Evening Star Newspaper, June 22, 1935, Page 18

- B2 REALTY VALUATION BY INCOME URGED) Association Official Calls Present System an Obsolete One. A frontal attack on ihe obsciete system of valuing property for tax purposes is urged for all real property owners and all States by Paul E. Stark, Madison, Wis., chairman of the National Committee on Real Estate Taxation of the National Association of Real Estate Boards, in a communi- cation to members of the committee and in a statement released foday. Emphasizing the principle that ability of a property to yield income is the most accurate measure of its value for tax purposes, Mr. Stark places be- fore the mors than 500 members of the committee representing the prin- cipal urban communities of the coun- try a threefold plan of action to put this principle into effect. He urges: 1. Introduction into Legislatures of the various States of measures making it mandatory for assessing officials to value properties for tax purposes by capitalizing their income. 2. Pendiag such legislative action, encouragement of property owners to seek immediate relief through court procedure to secure a fair assessment, basing their case upon the principle that taxation should be on the basis of income. 3. Encouragement of property own- ers to bring before the boards of ap- peal of the various States as may be provided by law, through appeals from the local assessors, the matter of fixing value for tax purposes by the income method. Laws’ Amendment Asked. ‘The association as a principal plank of its platform for real estate tax relief asks the laws of all States be amended to compel assessment officials to con- sider this factor of income in making their tax valuations. “The courts as well as the legis- latures have already cpened the road for attack on this problem,” Mr. Stark points out. “In at least seven States the State law already includes in some form provision for an income base for real estate assessment. In at least 21 States tae principle is recognizad, either in law, by court de- cisions or by acticn of the boards of tax appeal. For example, in a series of decisions in Connecticut, Florida, Massachusetts, Minnesola, Nebraska, New Jersey, New York, Oklahoma, South Dakota and Texas, it has been held that earning power of property may be considered in arriving at fair value. These laws and these decisions indicate that legislatures and courts of justice recognize the unfairness of our present method of tax assesse ments. They are attempting to pre- vent confiscation by Government through its power to tax. The State Tax Commission of Utah, for exam- ple, has invited the Staie Realty As- sociation tc submit suggestions as to use and income as an assessment base. “The Supreme Court of the United States has held as follows: ‘The value of the property results from the use to which it is put, ana varies with the profitableness of tnat use. There | is no pecuniary value outside of that which results from such use.’ Ability to Pay Stressed. “Abandonment of the ad valorem system and employment of the in- come method of assessment” Mr. Stark satd, “will permit real estate to share in the cost of grvernment in accordance with ability to pay. Only by an income method of assessment can all properties be on such equal footing in the payment of their share of Government costs. “Once this principle is established, home ownership will be more attrac- tive.” From the point of view of general welfare, Mr. Stark says of the obso- lete ad valorem system of tax assess- ‘ment of real estate: “The ad valorem system has failed because too often it has led to con- fiscation. The tax, having no relation to income, became a capital levy. ‘There was a time when Government gave to its pecple land in order that home owning might be encouraged and our country developed. That policy made us a great people. Now that process is being reversed. Gov- ernment is taking away the homes of its people by the taxation method. This, continued, could destroy home ownership, and no country can long survive the destruction of its homes. “The ad valorem system has failed because it hac been a large con- tributing factor to our recent deluge of foreclosures. The discouraged real estate owner esch year saw the tax bill grow in relation to his income. There was nc hope for him and he quit. Tax Delinquencies Cited. “The ad valorem system has failed because it has created an alarming tax delinquency in all parts of the country, thus depriving local govern- ment of a large per cent of its income. In many cities the patient payless teachers were all that stood in the way of