COST OF GOVERNMENT IX MASS. 



213 



The rate of $30.34 per $1000 valuation in 1926 is 78 per cent higher than the 

 rate in 1910. It is customary to compare the present situation with that of the 

 pre-war years by using the 1910-14 average for the earlier period. On this basis, 

 the 1926 rate was 73 per cent above the 1910-14 average. The post-war years 

 marked by price inflation and consequent high costs brought about 7.5 per cent 

 of the increase from 1910 to 1926. 



Limitations of the Tax Rate as a Measure of Tax Differences 



The tax rate is not an accurate measure of tax differences between towns 

 or cities, nor is it an accurate measure of the increase in taxes within a given 

 city or town. The use of the term, tax rate, for such purposes frequently leads 

 to gross misstatements of fact. 



Assessment practice varies considerably between municipalities. If all towns 

 and cities assessed property at the same percentage of full value, the tax rate 

 would be a fair method of comparison. In practice, however, the ratio of 

 assessed to actual values frequently varies as much as 20 to 30 per cent be- 

 tween towns. Many towns meet increasing expenditures by raising the tax rate 

 rather than by bringing assessed values into line with increasing property 

 values. Therefore the tax rate is not a fair basis of comparison in such cases. 

 However, it is a better measure of the increase in taxes for the state as a whole 

 than for the indvidual city or town. 



The Burden on Real Estate 



In the agitation for tax reduction, considerable attention has been given to 

 the increasing burden on real estate. For the state as a wiiole taxes on real 

 estate have increased proportionally more than most other taxes. For instance, 

 taxes on real estate increased 246 per cent from 1910 to 1926. During the 

 same period corporation taxes increased 8-5 per cent. The increase in tlie in- 



Table 41. — Index Numbers of Assessed Valuation, Property and Poll Taxes, 



1910-1927. 



1910 = 100 



1 Income Tax Act went into effect. 



