Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-11
PERSONAL TAX
Law CHANGES
Recommendations by Assessor
DarneilIe in Annual Report.
LOCAL BANKING COMPANIES
Suggestion Made That They Are
Overtaxed in District.
TOTAL ASSESSED VALUATIONS
Increase on Realty for Next Fiscal
Year, $7,s44,5oe-Tax for
1907, $4,4oe, 5e7.4s.
TOTAL ASSESSED VALUATIONS

H. H. Darneille, assessor OF the District.
in his annual report for the fiscal year
ended June 80 last, which he submitted to
the Commissioners yesterday afternoon,
emphasized the Importance of making GER
tain material changes in the present per-
sonal tax law Of the District of Columbia,
especially in relation to national banks and
trust companies, which Institutions, he de-
he thinks they have suffered long enough
the rate Of per cent year.
This report of Assessor Darneille is his
last as assessor of the District as his
resignation takes effect the last day of
next month. 1t Is accompanied with
statement of the assessed value-ef the tax
able real estate and an estimate of the
taxable personal property in the District
of Columbia for the iscat.year ending June
30, 1907. In this he estimates a total In
crease of $7,S44, 500, shown in the assessed
valuation Of real estate in the District
over the fiscal year of 1906 which means
an increase of Sill, 667 GA in the taxes to be
paid into the District in 1907 over the fiscal
year of 1906.
According to his report the assessed val
uation of land in the city is sos, 2S3, 675
and the assessed valuation of improvements
$50, 039, 745. making a total assessed valua-
ton of $194, 323.42O The tax thereon will
be s2.914, S51.32. In that part of the Dis
trict known as the county the assessed
valuation of land is s31 ,49O, 724; assessed
valuation Of improvements, $21 ,432, $780,
making the total assessed valuation $751;
9S3,074, the tax thereon being 1874, 1871.
yoN4 to-,
tate in the District for the next fiscal year
is stated to be $247, 800. 1914 and the total
real estate tax Is So, 100, .43. In the fiscal
year of 1905 the total assessed valuation
total real estate tax last year was So, 591, =
9297S. OF this total amount Of tax the
sum of 81 S45932 was for real estate in the
city and sT45,99 in the county, making
an increase for the next fiscal year of
81, 594. 557 in the city and So, 249,952 in the
county. The total tax on real estate
and estimated tax on personal property for
the fiscal year ending 1907 will be 50, 709,-
591. 43 realty and 100000 personal, making
total of 4.409. 597 .43
Personal Taxes Discussed.
Regarding personal taxes Mr.. Darnelle
says:
1.-The board Of personal tax appeals will
not adjourn according to law until the sec
ond Monday in March, and as a .conse-
tify the levy fersthe fiscal year ending
June 30, 1907. but the estimate is consid-
cred to be very conservative.
Our citizens are rapidly becoming more
reconciled and accustomed to the personal
tax law. There will always be more or
less friction in the operation of such a law
If conscientiously enforced, but 1 believe
our law. taxing as 1t does only franchises
and tangible property, is as moderate and
equitable a personal tax law as may be
found throughout the limited
THE law makes each taxpayer his own
appraiser in the first instance and per-
haps the most difficult portion of the duties
of the tax appraiser is that of reconciling
the widely divergent ideas of values held by
citizens as to the same kind of personal
property"
Banks and Trust Companies
1t was at this point that the assessor
criticised the law in relation to its ten
dency to overtax banks and trust COM
panieS. Upon this subject he said:
II do not claim that the present personal
tax law is by any means perfect. and 1 be-
lfeve certain material changes should be
made therein, especially in relation to ma
tional banks and trust companies, which
consider to be overtaxed at present
When the bill relating to personal taxes
was first started there seemed to be a dis
position In certain quarters to hit hard at
the banks on account of their having es-
capped taxation, as it was called at the
Capitol, on gross earnings for many years.
However, 1t was not the fault of the banks.
1t was the fault of an invalid law, and 1
think the banks have suffered long enough
at the exhorbitant rate of per centum
on account of the fact that for some years
they did not pay, due to the importation
Of an invalid personal tax law, and I
heartily recommend that hereafter they
be required to pay 5 per centum per an
mum on the amount Of their gross earn
ings less amount of interest received from
government bonds in lieu of the present
rate of per centum per annum.
Trusts Hardest Hit.
Tho trust companies of the District have
been even harder hit than have the national
| banks, In view of the fact that ever since
their Incorporation. under the act of Con-
gress, approved October 1, 1890, they have
paid up until the new law the amount of
tax prescribed by said act upon their gross
earnings without any bubble whatever and
most earnestly recommend in the case OF
| trust companies that their tax be reduced
| from to per centum per annum upon
their gross earnings less amount Of interest
| paid to depositors. l believe that the wis
dom Of this recommendation will be readily
| seen by those in authority and the law
| makers on Capitol HILL"
Matter Of Refunds.
MI. Darnefde recommends that q bill be
prepared providing that hereafter no err
Yoneous payment OF taxes shall be refunded
for more than three years prior to the date
Of application. In making this recommends
| ton he points out that inasmuch as the
act Of August IA, 1904, provides that no
property which has escaped taxation shall
| be liable for taxation for a period Of more
| than three years prior to such assessment
except in the case Of property involved In
| litigation, the District should have the same
| advantage about refunding money paid err
| roneously for taxes. 1T would seem to be
| poor rule that does not work both ways
| he said.
| In order that the board OF equalization
| and review Of rear estate In the district
may have ample time to do justice to both
| the citizens and the District, and enable
| the members to go over the books Of the
assessor for compilation Of the tax ledgers
| in time. Mr.. Darnefile recommends that the
date of meeting of this board as prescribed
| by law, be changed. At present the board
l 49, t.