Jasper County Democrat, Volume 13, Number 36, Rensselaer, Jasper County, 13 August 1910 — LAND AT FULL VALUE. [ARTICLE]

LAND AT FULL VALUE.

State Tax Board Thinks This Wotild Reduce Sequestered Property. Considerable discussion has taken place among members of the state board of tax commissioners concerning the advisability of appraising real estate in the state next year at its full market value instead of at a fraction of the value, as it is now appraised. The average appraisement throughout the state for farm land is less than 40 per cent, of its market value, running in some- cases, as low as 28 per cent. The percentage for town and city property is somewhat higher, but does not come near the market value. The discussion of the question has followed a consideration of a. number of plans to reduce the amount of sequestered property in; the state. Persons known to have considerable .money invested in stocks, bonds, mortgages and other securities have told members of the board that the}-1 will keep their securities hidden until such time as the.taxing officials of the state and county readjust property appraisements so that there will be an equalization of taxes. The man with $lO,000 cash, it has been represented to the board, is compelled, if he permits 'the taxing officials to know that he has the money, to pay taxes'on the entire amount, while the. man who owns a farm valued at SIO,OOO pays taxes on less than $4,000 because of such ownership. Until a more nearly equal system of valuation is es tablished it has been represented to members of the board sequestration of taxables in the state on a large scale will continue. dhe law governing the appraisement of taxable property requires that real estate be listed at its market valqe, but the law has not been followed. Virtually all the real estate appraisement is in the hands of the county boards of review, and re-ap-

praisement is made every five years. In former appraisements the county boards have always kept the assessment low because of a belief on the part the land owners that the only way they could be justly treated in the matter of paying taxes was to give the land a low appraisement in order to establish a proper relative value with the appraisement of corporation property. To change the inethod of appraising land values would upset the long established system and the tax board members who are discussing the proposed new plan hesitate to speak definitely on the subject. It is agreed, however, that land appraisement is much too low, and that the appraisement to be made next year should show a marked increase. The best plan, it is being urged, would be to appraise the land at its real market value, then readjust the valuation of other property with land values as a basis. With the new appraisements in the hands of the county, city and township officials at the close of the year, new tax rates could be established to meet the changed appraisement conditions, and no citizen would be compelled to pay an unjust amount of taxes. It is believed, too, that the appraisement would enable the general assembly to lower the state tax in the legislative session of 1913. instead of providing for Increasing it, as is now contemplated seriously in some quarters. The chief beneficial results that would follow such proposed readjustment of land values, board members believe, would be the voluntary listing of property now sequestered. Members of the board believe that millions of dollars would find their way to the tax duplicate as soon as it was proved that the taxing officials desired to establish an equitable system of valuation.