i8

THE  A  B  C  OF  TAXATION

Based  upon  the  foregoing  ratio,  the  following  conservative ­
  estimate  of  the  gross  land  value  of  Boston  is
submitted  for  scrutiny  and  criticism:
A  CONSERVATIVE  CALCULATION  OF  BOSTON’S  GROUND  RENT

If  the  assessed  valuation*  of  Boston’s  land
for  1907,  which  is  in  round  numbers
Is  five-sixths  of  its  selling  value,  then  the
addition  of  one-fifth  ....
Would  give  us  as  the  net  selling  value
Adding  to  this  the  capitalised  value  of  the
amount  of  tax  now  on  the  land,  $15.90
per  thousand  on  $653,000,000,  or
$10,382,000  at  twenty  years’  purchase  **  .
Would  give  us  as  the  true  capitalised  ground
rental  value......
Add  moderate  estimate  for  franchises,  say
And  we  should  have  as  a  basis  of  assessment
under  the  single  tax  a  total  capitalised
ground-rental  value  of  at  least.
At  5  per  cent  this  would  indicate  for  Boston
a  ground  rent  of

$653,000,000
130,600,000
$783,600,000
207,600,000
$991,200,000
108,800,000

$1,100,000,000
$55,000,000

or  considerably  more  that  double  the  total  taxes
of  Boston.!

*The  official  figures  arc:

Valuation

Rate

Tax

Land  .

$652,995,30x3

$15.90

$10,382,700

Buildings  .....

417,869,400

15.90

6,646,200

Personalty  .....

242,606,857

I 5-9°

3.857,435

$L3i3>47M57
t  Boston’s  income  from  taxation  for  1907  was:
Land  values  .......

$20,886,335
$10,382,628

Buildings  and  other  improvements

6,644,121

Personal  estate

3,857449

Polls

369,966

Corporation  taxes

1,087,793

Liquor  licences

1,079,585

Boston’s  total  city  tax  (including  state  tax)

$*3,4*1.54*

**See  p.  24,  lines  21-24  and  p.  32,  lines  8-13,  and  p.  41  (g).