Evening star., 1941-01-17
Tux-Exempt Property

SSN
Statistics on value of tax-eXempt
real estate in the District, such as
submitted by the Commissioners
yesterday in compliance with Sen
ate resolution, are helpful in under
standing the nature and proportions
of this problem in the District. But
in themselves they are not conducive
to any solution of the problem, and
unless understood, are apt even to
prejudice attempts to reach Solu-
ton. When an assessed valuation"
is given to Federal property, and
from that value a mythical yield in
taxation is computed, the confusing
and misleading idea of taxing the
Government is injected. On that
ground alone the statistics are some
times condemned as meaningless.
Senator Overton, of course, re-
jected at the outset the theoretical
valuation of Federal property as an
element in his proposed formula for
an annual measurement of the Fed
eral payment to the District. In
stead, he computed the ratio of tax
exempt Federal acres to the total
land-acreage of taxable property,
including as Federal property about
half of the park acreage as indicative
of the relatively excessive amount of
park lands in the National Capital.
In 1899 this ratio amounted to about
20 per cent, and, under the Overton
formula, the Federal payment would
have been about 20 per cent of the
general fund-or about S8,000000.
The assessor should now furnish
the figures, brought up to date, on
the ratio of tax-exempt to taxable
acres. This is the significant figure
in connection with the OVerton
formula. 1t would doubtless show
little change in the 1889 figures, but
would form the basis for Senator
Overtons proposed application of his
formula to the District bill this year.
In connection with the figures pre-
sented yesterday, however, there are
some interesting comparisons. In
1929-30 Federal tax-exempt realty
in the District was valued at S478,-
7O6,210. The figures submitted by
the Commissioners yesterday show
this figure has increased to $685.
O71,457
Taxable real estate, in the same
time, has increased in assessed value
from S1,182 ,463 ,345 to ST, ,237 ,937,O85.
While total taxable real estate, in
other words, has increased $55, 5,463,-
TAO, Federal taX-eXempt real estate
has increased $189,365,247.
The Commissioners are exploring
the possibilities of taxing some of the
private - or non governmental
property which is now on the exempt
list. In this connection there is
another interesting comparison.
This property was valued in 1888 at
$104,507022. The statistics sent to
Congress yesterday show current
NdludGlOlI VI 911l, 81, / I5--d SuUSGdll-
tial increase in two years. The
Commissioners may find it possible,
perhaps with the aid of new legisla-
ton, to tax some of this property.
But the great majority of it, COM
prising embassies and legations, edu-
cational or religious property, is
clearly taX-exempt and will yield
nothing, no matter how hard the
Commissioners may squeeze.
As in the case of the Federal tax
exempt property, however, the myth
ical valuation of this non-govern-
mental property for tax purposes is
helpful if the purpose is understood.
That purpose is not to tax property
which clearly is exempt, but to indi-
cate the vast amount of property
which, because this is the Nations
Capital, is located here but which
contributes nothing in tax revenues
to support of the District The ratio
of tax-exempt to taxable property in
the District is far in excess of that
found in any other city of the
country.