MAKING THE TAXES UNIFORM
Pollock, Walter W.
Making Taxes Uniform An Equitable Valuation of Land and Buildings for Taxing Purposes By WALTER W. POLLOCK EVERY reader of newspapers and magazines has at least a little knowledge of the system of...
...In Ohio the realty has in the past been appraised for taxation purposes only once in ten years, and the owners of property in Ohio pay taxes this year on values assessed in 1900...
...60 feet, 791/2 per cent...
...When to this situation shall be added a deliberate intention on the part of the assessor to give a favored man's property a low valuation and another man's property a higher value, the great disparity in assessments can be at least partially explained...
...The exact amount of the valuation of individual lots, or of all the lots, is not so important, as it is to apply a system that will proportion the individual lot values equitably to one another...
...Any street can be appraised quickly along its entire length by comparison of one frontage with another, the values increasing or decreasing in accordance with existing conditions...
...The 50 feet depth beyond the first 100 feet carries only 15 per cent, additional value, although it is one-third of the whole area, and there is a lessening proportion of value, until the land reaches a zone where it is influenced by seme other street unit...
...70 feet, 853/5 per cent...
...He divides the 100 feet square at a corner into 100 squares, each of which covers an area of 10 square feet...
...The law has recently been changed so as to provide for quadrennial assessments, and the new assessment is to be made within the first six months of 1910...
...For every conceivable combination of intersecting unit values he has compiled tables for computing corner values...
...After the determination of such a front foot, or "unit" value, for the four sides of a block, the rules for lot values of different depths, and the corner tables of Mr...
...Somers, in evolving his System, started with the fundamental idea that the community fixes the value of all land: first, by its very existence at a given place...
...Somers can be applied to all the land in the block, and to each subdivision of separate ownership in that block...
...the first 20 feet, 41 per cent...
...In the Ohio cities where the Somers System is applied an earnest effort is being made to place 100 per cent, values...
...40 feet, 64 per cent...
...He has since made a study of conditions in many other cities, and for several years has been connected with the New York City Tax Commission, under President Lawson Purdy...
...Taxes to be Made Equitable THE constitution of Ohio calls for assessments based on "the true value in money," but that has not prevented under- and over-valuations...
...W. A. Somers, its inventor, has spent fifteen years or more in perfecting his theories, and making them practically adaptable...
...But it is claimed that the usual taults of under-valuation will not be found where the Somers system is applied, even though it should be decided by the assessing beard to reduce values to 50 per cent...
...If there is a $10,000 unit in the most valuable block, evidence can easily be obtained as to the comparative values in the block that approaches nearest to the highest value...
...The "unit" is determined by calling in experts on land values, and comparing different opinions...
...Upon each of these squares he has placed a value, based upon its nearness to the two streets in which the depth percentages are combined with the unit values...
...After the "units'' have been fixed for the most valuable block in a city, all other "units" are simply comparative...
...Somers' experience leads him to the belief that the increased value at coiners extends 100 feet each way from the street intersection, and that instead of saying that the corner is worth a simple percentage more than the inside lots, the value of a corner is in fact dependent entirely upon the units fixed on the inside lots of the intersecting streets...
...30 feet, 54 per cent...
...The location of a lot within the corner influence, and the unit values on the two sides, determine the table to be used and readily shows the value of each lot...
...While this looks very technical, it is in reality simple, when the corner tables are understood, and can be worked out very rapidly when the units are finally adopted...
...Buildings are measured, classified and described on a card in such a manner as to apply a square foot value to each building of a certain class, with deduction for depreciation based on condition and age...
...and second, by the "community knowledge" -sf values...
...The Somers tables for measuring lot values require the services of expert accountants for their installation, but are based upon the idea that the land that is most accessible holds a higher proportionate value than that which is remote from streets...
...While connected with the City Engineering Department at St...
...With a 100-foot lot depth as the unit, Mr...
...and 100 feet, 100 per cent...
...and any assessor may, in the exercise of a fallible judgment, or opinion, without judgment, with the best intention, over- or under-value one property in comparison with another...
...80 feet, 90 9/10 per cent...
...but the amount of taxes to be raised will be equitably distributed among all the taxpayers, and the frequent charges of favoritism will be changed to specific criticisms of the community opinions, which have resulted in the "unit" values...
...He went to Cleveland last December to install his system, a-?.d under his diiection it has been extended to Columbus and partially in other Ohio cities...
...Within the same state there may be as many different assessment methods as there are assessors...
...If the total of the tax duplicate is less than a 100 per cent, valuation, it will mean merely an increased tax rate...
...Ohio Cities to Try New System THE cities of Cleveland and Columbus are among the notable exceptions to this rule, and there is widespread interest in the adoption by the Boards of Assessors of those cities of the Somers System, under which it is believed to be possible to make up a tax duplicate that will be absolutely equitable, as between different sections of an assessment district, and as between the different lots and parcels in the same section...
...50 feet, 721/2 per cent...
...Even the boy in the streets, Mr...
...Discussions of values being made general as to a district, instead of specific, as to lots, the clash of individual property owners is avoided, and the entire community soon becomes interested only in the bringing about of equitable values...
...After the units are fixed tentatively, and published, the citizens who may be especially interested are given an opportunity to criticize them, and give evidence that may be available as to the propriety of changes in the tentative values—private judgments, actual sales, leases, offers, etc...
...The first 10 feet of depth running back from the street, according to his curve of value, carries 25 per cent, of the value of the 100 feet...
...Somers has computed the proportionate value of each foot frontage, from the street to a depth of 750 feet...
...So far as known, the Somers System is the only effort, based on scientific principles, that has ever been worked out to measure the value of realty for taxation purposes...
...Somers says, knows which is the most important thoroughfare...
...When by public discussion among land owners and dealers, the most valuable thoroughfare has been determined, the first step is to ascertain the fair market value of an average front foot in the middle of a block...
...In no administrative function of government can be found a situation more nearly approaching chaos than in the absolute lack of system existing in the various states for the assessment of local tax^s on real and personal property...
...The proper assessment of each parcel thus becomes a mere question of the mathematical application of proportionate values...
...Making Taxes Uniform An Equitable Valuation of Land and Buildings for Taxing Purposes By WALTER W. POLLOCK EVERY reader of newspapers and magazines has at least a little knowledge of the system of taxation for the benefit of the federal government known as the tariff...
...Paul some years ago, he first applied his system...
...There is practically no general supervision or direction over the city, village and township assessors, and in few places has any effort been made to systematize the work...
...Somers has also worked out a simi-lar schedule for application to land in rural districts, under conditions existing there, but he has never had an opportunity to test its value in a farming district...
...but few persons who receive bills for taxes to pay the running expenses of state, county, city, village or township, have any conception of the basis of the assessments under which their own taxes are levied...
...If any units are found to be too high or too low, a change of the units will mean that all property in the block, affected by the units, will be given a correspondingly increased or reduced value...
Vol. 2 • June 1910 • No. 24
