Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-28
Area Taxes

I would like to make a few
clarifying points with refer
ence to the article on local
taxes which appeared on page
A-33 of The Sunday Star April
Is.
While your reporters had
the right idea of the manner
in which local taxes should be
compared, in carrying out their
survey they attempted to COM
pare that which is not COM
parable.
The rate used for Prince
Georges County apparently in
cludes only taxes for county,
school and fire purposes, omit
ting even the State tax. The
rate used for Montgomery
County includes the State tax
and taxes for all municipal
services except those levied by
an incorporated town or city.
Apparently there has been
added to the Montgomery
County rate a prophesy that
the council would make appro-
priations for 1856 without re-
ducing any of the preliminary
budget requests. There is no
indication that your reporters
attempted such prophesy with
regard to the other jurisdic-
tions.
Since Prince Georges Coun-
ty has special tax rates CORE
spending to those in Montgom-
cry County, with the exception
that there is no suburban dis
trict in Prince Georges County,
a comparison based upon the
rates as used is obviously I'M
fair to this county, particularly
in view of the fact that in re-
cent years the county tax rate
in Montgomery County has
tended to be slightly lower
than that in Prince Georges
County.
Your reporters may have
been confused because the
formula used by our assessors
tends to arrive at valuation
approximately so per cent. not
OF sale value but of construc-
ton cost MONTGOMERY and
Prince Georges County asses
sorS use the same formula and
methods. While the Montgom-
cry County ratio to current
market values may possibly be
signify higher than that of
Prince Georges County. the
assessments will generally be
found to be comparable.
Where the market value of
property is the same in the
TWO counties, and where SIM
liar although not necessarily
equivalent services are rem
dered, the local tax bill in
Prince Georges County will
tend to be slightly higher than
that in Montgomery County
but the difference will USUALLY
be very small. and in some
particular instances it NAV
De possible the bill would be
slightly higher in this county
AS to overall taxes, State
ana county, in Virginia as
compared with Maryland the
following factors would tend
TO make the bill lower in Vir-
glnia than in Maryland
II II a substantial portion
OF the income of the taxpayer
is unearned income, such as
investment income.
q If the taxpayer has few
or no dependents.
- If the taxpayer has few
or no automobiles.
A. If the taxpayer has lit
tie household furniture and
personal effects.
81 If the taxpayer buys a
great many items which would
III other jurisdictions be sub
lect TO sales tax.
Conversely. the picture is
more favorable in Maryland
for salaried persons with enc
or more dependents, those who
have one or more automobiles.
and those who do not make a
great many purchases subject
to sales tax.
II would therefore seem to
follow that. generally speak,
ing. the person in a high in
come bracket would be favored
in Virginia, while the salaried
family man will usually be
better off in Maryland. Every
actual individual comparison
/ have been called upon TO
make indicates this to be true.
The tables published with the
article referred to seem to in
dicate the contrary.
The difference in taxes in
the areas surrounding Wash
ington IS so spall that such
difference shouM not be suf-
flcient to be a material factor
IN choosing place TO live.
Alex. X, Hancock,
Director of Finance,
Montgomery County. Md.