Show Equalization of I Property Tax I Big Problem Equalization of property assessments assess ments for tax purposes is the number one administrative problem problem lem nationwide in n the administration tion of state and local tax structure struck ture tures It was concluded in a re research research research re- re search report issued this week by Utah Foundation the private nonprofit none non profit tax research organization non non-I A recent survey revealed that 43 of the states of the nation report a major need for property assessment and equalization Of there states 31 are involved in some kind of or an equalization pro prop gram eram According to the Foundation report report report re re- re- re port a complete revaluation of all properties Is the most satisfactory sags satis factory method for improving equity equity equity eq eq- eq- eq among property tax payers Such a reappraisal program If It properly carried out is a complete complete complete com com- unit by unit Inventory of or the assessable property of a commune ity Utah Foundation analysts point out that such a survey canwell can canwell canwell well be compared to the complete physical Inventory taken by a busIness business bus bus- iness mess establishment as a check upon its bookkeeping inventory records The reappraisal survey is designed designed designed de de- de- de signed to discover properties not noton noton noton on the tax rolls changes in n the physical character or the use of property not reflected upon as- as rolls and most important important im im- m to determine equitably the current assessed values of all property It is the objective of reappraisal to establish standards of value which will be consistent and equitable for all classes of or property throughout the State If these standards are properly applied applied applied ap ap- ap- ap plied In the determination of assessed assessed assessed as as- value all property will bear Its just portion of or the tax load Ther The Utah Foundation report points out that three basic approaches approaches approaches ap ap- ap- ap may be used In determIning determining determining ining the value of property cost income and sale Any revaluation revaluation revaluation tion survey must consider all three approaches Reproduction costs based upon the average cost of or labor materIals materials mater mater- and other items at a particular particular particular par par- time less depreciation at ata ata ata a fixed rate are the common ways to determine the val value e of buildings and improvements For unusual cases other factors must be taken into consideration such as exceptional physical depreciation depreciation depreciation and obsolescence Land is usually more difficult to value than other class classes s of property Income and sales data are arc Important factors In determIning determining determining ining the value of both urban and rural lands Utah which over the years has been one of the leading states in utilizing broad wide state appraisals appraisals appraisals ap ap- ap- ap to improve assessment equity permitted its assessed valuations valuations val val- to remain static through more than a decade of or war and postwar years The 1953 Special Session of the Utah Legislature carried out a recommendation of the School Survey Commission directed by the Utah State Tax Commission to all property property property prop prop- erty in the state of Utah on a county by county rotation basis every five years Approximately thirty per cent of locally assessed assessed assessed assess assess- ed property in the State has been revalued since 1953 A marked up step-up in the program will be necessary If the reappraisal is to tobe tobe tobe be completed within the allocated allocate ed time Replies to sent out by Utah Foundation to other states indicated that three states Colorado Maryland and VirginIa Virgin Virgin- la Ia have completed wide state-wide reappraisals re- re reappraisals reappraisals re re- appraisals within the past five years Eight other states have recently initiated wide state re reappraisal reappraisal reappraisal re- re appraisal programs The Foundation report contains a brief analysis of the appraisal programs of five of the states which have carried out comprehensive comprehensive comprehensive compre compre- rea reassessment programs |