the utwer collapse of the edu- cational system. Such delinquency does not exist under other forms of taxation because they are based upon ability to pay. “The ad valorem system has failed because it has substituted guesses for facts. It persistently clings to the delusion that cost is value. The as- * REAL ESTATE. THE EVENING STAR, WASHINGTON, D. C., SATURDAY, JUNE 22, 1935. New Virginia Residence Sold ‘This attractive small home is being erected in Hill wood, located on the Lee Memorial Boulevard near, Falls Church, Va., for Mr. and Mrs. E. B. Thompson. Land for the home was purchased from Eakin Properties Corp., developers of the new subdivision. sessor under our t system ordinarily thirks only of cost less de- preciation and of neighborhood sales. This is like driving a car without a steering whees, and the effect of our assessment system has been no less tragic as far as property owners and tenants are concerned. On the other hand, communities which turned to a tax plan based on ability to pay are finding their dollar and cents revenue actually increased. “Abandonmert of the ad valorem system for assessing real estate and substitution of the income method will tend to stabilize the real estate market by tending to avoid the practice of deflating property for tax valuation and inflating it for sale purposes. The tax valuation will be- come the true value. Annual Assessment Asked; “The income method of assessment calls for annual reassessments of properties as against the current practice of reassessing at two or four year periods. It will simplify assess- ing procedure because the factors in- volved would be more definite and| more susceptible to proof. There is no need to assess on the basis of present value of far distant income, as valuations for tax purposes will be made each year. Answering the ob- jections that it is difficult to establish use value, the Supreme Court of the United States kas said, ‘The argument is in essence that it is difficult to be just and easy to be arbitrary * * * gross inequalities may not be ignored for the sake of ease of collection.’ “Introductior. of the theory of use value in assessing properties raises technical questions which several years ago it would probably have been impossible to tackle. The splendid work done by the American Institute of Real Estate Appraisers makes it possible for us today to tackle this important task. The institute’s president, Joseph B. Hall of Cincinnati, is selecting a committee to work on these technical problems.” STRICT LAW ADVOCATED FOR RESALE OF TIMBER Baltimore Real Estate Board Asks Regulation on Used Build- ing Material. Special Dispatch to The Star. BALTIMORE, June 22.—Strict laws governing the purchase and resale of used building materials will be sought of the City Council by the Real Estate Board. A committee, headed by Harry E. Karr as cl sponsors the move to afford greater protection from vendalism for owners of unoccupied buildings. ‘The present law requires purchasers of used building materials to report such purchases to policé. According to C. Philip Pitt, secretary of the Real Estate Board, the law is difficult of enforcement, however, as it stands. 7,800 514 Underwood Street N.W. A new all-brick home, 5 rooms, beautiful bath with shower, open fire- place, furred walls, weath- er-stripped and copper screened throughout, slate roof, rear porch off living room. Every modern con- venience. Open Daily and Sunday ’til 9 P.M. GOSS REALTY Co. 1405 Eye St. Na. 1353 J. . EATON, Sales, Chevy Chase, Md.-$10,950 THIS outstanding center-hall, all-brick house is offered for the fim‘dmo at this astonishingly low figure. Located on a large lot, it contains a large living room, dining room, full electric kitchen and breakfast room (full size) on the first floor, and on the second floor there are three large bed rooms, two beautifully tiled baths and cedar closets. House is insulated, has a finished attic, slate roof, copper flashing, open fireplace, electric refrigeration and garage. Ope: 21 M., D8R, Sl S W soosin Avins 1o i Natl. 4600 1fternoon evenis ring né Sk SR svaheTane. it e Phillips & Canby, Inc. Investment Bldg. LOAN ASSOCIATION STRENGTH GAINING One in Every Five District Residents Now Share- holder, Survey Shows. One out of every five persons in the District of Columbia is now a shareholder in a building and loan association, according to figures just released by William 8. Quinter, sec- retary of the District of Columbia Building and Loan League. His re- ports from the various associations for the first five months of the year show that, up to June 1, 7,003 new accounts were