Evening star., 1948-06-13
Dent Report to Congress Hits
Realty, Property Tax Increase

population of 250,000 or more, the
District of Columbia ranked second
with a per capita assessment of
$l,827, being exceeded only by New
York City which was $1,000.
This comparison was made on
the 1910 assessment and population
figures of these cities, as that year
is the last year on which we have
official figures on population from
the United States Census Bureau
The average per capita assessment
! of these 80 cities was SLIT, varying
from low of 1882 for St Paul,
Mimi. to S2,209 for New York City
! "A study of tax rates throughout
the country indicates wide vari-
alton in these rates. The only ac-
! curate way to compare real estate
taxes is to compare the actual tax
paid on identical properties with
out regard to the assessment or the
tax rate.
A rather recent survey made by
this Office in the adjoining coun-
ties of Maryland and Virginia to
! determine as best we could COM
parative real estate taxes paid by
the owners in those communities
and the owners of similar proper
ties in the District of Columbia
disclosed that in most cases the ac-
tual real estate tax paid in the Dis
trict of Columbia was higher than
that paid in Arlington, Prince
Georges and Montgomery counties.
Property Classified 3 Ways.
I'm order to give you more COM
prehensive picture on real estate
taxes in the District of Columbia,
will separate the types of property
into three categories: business prop
critics; apartment buildings; and
private homes.
Business Properties:
Decentralization of business is
now a source of great concern to
the taxing authorities in most
American cities. The downtown
business area in the District of Co.
lumbia, bounded by Fifth and Nine
teenth streets and Pennsylvania
avenue and N street, comprises 1.7%
of the entire taxable area of the
District. Real estate taxes paid by
the owners OF property in this area
constitute 21qo of the entire real es-
tate tax Assessments in this area
for the fiscal year 1948 were in
creased by $50 100000 over that OF
1947 and in addition thereto the tax
rate was increased from $1.75 per
S10O to $500 per $100 A store in
this area operated by a chain store
organization is located on land as
sessed at $3.50 per square foot
whereas the same organization in
operating one of its stores in the
Metropolitan area in Maryland To-
Gated on land assessed at SIS pei
square foot.
Although the real estate tax paid
in the District of Columbia is con-
siderably larger than that paid in
Maryland, the gross sales of the
store located in the District are con-
siderably less than the gross sales OF
the store located in Maryland. Prior
to the war real estate taxes on down.
town commercial property were
equivalent to approximately $50
of the yearly rental: whereas at the
present time this percentage has in
creased to approximately 1870 and
in some cases as high as 209o due
primarily to increased assessments
and the recent increase in the tax
rate Within the past year va
tcancies in commercial property have
appeared within the downtown buSl-
ness area and there are some Of
flee buildings in this area which
have vacancy of from 20go to 500
and few at l00fo.
"The District of Columbia has not
suffered the effects of decentraliza-
ton to the extent experienced by
other cities, due principally to the
location of Government buildings
in the downtown area; however
business establishments have con-
structed and are now contemplating
the erection of stores in the ada
cent counties of Maryland and Vir-
ginia in order to seek business in
these expanding areas. Because OF
these conditions I believe that an
increase in the District real estate
tax would further aggravate decen-
tralization: and therefore, be un-
wise at this time.
Burden on Apartment Owners.
Apartment houses:
Substantial increases were made
in the assessed valuation of large
apartment houses, which together
with the recent increase in the tax
rate, has placed an additional bur-
den ON the owners of these proper
ties. Maintenance costs have great
ly increased so that further in
crease in taxes would necessarily
result in a lessening of services to
| tenants as well as a curtailment in
normal repairs to the building IN
order to retard depreciation.
Private homes:
For the fiscal year 1948. 20 per
cent increase in the assessed valua-
| ton of improvements was put in ef-