Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-04
Fifth Of o Series

Fifth OF Series
hiking the rate 10 cents on each
500 assessed valuation. To the
property owner this has a famil-
lar ring, for during the past Is
years the rate has risen 26. per
cent.
Whether Congress will adopt
this as part Of the combination
answer it must find for the city's
financial problems is uncertain.
Not Happy Solution
A special tax-hunting COM
mittee Of District officials has
recommended it to the Commits
sioners as q possibility. It is q
solution. however. which they
lare not eager to adopt-for sew
eral reasons.
One is that the real estate tax
rate, along with that on business
personal property. is the only
escape valve for the Commits
sioners in case Of financial dis
aSter.
Under the law, they cannot
spend more than the city takes
in. II necessary. they must raise
the rates on those two taxes to
cover any shortage-and there
are periods of the year when
Congress is not around to handle
the problem.
They are hoping. therefore.
that q drive to equalize real es-
tate tax assessments-increasing
the total yield from real estate
taxes-might produce as much
money as simple boost in rates.
1O-Year Task
Records for assessment work
done before the early 1940s are
conceded to be in bad shape.
Assessor James L. Martin has
estimated. however. that with
three more assistant assessors
a total Of 13--and the necessary
staff to back them up, he can
complete reassesSment of the
city In 10 years. To give him q
start on the project--which
should produce q year-hy-year
rise In total taxes--the Commits
sioners are ready to ask for some
$4,000 to hire the additional
staff.
On the simple matter OF rails
ing the real estate tax rate, some
Spokesman for property holders
question whether the saturation
point has not been reached.
Simply stated, the question Is:
How much will businessmen and
hon1e-oWners stand before they
join Others who have taken to
the suburbs?
What irks opponents most Is
the fact that real estate already
is bearing the largest share of
the burden. Thirty-one per cent
Of the entire general fund, or
| $40. $50, 900, is estimated as COM
ing from real estate this fiscal
year. 4
A 10-cent increase might not
be considered q knockout punch
in itself. But those who cry
Foul" point out that realty In
creases would be coupled with
others like sales and income
taxes already adopted or pro-
posed.
Add to that the possibility Of
increased workmen's compensa-
ton and unemployment COM
pensation insurance. If Congress
adopts them. and the sock would
really hurt. say the real estaters.
Rent Boosts Possible
Then, too. there's the proba-
fbility Of higher rents In apart
ment and business houses.
The District tax rate has been
o favorite target for members Of
Congress striving to keep down
the Federal payment to the Dis
trict.
Just before World War II the
rate was $1.75 pei 500 assessed
valuation. That hung on until
| 1947. but since then sr:raling
budgets have caused three rate
increases.
The figure was upped to 50
In 1913. to sails In 1850 and last
year to $2.20. Since each 5 cents
brings In about $050,O00 under
present assessment standards,
the 10 cents would give the Dis
trict about SIS million toward