Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-11
DELINQUENT TAKE S
The Assessor Thinks a Penalty Must Be
Collected.
He, However, Says That Per Centum
Per Month Is Enough to Pay
Bill Favored.

House bill 1923, which provides that If
the first installment of taxes be not paid
before the first day of December of each
year there shall then be added to be col
lected a penalty of l per centum upon the
amount thereof, and like penalty on the
first day Of each suco eeding month until
payment of said installment and penalty,
and If said installment is not paid before
the 1st Of June following, together with
the one-half Of the original tax, like
penalty shall then be added. has been re-
ported upon by the assessor, who in let
ter to the Commissioners today says:
Il have the honor to invite your special
attention to the bill Oh. +. No. 562S) now
pending before the House of Representa-
tives. A bill similar in language passed
opinion, of great Importance to the tax
payers of this District, as it reduces the
severe penalties now eXacted under exist
ing e:o law nrssent nena,t,es consider ex-
tremely oppressive and entirely unneces-
sary as the same end can be accomplished
by the proposed reduction. The legal rate
Of interest Except where provided by spe-
cial contract, which cannot exceed 10 per
centum) is 6 per -entum per annum, and
money can be easily borrowed at this rate
with proper security. 1t would seem en-
tirely unnecessary, therefore; 10 impose
which the taxpayer can borrow money to
enable him to pay his delinquent tax.
Zone per cent a month is certainly high
enough. and higher than Congress has
established as the highest rate of interest
which can be claimed without the plea OF
usury.
ut may be claimed that this tax Ques-
ton is one of penalty and not interest; but
1 submit that in it's effect and operation
1t is one and The same in principle so far
as it's equities are concerned. but as pen
atty 1t may be enforced even In excess OF
usurious interest. If it be so. 1t is not fair
to the taxpayer in these times of financial
depression to enforce uSuriouS interest by
a technical construction Of penalty.
"In this connection / desire to add that
the proposed law in it's concluding para
graph OF section 4 says, and the whole to-
gether shall constitute the delinquent tax.
to be dealt with ard collected in the man
ner prescribed by this act
This and the preceding portion OF sala
March 3, 1877, except the rate OF penalty
provided. and it has been the invaluable
rulings OF this and the collectors Office,
supported by the attorney for the District.
that this section exacted a penalty of 2
per centum per month, as set forth in said
act, until the date of sale of the property
delinquent in taxes; and. In my opinion
said position Is not only justified. but re-
Quired under existing law.
TT has been suggested to me, however
that the language OF section 4, which
nave just quoted, Is somewhat dulDfS uouS,
and that some parties, learned in the law,
interpreted it to mean that the per cent
penalty cannot be legally collected after
July l OF each year. and that if a new law
is to be enacted this subject 1t would
be advisable to change its present phrase
ology so as to relieve 1t of any uncertainty
as to its legal construction in this regard.
II therefore recommend that the bill
Oh. X. No. 562>D be referred to the attorney
for the District, for such amendments as
he may deem proper under the suggestion
herewith submitted"