate taxes.
A few members had wanted to go
into the income tax situation. but
others had warned that this would
take too long.