Minutes 03/12/1929 - Laserfiche WebLink

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Earch 12, 1929 ~ '~This is to call your attention to the fact that our new assessment will have to be made in 1930, the work beginning the first Of the year. The law has changed somewhat in regard to how the assessment ~hall be made. The responsibility will rest with the governing body of the city in order to provide ways and means for ~he, appointment of proper parties to make this assessment. There is a big difference of opinion on how property should be assessed. The real estate taxx is of course the backbone and source of municipal gover~ent. The levying and c~lecting of this tax presents one of the most intricate problems in modern city operations. On the justice and. eouality of this tax levy rests the entire structure of our municipal power and control. The cost of government, municipal, county and state~ has been constantly rising. It is reasonable to suppose that this condition might continue, certainly to some exten~. The people have made a demand for ~ high class governmeut and a high class of service. Our concrete streets, modern health department~ crowded a~teries of traffic, tennis courts,~ playgrounds, better educational advantsges- all of these items have kdded to the rising budgets of American communities, but with it has come a closer scrutiny of spending the city's money which to a large measure has kept the cost of government down because the city officials are bending their efforts towards getting conscientious vslue and production for labor perfo~aed for the municipality and are demanding that a high type of service be furnished. This has served to a large degree to keep the cost down. It is not unreasonable to assume that most property owners are not averse to taxes and support of thes~ enterprises of government as few of us would care to be living in the days of ttenty-five years ago, when the sole activities of government~ aside from a few police and fire protection and schools, were the occasional sprinkling of dirt streets in the summer time and possibly a s~uitary inspector looking over the back yard. The question of tax eoualization is one which has been given close study by most progressive cities throughout the country and points the way to better government. The man in the street has heretofore taken little interest in government. Now that the tax levies, through direct and indirect taxation, are coming to be felt in his pocket, he is becoming more aware of the cost of government. Direct taxation, through present methods of raising revenue, according to_ my judgment, is dangerously near the saturation point. High tax rates and high taxes have. a bad effect on real estate, both from the ~Deculative and investment standpoint and invariably one of the first things considered by an industry locating in a City; is the tax rate- methods used in making assessment, basis of assessment, etc. The industrial a~ugl~, importent as it is, is just a part of the whole. Nuch more important to the general ~a of our citizens is the fact that high taxes inecually levied are a real influence operating against home ownership and the creation of com- munity solids~vity through wide diffusion of ownership of the comm~u~ity assets. That the home- owning workm~u is a benefit to the community, admits mf no'doubt. I would like to .call your attention to the fact that hundredsof cities are now turning their attention to the ~estion of a scientific assessment of real estate ~ud the claim is made by practically all of these ~cities that it has brough~about sm active real estate market on a sound basis. If this be t~ue, ~ud ~ believe it is, this fact alone is a direct benefit to every citizen of Portsmouth. I also believe the City should be furnished a complete, authentic and reliable inventory of the assets of the community which will bring to li~at all property and it invariably pays for it- self in'a few years, which has been the experience' of other cities, with the restoration to the tax roll of property heretofore escaping taxation. It will do away with any suggestion as to favoritism or with any individual ~udgment which might be caused by error and a great cause for dissatisfaction. The scientific valuation of real estate to my mind is no myth, as I believe it is impossible to secure e~uality of taxes unlesa assessments are ecuitable and proportionate as between individual properties. Nany cities have changed from the old method of assessing property. The testimony of the assessor of Eau Antonio, Texas, is that under a modern assessment plan which is city used, 75% of the taxpayers of San A~utonio will pay less dollars~in taxes, almost 5% will remain the s~me and 20% will pay more, evidently showing that many inequalities existed. I believe it will pay ~ to go into this matter thoroughly before adopting the old method and see whether or not it will be a good thing for Portsmouth. It looks to me, from what in- vestigating I have been able to do that it will be a good investment. Lot ~ud block maps will be orovided showing the dimensions of all parcels of land and identifying each lot or parcel by ~ot and block numbers. Unit values will be the basis of l~ud valuations. Depreciation is taken ca~e both from the standpoint of age and wa~r and from the type of 'construction on build- ings. I have complete information in hand in regard to this. I have been giving the matter some study off and on fo~ the past twelve months and I am calling it to you~ k~t~ntion so that some time ~onvenient to your body, I would like to discuss it in conference with you.~ Er. Stewart moved that the Chair call a conference at an early date to consider this communication. 6th. ~I believe the time has arrived when we should ch~uge cur method of accounting in certain oarticula~s. ~ believe it is essential that'we give consideration to the matter at some early date and if you feel it advisable and agree with my thought on the matter, I suggest that- you prepare to have the change m~de sc that ~e could start the new year 19~0 under a more modern and understandable system. The rising demands of service which cities are expected to render has caused a close= scrutiny of taxing methods and a desire on the part of the tax payer for a greater voice in ~the government a~ud its method of operation ~ud a closer scrutiny of the t~-gathering dollar is necessary by public officials and with it is producing improvement in government. I believe that the tax ~oltar is today~buying more and better government in most American cities than at a~y time in the history of ~ur country and I know of no one thing which has helped more than modern ways of keeping city accounts by which a detailed statement of the budget and all financial information being available at the o~ose of each day's business, cover- ing each department's functionm and activities in government and involving certainly no more clerical expense. It has proven so in each case where the systems have been modernized. I ~m convinced that it is a good business method for each city councilman, and certainly the City ~anager, to have at his fingertips a financial ~tatement which c~n be arrived at