Evening star., 1939-01-17
PART III. THE PRESENT
TAX STRUCTURE.

Since 1902 changes in the tax
structure of the District of Colum-
bia have been notable for their alb
sence. AS result of the static con-
dition in which its taxes have re-
mained, the numerous alterations
which have been made in State and
local tax systems have had little
effect upon the situation in the Dis
trict. While States and their con-
stituent municipalities have been
struggling to adjust tax burdens
more equitably and to cope with the
problems attendant upon the de-
mand for increased governmental
services, the District has continued
to rely upon forms and methods of
taxation belonging to the last CEN
tury.
The tax on real estate furnishes
about half of all the tax r4enues of
the District of Columbia and is
veritably the backbone of the pres
ent tax system. Traditionally, 1t
has been relatively an even more
important source of revenue than it
now is, both in the District and else
where. Its importance has declined
as new sources of revenue have been
| tapped to meet the ever-growing de-
mand for increased governmental
services.
The assessed value of taxable real
estate in the District of Columbia
has risen but slightly during the Pc
riod 1928-1938. The present total
of $1,171 ,000, 900 is only 48 per cent
above the assessment for 1928. While
the total has changed but little, this
expresses the result of movements
in opposite directions of land and
building assessments. The assessed
value of land declined from $685.
100000 to $480, 900 900 (about 10 per
cent? while Improvements rose from
$685., 900 900 to $691, 900 900, a gain OF
18 per cent. AS a result, improve
ments now constitute roughly so
per cent of total assessments. The
reduction in the total assessed value
of taxable land is explained by
scrutiny of the acreage exempt from
taxation.
Delinquency No Problem.
Real-estate tax delinquency is not
a serious problem in the District OF
Columbia. The statement of the
collector of taxes shows total unpaid
balances of over $2,500,00O. How
ever, $4,000 900 Of this sum is repre-.
sented by the unpaid taxes for the
fiscal year 1888. Past experience in.
dicates that nearly all of this will bt
retired during the fiscal year 1889
In recent years, approximately pei
cent of the levy is unpaid at the clos'
of the year, but only about o.5 PEE
cent of the levy is due at the close
of the following year.
Real estate in the District of Co.
lumbia is assessed at or near its ful
value as judged by market condi'
tions. The recent Jacobs study re-
ported for 1885 assessments ratios a.
follows: Single-family dwellings, T.
per cent; two-family dwellings, Z,
per cent; row houses, SO per cent
multifanily apartments, 81 per cent
and store properties, 81 per cent
These ratings were based on ap
praisals of 76 sample properties. TIL,
adequacy of the sample and the con
clusions drawn therefrom are ques
tionable. An average, weighted &C
cording to values, gives ratio Of 81
per cent.
ASSESSMENT RATIOS.
The Detroit Bureau of Municipa
Research publishes annually an esti
mate of the assessment ratios TO
certain cities. The District OF
Columbia Washington has beer
rated 100 per cent in recent years
with the exception of the 1887 re
port, which shows 80 per cent. Tn
bureaus estimated ratings resul
from replies to Questionnaires sen
to research bureaus, chambers o
commerce, city controllers and othe
officials In a position to give &C
curate information. The ratings 70
the District of Columbia for tn
past three years have been base,
on information obtained from tn
Washington Taxpayers Association
The 80 per cent ratio for 1887 is tn
mean of 100 per cent reported TO
business property and 80 per cen
reported for residential property
Sales records compiled by the Dis
trict assessor over the period 1913
to 1896 show 9,795 recorded sale
, during this period. In the aggre
gate, the compilations reveal
ratio of assessed to sales value O
l04 per cent. The ratios for certaii
areas within the District indicat
a range of 68 to 121 per cent, bu
it must be remembered that onl
when the sample is large, such q
the total number of sales in thi
case, can one be assured that tn
effect Of unrepresentative sales Wi
be minimized, If not eliminated.
ARGUMENTS ON HIGH PRICES
There are those who argue tina
, speculation in real estate in the Dis
. trict of Columbia has forced price
to abnormally high levels and tina
although assessed values closely ap
proximate sales values, indicatin
I full assessment. the sales price
themselves are inflated. The argu
, ment Is based on some intuitive ap
T prehension which foresees eyentus
slump In DficAk with a c,,nsao,iay,