The Washington times., 1921-04-03
WILL
.SAVE$54O,0O0
District Officials Confident Re-
duced Levy Will Provide
Adequate Revenues.
CHANGE Is DUE ON JULY !
New Fiscal Plan Figured to Fur
nish Annual Revenue of
$13,467, ,532.9 SO.
BY DAN Z. O'CONNELL.

By DAN Z. O'CONNELL.
Washington's tax rate will be low
cred beginning July 1. This is the
prophecy Of officials of the District
government. The rate, which is now
$1.95 per thousand, probably will be
reduced to $1.S5. This will mean q
saving to the taxpayers of the Dis
trict Of almost $4,000.
Commissioner Rudolph, chairman
of the Board of Commissioners,
hopes to reduce the rate, and Daniel
j. Donovan, auditor for the District,
has prepared figures for the Com
missioners showing what can be
raised at the $1.S5 rate.
1t fs) s)estimated that the revenues
from the reduced rate of taxes with
the money that is raised annually by
miscellaneous taxes, such as liccnses,
permits, etc. would prpdhce total
of S12<4a7.532.99 for the year ending
sJune 30. ls2a.
I The present appropriation bill for
the District Of Columbia CARRIED
S1s.546,062.99. This amount does not
include the money that Is also ap-
the water system and the Washing
ton aqueduct nor the items in tbs
/, Legislative appropriation bill, the
sundry civil bill, or the deficiency
bill, which will be submitted to Con-
gress next week.
II 1t is true that the reduced tax
rate will raise about $13,5OO, 600 at
the present system of the District
paying so per cent for it's upkeep
and the Federal Government paying
40 per cent. the LBS rate will be
more than ample to take care of the
Districts needs.
SURPLUS FUNDS RAISED.
The District has left over at the
end of the fiscal year hundreds of
thousands of dollars in surplus funds
raised by taxation This money has
to be turned into the Treasury De-
psrtment and cannot be taken out
without specific authorization by
Congress.
Last year the District collected
| over and above its expenses on the
6O-40 basis. s5s4,742.75. This money
is held by the Treasury. but the Dis
trict is unable to obtain IT.
Since 1916 the District has accumu-
lated a surplus of S4.64s. .66669 over
system of paying fifty per cent of the
| upKeep OF the city and the Federal
Government paying the other halt.
Steps were taken several months ago
to have this surplus applied to a
school building program. but the
measure failed owing to the short
session of Congress. II the surplus
is spent on the schools under the
| $3.50 plan under which 1t was ac-
cumulated, 1t will mean that Con-
gress will match the surplus, provid-
ing more than 100000 to build new
school structures.
The District has always had a sur
plus at the end of the year with the
exception of the period when several
large permanent improvements were
being built, notably the Connecticut
avenue bridge. the sewerage disposal
system and the Union station. Dur
ing this time the District borrowed
money from the Federal Government
| to the amount of about $4,000 900. The
District paid the Federal Government
two per cent for the use OF this
money and finished paying in 191a
CAN CHANGE GAS RATA
The Commissioners have authority
to change the tax rate provided they
do not go below S1.5O thousand,
which was the old rate, and 81 per
thousand which was the maximum
fixed by Congress last year. Commits
sioner Rudolph and Commissioner
oyster are firmly for reduction. but
IL is said that Colonel Kutz. the En-
gineer Commissioner. while not fight-
ing for it-favors a fat rate OF 81
per thousand.
Colonel Kutz's reasoning is said tn
be based upon the fact that IL the
District raises a large revenue that
Congress will match IL on the agreed
basis, either 60-40 or $3.50 or what
ever rate is fixed by Congress, and
that the District will benefit by tho
Improvements. that will be possible
with more money.
The civilian Commissioners how
ever. are not ready to agree with him
and they point out the surplus that
is evident at the end of every fiscal
year.
Officials of'the District Government
who have followed the question o.
taxes for many years today pointed
out that the District Is raising about
flour times the amount IL raise1
Twenty years ago. while the popula-
tion has only doubled. Twenty years
ago the annual levy of taxes in
Washington was between $4.00o.00o
And s5.ooo.0oo. Now 1t u about $1A0