Evening star., 1940-03-27
Officials Defend
Decrease in Really
Assessments Here
Valuations Too High
Before 1884, Budget
Hearing Is Told

S~NSSA
Hearing Is Told
Members of the House District
Appropriations Subcommittee voiced
"amazement" on finding that realty
assessments of taxable properties in
the District now have lower total
than they had eight years ago, it
was revealed today with publication
Of hearings on the 1941 municipal
budget.
Assessor Edward A. Dent and 10
v. Morgan, sole member of the Dis
trict Board of Tax Appeals, both
. were questioned closely by various
members of the Caldwell committee
for explanation of the lack of con-
siderable rise in assessed values.
The two officials, with some help
from Maj. Daniel j. Donovan, Dis
trict auditor and budget officer,
declared their belief property assess
ments here had been held too high
prior to 1884, that some properties
still were assessed at more than
the sales value, that land and i'm
provements of great value had been
taken out of taxation by acquisition
by the United States.
Tables Put in Record.
Apparently not satisfied, Subcom-
mittee Chairman Caldwell inserted
into. the record a series of tables
showing comparative assessment
figures between some years in the
past decade, figures showing the
numbers and values of new i'm
provements, estimated values of
properties taken out of taxation and
comparisons between tax rates and
assessments here with those in II
other cities of populations between
100000 and 100000.
The latter figures were taken from
a table compiled by the Detroit Bu-
reau of Governmental Research from
; data furnished by city officials and
members of the Governmental Re-
search Association, the report said.
Figures which particularly drew
fire from committee members were:
That assessments for land and build
ings totaled ST 226,OO0,0OO in 1882.
whereas the sum was $1.211 900 900
for this year Assessor Dent report
ing the total for the next fiscal year
would be some ST 228,000,000); that
whereas realty taxes in 1929 amount
ed to $19,346 984, the total for 1899
was but relatively little higher,
being $2O,918,546.
U. S. Property Value Rises.
In connection with the latter
point, it was explained that the tax
rate in 1929 was $170 per 500 of
value as against SITS in 1899. Mr..
Dent also explained that the valua-
ton of United States property,
tax exempt, was S500000, 900. whereas
1t now has been increased to
1863 100000.
When Mr.. Caldwell asked Mr..
, Dent whether he took the position
that the value of privately
land in the District was reduced
nearly S50O00.OOO between 1882 and
1899, Mr.. Dent replied: Il would say
there has been a reduction in value
over that seven-year period, be-
cause in 1882 it was generally con-
' sidered and known that assessments
were too high. That is the reason
a general reduction was made in
1884 by the Board of Equalization
and Review. They were swamped
with appeals and in great number
of cases could not justify the assess
ments based on the sales
Mr.. Dent drew distinction be-
tween assessments for those years
and the real values of the properties.
voicing belief the real values had
not declined, but that assessments
were lowered because it was found
the assessments had been too high
When Mr.. Morgan was called to
the stand and asked to give his
opinion on property values and
assessments, he declared: MY eX-
perience on the Board of Tax APP
peals of year and a half is that
the property in the District is
assessed at from 120 to 125 per cent.
and in some instances $50 per cent
of it's value. " I think even at
forced sales it is assessed 100 per
cent of it's value. In business Sec
tions, not at forced sales, but at an
ordinary sale. The residential prop
erty is assessed, should say, slight
.ly under its value
Rabaut Questions Morgan.
Representative Rabaut, Democrat,
of Michigan sought to question Mr..
Morgan as to whether the program
of the Federal Housing Administra-
ton had had a tendency to de-
crease values or tendency to freeze
real estate values in home building,
but Mr.. Morgan said he did not
know the answers.
Asked to specify areas of the city
he felt had lesser valueSnow than
In 1882, Mr. Morgan mentioned a
business section of Ninth street
He cited the case Of one Ninth
street building, originally sold for
$4,000, on which the District had
reduced the assessment to $4,000
On appeal to the Board of Tax
Appeals, Mr.. Morgan said, he found
the assessment should be reduced to
$4,000, land then I thought I was
roing too high" he added.
committee members brought out
that the Board of Tax Appeals hac
had but about 10 realty assessment
appeals out of a total Of some 800