Evening star., 1943-01-09
Mortgage Bank Aide
Predicts Breakdown
In Properly Tax
War Has Indicated
That Burden Cont Be
Carried, MuIIenix Suys
Special Dispatch TO The Star,

Special Dispatch TO The Star.
CHICAGO, Jan. 9.-With about
IS per cent Of United States local
taxpayers-those owning real estate
now paying between 10 and 90
per cent Of the cost of local Govern
ment and many municipalities ap-
preaching serious operating prob
lens because Of wartime revenue
losses, the long-predicted break
down in the property tax Is prob
ably already here, Charles A. Null
lenix, Cleveland, president, Mort
gage Bankers Association Of Amer
lea. predicted today.
1T has taken the greatest war
IN our history to make q dent in
public understanding that real es-
tate, which represents less than .
fourth Of property wealth, cannot
continue to shoulder as high as 80
per cent Of total taxes. This is
particularly true now because of
unsatisfactory administration of
rent control. The greatly increased
costs Of municipal operation have
been borne principally by real es-
tate on which local governments
have. year after year, assessed a
liked charge of from 2 to 8 per
cent regardless of changing times
and condition." he said.
Tax Reform to Be Topic.
Tax reform will be a principal
topic OF discussion at the associa-
tion's f1rst 1943 mortgage clinic at
the Waldorf-Astoria Hotel in New
York January 13 and IA, Mr.. Null
lenix said. The meeting is being
sponsored IN cooperation with the
Northern New Jersey. Philadelphia,
Pittsburgh and Baltimore associa-
tions affiliated with MBA. John G.
thompson of Newark. an associa-
tion governor, and William A. Cur
tin. Hartford vice president for the
East, are in charge Of arrangements.
Mr.. Mullenix recently returned
Irom tour through Eastern States
studying wartime developments that
have a bearing on real estate fl
nancing and said he was struck bv
the approaching crisis in real estate
property taxation almost every-
where.
Il don't know Of single post
war problem that deserves more
serious study now than the property
tax. From all over the country
comes the complaint that taxable
property values are much higher
than true values and are gettinr
higher. In countless instances prop
erty is paying tax several times
that IN other sections where ex-
actly the same municipal services
are furnished.
Concept Little Changed.
What will be needed eventually
Is thorough study of what to ex-
pect of the property tax. To a large
degree, Our basic conception of the
property tax has changed little in a
hundred years when most wealth
was real property. A revolution has
occurred since then, but it has left
the property tax virtually un-
changed.
For example, will future educa-
ton continue to be financed almost
exclusively by local government?
VIII welfare programs become more
and more identified with the Ma
tional Government? Further, how
are cities and municipalities going
TO hnance street, sewer, water and
other improvements in the post
war period? In the past special as
sessments have been largely used
although not so much in recent
years. Special assessment financing
may return. but whether it does or
not, the property tax cannot be ex-
pected to do much of this Job"
Mr.. Mullenix advocated a Federal
survey to study and recommend a
scientific ALLEGATION of the various
tax sources between Federal, State
and local governments, as well as
placing Government income prop-
erty on the same tax basis as pri-
vately owned income property Local
property taxes must eventually be
placed on some basis by which the
tax levy will be In proportion to in
come value, he said.