Evening star., 1953-12-08

OVuuuS VII W.
In Montgomery
Toxpoyers' Group
Offers Ways to Solve
Fiscal Problems
Ways to get more for less were
suggested last night to Mont
gomery County's State legisla-
tors-including a plan to stop
"free-loading" counties from
hogging State school funds.
The Montgomery County Tax
payers. Inc, which describes it
self as a fact-finding and analy-
sis group specializing on finance,
met with the lawmakers in the
Bank of Silver Spring.
The taxpayers also recon-
mended:
l, Blocking any additional
taxes that might be proposed.
g Balancing Montgomery's tax
setup by wooing property that
pays more in taxes than it costs
to serve.
Morris Allen, the groups full
time executive director, presided
at the session.
On the School-aid question,
he noted that Montgomery's as
Sessment difficulties are chiefly
due to the absence of a rigid
State insistence on uniformity.
Diminishing Ratio.
The higher a county sets it's
assessments, the less it gets back
in equalization funds" These
funds are designed to give poor
counties children educationS
equal to those in wealthier
counties.
But a number of counties have
low assessments.
Calvert County, for instance,
assesses a $4,000 home as being
worth only $2,500, while Mont
gomery assesses it as being worth
$1,000. Thus Calvert is repre-
sented on paper as being poorer
than it really is, in contrast to
Montgomery. And thus Calvert
gets more equalization" money
than it should.
Mr.. Allen said the State Tax
Commission should make its own
rating of assessments. The State
would select the median ratio
of assessments.
Eliminates Attraction.
After that, the State Depart
menJ of Education would calcu-
late equalization and school
building aid on the basis of that
median. It would not accept the
counties own figures.
Mr.. Allen said that, once the
assessments are equalized, there
would be no attraction for
county to have low assessments.
He emphasized that this re-
juggling would apply only to
school fund matters.
And the plan has political
merit, he said. He explained
this by pointing out that as many
counties stand to profit as stand
to lose.
Delegate Kathryn j. Lawlor,
remarked that this is a very
interesting proposition.
James R. Miller. Rockville law
yer and president of the taxpay-
erS' group. pointed out that the
State Tax Commission already
has the power to enforce equal
assessment ratios.
Sees Enforcement.
His groups plan now makes it
probable that such enforcement
can be had. he said.
On the other recommended
tions, Mr.. Allen said Montgomery
is in trouble on taxes because
higher and higher levies are
needed to make up for the in
creases in "taX-deficit" property
He described this type as one
which pays less tax than the
county spends providing services
for it.
Commercial and light indus
trial properties more than pay
their own way, however, he said.
He displayed figures showing
IA per cent of Montgomery'S as
SeSSable base derives from resi-
dental realty.
81 for Each 80 Cents.
But the county spends 81 Serv-
icing such property for every 80
cents it gets from them, he said.
Commercial properties, making
up II per cent of the county'S
asSeSSable base, take only ST. to
serve for every $2.26 they con-
tribute, said Mr.. Allen.
And industry pays $3.50 in
taxes for every 81 in service. But
industry provides only 6 per cent
of the aSSeSSable base.
Apartments, furnishing a mere
3 per cent of the asSesSable base,
pay $1.08 for every 81 in services,
Mr.. Allen said.
1t is obvious, he said, that
Montgomery needs more COM
merce and light industry.
DR.. Homer Hoyt. the land
economist making surveys of the
Washington area, said statistics
elsewhere support the apartment
data.