opened in the District, which brought the total number of shareholders above the 100,000 mark. | That the associations, in turn, are putting the money into home loans, where much of it goes for construc- tion, repairs and improvements of all kinds, is evidenced by the fact that from January 1 to June 1 of this year 2084 loans were made for & total of $8,546,000. This is almost double the amount loaned for the corresponding period last year, when, according to Mr. Quinter’s figures, 1,491 loans were made, totaling $4, 000. In May alone, of this year, there were 515 loans made for a total of $2,173,000, while in May of 1934 the | total number of loans was 375, which meant a disbursement of $1,200,000. The steady increase in membership and loaning activity of the building | and loan associations of the District is one of the most significant and en- couraging “signs of the times.” ac- cordliw to Mr. Quinter. “While the associations of the District have not perhaps experienced to as great an extent as those in other parts of the country the full impact of the dis- tressed conditions which have pre- vailed in the real estate fleld the last few years, yet even the most optimistic of our managers would not have pre- dicted so rapid and decisive an up- turn,” he declared. “One of the smaller associations, for example, with assets of approximately $700,000, re- ported an jacrease of 20 per cent in assets for Lhe month of May, and the fact that on an an average of 1,600 new accoints came into the associa- tions duriyg-the first five months of the year certainly indicates that they are performing a very real service and also that the residents of the District are becoming increasingly conscious of the value of the long-time, amortized loan for financing the building, buying or repairing of their homes and are turning to the institutions which have consistently serviced this type of loan.” Sun Bathing Provided. Porches or roof terraces for sun bathing are among the many useful improvements householders are mak- ing under the new reconditioning program. Parapets or low walls, high enough for privacy—but not so high that they shut out sunlight—are used to surround a flat roof or to take the piace of an open railing on a second- floor porch. If the floor and the inside of the parapet are painted a | soft green or blue the glare of the sunlight is eliminated. $7,500.00 Brick Construction Siate Roof Insulated Screened Electric Health Kitchen Full Basement Extra Lavatory Automatic Gas Water Heater Lot 58x100 Garage To Reach: Out Wisconsin Ave. to Leland 5St. left to property. CYRUS KEISER, JR. 5211 Wiseonsin Ave. CL 5371, SOUTH WOODSIDE L. PARK 404 Kingsbury Drive Our» Latest Answer to Public Demand Cape Cod Farm House of Old-Fashioned Red Brick A home that’s just built for highboy, four- posters and other American furniture that harmonizes with the Colonial period. There’s a large living room and a wood- burning fireplace framed with Connecti- cut mantel. Both large bed rooms have three exposures and connecting with tiled tub and shower with built-in linen double drainboard, closet. Kitchen has electric refrigeration, factory-built cabinets and eleciric exhaust fan. There’s a built-in basement garage and space where a family club room can be completed at very small expense. Here’s truly a “home of homes” for a small family wanting city ‘conveniences close to the apen countryside. : *8,350 NS 7906 Georgia Ave. ASHINGTO Gompany E. BROOKE LEE, Pres. SHepherd 2400 DIRECTIONS: Turn right from Georgia Avenue at trafic light in Silver Spring, continue om Colesville Pike to Toll House Tavern, Dale. Drive and homes in South Woodside Park. DEALERS PROFIT BY MODERNIZING Merchants’ Experiences Cited to Show Value of Improvements. In speaking of the dollars and cents profit angle of store modernization, As an example of this, Mr. Kiefer cites an actual incident in Chicago. Shoemaker Profits From Loan. “A shoemaker,” he states, “who had been operating for some time from a basement shop where he was unable to get enough business to keep himself occupled, learned of the national hous- ing act. Being wide-awake and seeing the possibilities it offered, he leased a first-floor store and immediately took out & loan ‘on the F. H. A. plan. First, he put in a new and modern show window, then he painted up the ex- terior and interior of the shop. “He didn’t stop here, however,” re- lates Mr. Kiefer, “he purchased new benches, two of which he placed right in the show window. Then he hired two workmen, dressed them in bright colored smocks and put them to work at the benches.” Sunday. REAL EST