Evening star., 1940-05-02
Tax Reassessments
Said 10 Ease Load
Of County Borrowing
Prof. Walker Speaks
Before Kensineton
Civic'Leogue

Resistance to assessment OF prop
erty at its full cash value can work
to the detriment of individual tax
payers and to the county at large,
William Paul Walker, professor of
agricultural economics at the Uni
versity of Maryland. told the Great
er Kensington Civic League last
night.
Mr.. Walker said he had observed
that, among counties of equal tax
able wealth per capita, low assess
ment, in relation to value, generally
results in high tax rates and extern
sive borrowing.
Citing Montgomery County's re-
assessments of 1922 and 1927, which
resulted in increases of q per cent
and 20 per cent, respectively, in the
taxable basis. the speaker pointed to
this as an indication that property
In the county has been underas-
sessed for long time.
Would Reduce Borrowing.
A more complete assessment OF
property since 1922 would have pre-
vented some of the county's bor-
rowing, including the refunding of
about $2,250,000 in bonds coming
due since 1888, Mr.. Walker said.
Had property been assessed at from
70 to Is per cent more than the
prevailing assessments from 1922 to
1889 the county would have realized
tax revenue of $1,000 900, he said,
adding that it is obvious that the
practices Of inadequate assessment
prevent the county from function
Ing properly without borrowing.
Discussing the subject, Sound
Fiscal Policies for County Govern
ment," Mr.. Walker said that some
bonded debt may be necessary and
advisable, especially in a county
which has characteristic growth
like that of Montgomery County
However, he said, proper planning
and control of debt and adequate
property assessment go hand in
hand. County governments should
guard against a situation where
debt requirement assumes more
than one-half of the total annual
ievies against properties support
ing the issuance of the debt.
The speaker said multiplicity of
special taxing areas in MONTGOMERY
county is largely responsible for an
excessive cost Of administration in
county government. As possible So
lutions, he suggested:
Cd A countrywide tax rate for
the support of all governmental
functions, excepting water and
sewer services; CD One or two
metropolitan districts with a tax
rate different from the rural tax
rate, based on differences in func-
tional services, or 90 Special tax
Ing districts receiving special func-
tio,fal services to pay the admins
tration and tax collection cost in
cident to keeping such record sep
arate.
Income Tax Changes Urged.
Mr.. Walker also discussed the
Maryland income tax situation, call
ing attention to some of its virtues
and defects and suggesting possible
changes in the law. For one thing
he said, the tax should be made
more convenient to pay. At present,
the entire tax must be paid in
March, when various other taxes
fall due, he said.
insufficient attention also was
given to the rate structure. Mr..
Walker said, suggesting that a bet
ter arrangement might have been to
impose 2 per cent tax on individual
business income, salaries, wages and
commissions; per cent on rents
and annuities; per cent on interest
and royalties, and 6 per cent on cap
ital gains and dividends. He said
there is also room for adjustment
In the method Of calculating the tax.
Determination of tax domicile and
the question of personal exemptions
also should be given further consid-
Grafton. he said