Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-16
TAXATION SYSTEMS
IN OTHER CAPITALS
Plans Under Which Govern
ment Property Pays Its Share
Shown in Report.
INFORMATION COLLECTED
BY DEPARTMENT OF STATE
Transmitted to Senate by President
Wilson Under Resolution Intro
duced by Senator Gallinger.

Persistent Wilson has transmitted te
the Senate a report gathered by the De
partment of State showing. the systems
of taxing government property in the
capitals OF the leading countries of the
world. In many of the capitals 1t Is
found. the government either pays taxes
upon its property or ii makes contrlou-
tons to the communities in which the
property is located in lieu OF tax,
Should the question of changing the
organic law of the District of Columbia
which provides for a half and halt ar
rangement for meeting the expenses OF
the National Capital, by which the fed
eral government pays one-half and the
other half comes from the revenues OF
the District, be raised again, as 1t has
in the past it is expected that the infor-
nation contained in the report just made
to the Senate will prove of value as
showing how other civilized nations
| handle the subject.
The resolution to which the report. is a
reply was passed by the Senate last Feb
ruary, after being introduced by Senator
Gallinger of New Hampshire, then chair
man of the Senate District committee, a
| warm friend of the half and half plan.
| He said today that he had been in search
OF information and that he thought II
would prove of value. 1t is hardly likely
however, that this information will be
used in debate in theSenate unless a
proposition for change in the financial
plan of the District should be up for con-
| Sideration.
Method in Fourteen Countries.
| BY Senator Gallingers resolution, the
| Secretary of State was directed. through
| the diplomatic and consulal officers of
! the government, to ascertain the system
OF taxing government property in the
| leading capitals of the world. The re-
| port contains replies from these officers
| i'm fourteen countries. In most of these
| countries it is found that there is no
| direct tax upon the government-oWned
| property; that either no attempt is MADE
! by the government to compensate the
| communities in which the property is
| located for the benefits derived, or as
/ in the majority of cases, contribution
| of some kind is made In place OF direct
\ taxation. In Spain. Japan, Brazil, the
| Netherlands and Portugal there is no
| tax whatever on government property.
In England the government property IS
| not taxed directly, but the government
makes a contribution to those communl-
! ties in which the government property Is
| located The theory of these contribu-
| lions is that the various communities
! should not suffer because of the occupa-
| ton OF a part of their area py the gov
| eminent. and that the government should
make some return for the benefits derived
| from the police and fire protection given
by the communities. However, II the gov
| eminent property in question happens to
| be occupied by the royal family no con-
| tribution is made. If government prop
erty Is rented to private individuals and
is bringing in revenue to the govern
ment it is subject to taxation in Eng
land. In London government offcia's are
subject to the inhabited house duty.
In France still a different system is
adopted with relation to government
property. The government-owned prop
erty which produces no revenue Is taxed
to cover the proportion OF benefits due
to the collection of garbage, the laying
of sewers and sidewalks and other such
services. On the other hand, govern
nlent-owned property which brings in a
revenue is taxed. paying the general land
tax of 2'3 per cent on the net income
In Paris government lands are subject
to municipal tax, limited to 10 per cent
on the capital value OF the property.
Plan in Germany.
4 communal tax on the income derived
from the operation by the government OF
railroads and other public utilities is
paid By the government in the German
empire. There Is also n tax upon revenue
from forests and public domain.
Local taxation on government property
when that property is leased, is allowed
by the Russian government But gov
eminent owned property which Is used
by the government and from which there
Is 10 income pays no taxes.
In Italy the government taxes Itself on
the property IL owns. which means large
~ a matter of bookkeeping. In addition
10 this central government tax, much o.
the government property pays local
taxes.
a list OF all government property, with
a large number of exceptions, Is sent to
the various communities for taxation.
Public property is divided into two
classes. The roads, the town walls.
ports, the seashore. fortresses and other
areas known as public domain is one
class. The other is called government
patrimony" and includes all other gov
eminent property in Italy. Only the
public domain is completely exempted
from taxation.
Austria. like England. in principle. per-
mits tax on government property for
the benefit of Communities in which the
property is located. The government al
lows also tax upon railroad property
owned by the government. This tax is
apportioned among the various coiilmunl-
ties through which the railroad passes.
In Brazil the property owned by the
government is not taxable. The law.
however. Is that i'll the sale of govern
meht property 10 private individual a
lEdiiSttf kcA HiuSt ot pau. Ip"t NhCit
the property is sold by an individual to
the government no such tax Is levied.
For number Of years the commune
in Belgium have attempted to levy taxes
upon government property which pro-
iuccs no revenue. but these attempts
have all been without success. They
must first be sanctioned by the govern
ment and this sanction has never been
given.
Should Congress ever decide to change
tho organic law of the District, ample
precedent in other lands for the taxation
of government property for the support
of the National Capital are now at hand.
The government owns such large areas
os property I'm the District, however,
that il is the general belief that should
the government property be taxed as
other property in the District. the gov
eminent might he forced to pay an
nually 10 the District larger sum than