Evening star., 1921-07-02
Lessons Burden Brought
Through Substitute Plan for
$3.50 Appropriation.
WASHINGTON TO BENEFIT
TO EXTENT OF 100000
Extra Money Can Be Used e.
fectively for Street Improvements
and Other Needs.


q present to the District from Con-
Gress. In the appropriation act.
which became operative yesterday.
there is tucked away a seemingly
,unimportant clause to the effect that
all miscellaneous revenues collected
by the municipality shall be divided
between the District and federal gov
ernments on the basis of so per cent
! to the former and 40 per cent to the
latter so as to conform with the
sixty forty appropriation plan under
which the District pays the larger
| share.
This is going to make difference
in favor of the District of some
thing like s16o.oO0. Not a large
!amount as government items go. but
large enough. when coupled with
40 per cent increase provided by Con-
,;ress when appropria tions are made.
| TO be used effectively for street I'M
provementS or other District needs
Division Will Enrich District.
When Congress. last year. substi-
tuted the 60-4O for the $3.50 appro-
,priation plan it failed to make a cor.
responding change in the method OF
dividing miscellaneous revenues. Con-
seauently. during the fiscal year that
closed June 30 The federal govern
ment appropriated only 40 per cent OF
the cost of running the District nut
took half of the miscellaneous rev
enueS collected The total OF these
collections was 1882, 1928.
II miscellaneous revenues DO not
fall behind this year. the 10 per cent
increase given the District in the 60
40 division plan will enrich the mu-
,licipality by more than $160000. and
it is not unlikely the gain may ex-
Ceed this figure.
miscellaneous revenue collections
last year went far beyond expecta-
tions When they were estimating
District revenues at the time of franz
ing last years budget the Commits
sioners allowed s1.229,450 for miscel-
laneous collections. This estimate
fell short of the amount actually col
lected by approximately 100000. MIS-
cellaneous items include fees, fines
and other charges.
Auditor Donovan'S report to the
Commissioners. which was the basis
of their decision yesterday to reduce
the tax rate from s1.95 to s1.S2. shows
District collections last year to have
been augmented from several sources.
The tax on public utilities, banks.
building associations. etc. produced,
for example about 100000 more than
was estimated when the budget was
being framed.
This tax has been growing by leaps
and bounds. In 1918 public utilities.
banks and building associations PAID
into the Golfers of the city 1885,: 900 In
1919 the amount jumped to S95l.234.
There was an increase to $1,11S.3S9 in
1920 and to s1.472, ,026.91 last year.
For the present year. in establishing
"a basis for a tax rate, the Commission
.rs have estimated that the income
from this source will reach $1.500.O0
The principal difficulty in making TINS
! estimate develops in the uncertainty
as to what rate of street car fare Will
prevail during the year. The District
h. onr n n
street car companies per cent
Last Collection Disappointment.
In one respect last years collec-
tions were a disappointment The
Commissioners had estimated the real
/ estate tax would yield revenue or
ss475S7O. The amount collected was
I ss.o24,344.So, or s451.525.2o less than
This was partly Offset by the col
leotions on account of the tangible
and intangible personal property
taxes. In the case of the former the
estimate was s1,230.63S. and the
amount received. s1,39a.473ss. or a
gain of s161.S37.SS.
For the amount to be yielded by
the intangible personal property tax
the estimate was $S50,000. The
amohnt collected was s916.5S3.41. or
q gain over the estimate of $66, ,5SS.41.
Amounts of Revenue.
SOmmeu up. the commissioners eS-
timated that receipts from all sources
last year would produce $12.935,956.
Collections, however, reached the to-
tai of s13.416.1S9.47. The tax on tan
Sible and intangible personal prop
s.rty, public utilities, banks. building
reipts showed a total gain over the
Commissioners estimates for these
stems of $931.758.67. But half of this
gain was wiped out when the tax on
Inc
than the Commissioners had esti-
mated it would The net gain in, COL
lections over the total estimate was
S4s0.233.47.
In reaching their decision to re-
duce the tax rate this year. the Com
missioners had to take into account
the total appropriations for the Dis
trict for the fiscal year ending June
so. 1922. which amounted to $685.
trict must provide s14.30s.sS1 Of this
amount The federal government
puts up the other s9.456.341.99.
On the basis of figures furnished by
Auditor Donovan, the Commissioners
seive this year s1,O00.0O0 from the tax
on intangible personal property,
s1.500,000 from the tax on public utili-
ties. banks. building associations, etc.
Items To these figures they added tho
sum Of $515.416.3s as excess revenues
of 1921. brought forward to 1922. This
gave a total of S4.685.416.3S, from
which they deducted $1S0,0O0 to be
set aside for the policemen's and fire.
mems pension fund The balance
then remaining was $4.5e5.416.
New Tax Brings Saving.
Deducting this amount from the
$l43oS,SS1. representing the Dis
trict's share under the 60-40 plan, the
commissioners found THAT they must
collect $9,So3.464.62 from other
sources in order to make up the Dis
trict's quota The only sources avail
able were taxable real estate and
tangible personal property.
On the basis of the estimated as
sessed value of taxable real estate for
the year, amounting to $454.795, 900,
and the estimated assessed value of
tangible personal property, amount
ing to SIS, 900. 900. the Commissioners
discovered that they had total as
sessed value of real estate and tan
gible personal property of $539.795.-
600, upon which tax rate of $1.S2
would produce $9.S24. .369.
In other words, with $4.505. .416 in
sight from miscellaneous and other
taxes and balances and $9,s03. .464.62
required to be collected through real
estate and tangible personal prop
erty taxes in order to make up the
Districts contribution under the ap-