The Washington times., 1922-04-27

bic LEV|ES
URGE:D BY.
C0NFEREES.
CITY to Suffer II Recommen-
dations of Joint Committee
I Are Accepted.

Stunned by the body blow ad-
ministered the District of Column
bia late yesterday by the con-
ferees on the District appropria-
ton bill, now before Congress,
District officials today were un-
willing to discuss the matter fur-
ther than to express the nope
that the report of the conterees
will not be accepted when 1t Is
up for final action.
Here are some of the ways IN
which the District will suffer II
the conferees' report is adopted
by the House and Senate:
so Per Cent Tax Raise.
A tax rate equal to $2.35, based
on present assessments Will be
collected. In a word, 1t means
so per cent increase in taxes.
The Districts surplus of $5,l6O,-
1856, now in the Treasury, Will
be written off the books and cease
to exist.
District Taxpayers will be requir-
ed to pay, in addition to the so per
cent of District expenses an amount
equal to $4.000,O00 to $5,OOO.OOO
annually for the next five years to
provide a surplus.
The District will lose approx
mately $5OOOOO annually from mis-
cellaneous collections, such as PO-
lice Court fines, insurance taxes
and motor licenses.
Home builders will be taxed more
heavily for loans: renters will be
forced to pay higher rents and build
ing generally will be almost throttled
because of the increase proposed on
intangible property from three
tenths Of l per cent to one-half of
per cent.
Stiff Increase.
The official tax rate will probably
remain at S1.S2, the present rate,
but the assessment will be increased
from the present two-thirds on real
value to full value, so that instead of
paying $1.82 on $6G.66, the taxpayer
will pay 1882 on ever 500.
Placing the District government
on a cash basis IL going to work
hardship on local taxpayers. because
It will be necessary to raise within
the next five years between $15,000,-
900 and $2O,O00,000 as a surplus o.:
WnlCn TO operate.
At the present time nearly all of
the Districts revenue is raised in
May and June. In the other ten
months, beginning July l, the Dis
trict spends sums equal to almost
the total of its revenues. This is
possible by calling on the United
States Treasury by requisition.
The total assessed valuation OF
real estate in the District today is
S472, GAS ,S05. The proposed new
plan would increase this amount
by one.third or more than $780,
900 900.
Intangible property listed by the
District today is $3.50 900 900. The
experience of other States has been
that to raise the tax on intangible
property has caused owners to con.
ceal It, Raising the rate here al
most double may have the same
effect, it is feared, which means
the District will suffer.
With the raising of the tax on
Intangible assets the money lenders
who make home building possible,
will automatically raise their inter.
est charges so that the original len.
der will not suffer but the ultimate
user who in the nature Of things
"Oulu bt Nllt IlOIllt DullbtI anu
renter.
From miscellaneous receipts the
District now receives about 1900
900. The conferees would force the
District to pay 40 per cent Of this
sum into the United States Treasury,
q plan never before in force.
ID. c. Made Goat.
The compromise arrived at by
the House and Senate conferees on
the District bill was unexpected
and disappointing. In the words of
one official, it leaves the District
holding the bag"
Washington gained nothing out
of the tax fight, except fhat It
escaped the danger of the fixed
ratio between the Federal and Dis
triCt governments on tax matters
being abolished altogether. On that
point, the House Conferees were
adamant. What 1t hoped to gain,
however, was completely lost in
the shuttle.
A consolation prize was offered
the city in the 81 500 900 appropria-
. tion for the water supply and $780,
900 home for the feeble. minded.
The conference report on the Dis
triCt bill carries total of $780,
S9l $50, or an increase of S2,240,000
over the House bill The conferees
remain in disagreement on the
park purchase item and the $1,000
item for a tourist camp in East
Potomac Park.
Senator Phipps presented the par.
tial report of the conferees to the
Senate late yesterday afternoon, and
Chairman Davis, Of the House con-
ferees, will make his report to the
House today.
The Senate provision Of $3.50, 900 for
repairs and improvements for school
buildings and grounds was retained
torty-two patrolmen are added to the
police force: all increases of force 10
the fire department were denied. The
Senate conferees won out in most of
their contentious regarding specific
Items in the bill.
CAA.AA,y NNNua,aA