ATE, Water, Fertilizer and Spray Needs of Roses: Are Primary Plenty of water, proper fertilizer and manure, and applications of dust or spray are all necessary to success- ful cultivation of roses, according to Walter R. Ballard, horticulturist for the University of Maryland Extension Service. Especially are they needed by hybrid tea roses, which have re- tained to a considerable extent the habit of recurrent blooming, which necessitates a cerfain smount of stimulation until Midsummer, when the roses go into a semi-dormant con- dition, ‘This stimulation may be supplied through applications of nitrate of sods, either dry or in solution, or as liquid manure, which seems to be preferred by many rose growers. While applica- tions of manure or fertilizer are not made after Midsummer, when the dor- mant period begins, they are resumed .| when cooler weather arrives and another period of activity starts. Roses need an abundance of water and, if the soil is well drained, they can scarcely be supplied with too much. The beds should be soaked OUTSTANDING : VALUE $7,850 ABOVE SOLDIERS' HOME PARK An all-brick row house in excel- lent condition containing rooms. one and a half baths. - Among other fentures are Sevarai hardwood tr! . com and weather-stripping. = screen: . glass-inclosed be bought on con' For Further Details Call Owner GEORGIA 5516 SEE FURNISHED EXHIBIT HOME Even if you're not thinking of buying, you'll enjoy inspecting this exhibit home furnished by Palais Royal. Open from 10 a. m. to 9 p. m. daily and DIRECTIONS Drive out Massachusetts Avenue, turn left on Wisconsin Ave- wue four blocks end right et Calvert. thoroughly about once a week during the period of active growth. In recent years there has been a tendency to mulch the beds in Midsummer with peat moss or & similar material. ‘The and diseases should be started early, and continued throughout the entire season, according to Mr. Ballard. He points out that, while it is not quite as effective as spraying, dusting is A good mixture for dusting, accord- ing to Mr. Ballard, is nine parts of the foliage covered, as sprays and dusts are preventative rather than Venetian Blinds Return. Old-fashioned Venetian blinds are in modern homes and spartments. These, however, are no longer in the standard green of our grandmothers’ day, but are presented in a whole range of pastel colors. Many house- holders repaint their Venetian blinds in tint, which harmonize with the interior decoration of their rooms. On Top of the Hill In Hillcrest Two of the Finest Values in This Beautiful Section 2218 32nd ST. S.E. A beautiful Colonial brick. Large living room, sun parier, attractive din- ing reom, weil-equipped kitchen and lavatory on first floor; 3 large bed rooms and bath on second floor; built- in garage; large lot. One of the finest bomes in this community at & bargain price. 2217 320d ST. SE. Also another new English Colonial brick on a 50-ft. lot, built-in garage, € rooms, 2 baths; bed room and bath on 1st floor. Modernistic kitchen. Both Homes Open All Day Sunday FRANK S. 927 15th St. PHILLIPS DI. 1411 ¢ountry Environment In These Modernly Convenienced City 3803 Calvert St. N. W. COMMANDING ELEVATION 10 Minutes’ Ride From White House SIZE OF LOT 18 ft. x 137 ft. TO A PAVED ALLEY ‘9450 You will want to see these splendid new, individual homes—and when you see them, you’ll want to own one. You'll admire the splendid workmanship and sound construction—of these homes —their quick accessibility to downtown Washington via Wis- consin Avenue. Inspect them today and be convinced that your home ideal has been achieved at a cost you can afford. Shopping center in immediate neighborhood. Elevation commands view of distant Alexandria and Potomac River. 1. Six rooms, twe baths; recre- * ation reom and toilet in base- ment. 2, Hot-water heat with sas fired '* boiler, Bryant manufactured. in mew Roval biue jacket; Rex hot-water heater te match. | 3, Covver water pives throushout. 4, Reereation reom finished in * Knotty pine; floors of asphalt tile in design. Living 16" x 17", hard- 5. wood no":::' four double floor 6, Kiteben contains Oxford = vitreous ehina bi- one-plece Features of These New Homes ered with linoleum of distinetive Dpattern. 7. Main bedroom, 11’ x 17, with e, clesets. mirrer deers and G, Datached or buili-in 1-ear * sarage for each house. 10. Each house fitted with copper T weather strivped, Government Loans The National Housing Administration has appraised these homes and has agreed to insure maximum loan permissible under the law. J. A. McCKEEVER CO., Agents CALVERT REALTY CO., OWNER 1625 K St.,, N. W. Di. 9706