The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-12-15
$l.75 Rate Is Only
Experimental Basis,
Cara.Day Declares
Officials See Reduction in D.
c.'s income or Material In
crease in Rate - Declare
Northwest Section Will Carry
Burden

If the tax plan which was passed by
the Senate yesterday 10 enacted into
law 1t viii mean that the tax rate in
Washington will be raised consid.
orably, or the amount Of money appro-
priated for the needs of the District
will be materially cut. This Is the
opinion of District officials and promi.
nent business men expressed today.
Under the Senate plan of exempting
improvements to the extent of $1,000,
the northwest section of the city will
have to pay the biggest amount Of the
taxes on improvements, because there
are very few houses in the other sec,
lions of the city that pay an improve
ment assessment In excess of $4,000.
Huge Loss in Levy.
In addition to loading the bulk Of
real estate taxes on the northwest Sec
ton OF the city, the exemption will
mean a loss of between $4,000, 900 and
100000 900 in the tax levy. 1t is es-
timated that the exemption will apply
to about $4,000 improvements in the
city.
It 10 estimated that the total mum.
bSA VI Improvements Ou NitC
shape OF houses, stores, garages, ETC.,
IN the District is between 80, zoe and
10000. These improvements are d.
vided into so-called parcels. and there
are about $4,000 parcels Of improve.
ments in the District. 1t was pointed
out today by District officials that \
mans house and his garage. which
was built on the same ground, would
be classed as two separate Improve
ments, but the two together were con.
sidered as one parcel.
The District will lose about 25 per
cent of the total revenues now derived
from real estate, 1t was said. and
would lower the earning power of the
District to about $11,000,0 900 a year.
The District now raises about $4,000.
400 from various sources.
II the plan of taxation was applied
20 the District appropriation bill for
the fiscal year lending June 80. 1923,
which amounts to about SIS, 600, 600,
the District could only pay about ~
per cent.
District officials and residents Of
hte city who know the attitude of
Congress toward the District. do not
Tor a minute believe that CONGRESS
VIII ever agree to pay more than
40 per cent Of the District experdi-
lures. With this in mind. they claim
that the most likely thing to happen
to the District is an increase in the
tax rate.
The great fight which has been
waged for several years by the
citizens Of the District before
Congress. Is not 30 much for a
$3.50 basis Of paying the Districts
expenses, or even a 60-40 basis, 1t In
said, but a definite basis. that can
be relied on by the people Of the
city and the municipal officials, in
figuring out their taxes. II Congress
does not agree to a stipulated basis,
that will hold for a reasonable
period, 1t II said, that one year
Congress may agree to pay 40 per
cent Of the District expenses and the
next year only agree to pay 20 per
cent. Unless there is a definite agree
District, II In said that chaos Is
inevitable In tax matters, and real
estate generally.
$500. 900 This Year.
It IL estimated that under the pres
ont rate of 1872 per cent on all real
estate and improvements, without the
exemptions suggested by the Senate,
the District win collect $500, 900 In
taxes during the year ending June
30, 1923. In addition to this II ID
estimated that the District win collect
about $3,200,000 in personal taxes.
Under the Senate plan both real and
personal taxes would be cut to LIS
per cent.
Cuno H. Rudolph. president Of the
Board Of District Commissioner. said
today that he had not studied the
Senate plan and that until he did he