The Washington times., 1921-07-02
TAX RATE WILL
BE CUT TO $1.02
. in THE DISTRICT
Reduction From $1.o5 Follows
Recommendation Of Auditor
Donovan.

~~~'D'' ~ ~S&s W.
Donovan.
President Harding's plea for nor.
malcy throughout the nation has
been heard by the Commissioner Of
the District Of Columbia. 3,
Setting a pace for Congress, which
has not yet completed its tax revis-
ion, the Commissioners announced
yesterday reduction in taxes for
the fiscal year ending June 80, 1922.
MAKE CUT OF IL CENTS.
On the recommendation of Daniel ].
Donovan. auditor of the District. the
Commissioners reduced from Jos TO
$1,s2 the tax on each 500 of assessed
value of taxable real estate and tan
gible personal property. Before the
war the rate was $3.50.
Failure of the $3.50 plan, which
provides for half payment by the
Federal Government of District ex-
penses. to go through Congress. is
costing District taxpayers more than
80 cents on each 800 Of assessed
value of their property, according to
Auditor Donovan.
In recommending a tax reduction.
Auditor Donovan pointed out that the
high rate Of $1.95 In effect last year
resulted In taxpayers paying into the
Treasury S515. more than was
needed for the expense of the Dis
trict government. In addition, Dono-
van pointed out that taxpayers are
also paying 10 per cent more taxes.
occasioned by Congress- decision to
pay only 40 instead of so per cent Of
the District expenses.
Il am of the opinion that the ex-
cess revenue now existing" Corpora.
tion Counsel Stephens told Donovan
in a letter, should be carried for
ward into the operation of the next
fiscal year and be considered by the
Commissioners in fixing the tax rate
for that year.
WHAT CONGRESS INTENDED.
1T was the intention, OF Congress
that this power of increasing the tax
rate was given to the Commissioner
for the purpose OF producing an In
creased revenue TO meet the increased
cost thrown upon the District by the
1910 legislation. Certainly IL would
be inequitable to cast upon the tax
payers OF the District Of Coiumbia.
merely by inference, the burden of
not only paying this increase of 10
per cent In the share borne by the
District. but over and above that to
create a surplus fund which might be
done year after year. to lie idle In the |
Treasury"
In stephens letter he opens up the
discussion of surplus revenues in the
District and indicates that he be-
lieves the District should avoid hav-
Ing a surplus in the Treasury, point |
Ing out that Washington may never
hear OF IL again. This recalls to mind |
recent statements that the District
has sAoo0.000 OF surplus revenues in /,
the Treasury which II has been un-
able to get back since II was depos-
tied.
1t has been felt right along that
the Commissioners would make some !
tax revision. In The Times last
month II was predicted exclusively
that the Commissioners would bring
down the tax at least ten cents on |
800. The Commissioners went lit |
tie further and took thirteen cents |
off the tax.
WILL PRODUCE ss,s24..es.
The rate OF s1.s2 on the total esti-
mated assessment of $3.50. 795, 900 will |
produce s9.s24.2s9 in revenues. Total
for the fiscal year to-
tai s23.765. .222. 20. of which the Dis
trict must pay S14,30S,ss The diff
ference between the amount to be
derived from the s1.s2 tax and the
amount to be raised by the District
will be made up from special taxes
and incomes. Last year the District
collected s13. 1851 sn47, and appro-
priations of S12.T3e.773.09 were
against II. leaving a balance
or surplus Of more than half a million
dollars.
The report OF Auditor Donovan is
most interesting I'm that Il contains
ngures showing the increased value
the District. The increased values
make a tax reduction possible.
During the last fiscal year the as
sessed value Of taxable real estate |
was &434. T94, ,7s8, and Donovan has es-
timated the value for the present rs
Cal year at s454, T95 900. showing an
Increase OF almost 100000 600
An increase of assessed value of
more than $4,000. 900 of INTANGIBLE
personal property is reported. Last
year the value was s323. .es9, ,5sl on,
and the estimate for this year is
1894. 10000
For tangible personal property the
a assessed value last year was 1854
1892. compared with an estimate
for this year OF $4,000, 900.
During the past Ave years taxes on
public utilities, banks, building as
sociations and like corporations al
most doubled. In 1918 the District
collected ss35,1S2 and the estimate
for the present year Is 81. 500. 900.
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