Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-03-01
|$1,5OQ,0()D TAX CUT
IN SENATE RIDER
$4,000 Exemption on I'm
pr0vementS Would Lower
Total One-Fifth.


from the tax collections of the Dis
trict government if Congress passes
the local appropriation bill with the
Senate rider providing for new
financial arrangement with the fed
eral government
This was the estimate today of Dis
trict Assessor William P. Richards.
who indicated that the proposed leg
islation would play havoc with the
real estate tax bills of Washington
property owners.
Most of the confusion, Mr.. Rich
ards says, would result from the last
clause of the Senate rider. which
stipulates that the assessor shall eX-
empt the first $4,000 of value in as
sessing improvements. After study
ing the situation Mr.. Richards sub
mitted this statement to Commission
er Rudolph, chairman OK the board
of Commissioners:
Less Than $4,000 Buildings.
THE proposition to exempt the
District of Columbia will have the
effect, believe. of cutting down the
tax on real estate about one-fifth, or
more than a million and half dollars.
1.-The number Of brick buildings and
stores in the District is about $4,000.
There are 10000 frame dwellings,, IS
hotels, 20 theaters. 1000 apartments
valued above $4,000, and 1900 sta
bles and garages. The total number
Of buildings of.all classes is less than
10000.
If there is an exemption as noted
above, it will apply to large as well as
small. and it can be roughly stated
that $4,000 buildings will average the
S2,o0O exemption, or a total of about
$l00,o0O,OO0 in assessment.
mere examination of the numer-
lcal assessment books will show that
row after row of houses in the north
east, southeast and southwest will
be wiped from the assessment list,
leaving, of course. the land to be
assessed. The effect will be to have
buildings in the northwest part of
SO far as improvements go, and, of
course, the other effect is that a
greater burden will be borne by land
values"
Fear Result OF Rider.
While the Commissioners made no
official statement of their views on
the Senate rider, it is understood
they fear the results of destroying
the principle of a fixed ratio of ex-
pense between the federal and Dis
trict governments.
The Senate rider abolishes the
60-40 arrangement and provides that
the federal Treasury shall make up
what is needed above District taxes
to meet the appropriations. Another
clause fixes the tax rate at $1.75
which will further reduce District
revenues.
Assessor Richards also called at
tention today to the fact that the
$4,000 exemption clause would re-
lfeVe from large amount of taxes
landlords who own many small rental
properties.
VIII Call Bill Up Soon.
The District appropriation bill will
be called up for action in the Senate
at the earliest opportunity, Senator
Phipps of Colorado said today. Sena.
tor Phipps is chairman of the sub
committee which redrafted the bill
measure on the floor of the Senate.
The Senate is engaged in the con-
sideration of the treaty with Japan
regarding the Island of Yap, upon
which it is to vote tomorrow. Senator
Cummins. has urged that the bill in
be taken up next. 1t may be a day
or two therefore before the District
bin can come UP in the Senate. How.
ever, Senator Phipps is prepared to
call it up when opportunity offers.
In reporting the bill to the Senate
the Senate committee on appropria.
tions. recognized the justice of the
contention that the bonded indebted.
ness of the District-the 3.65 bonds
should be met equally by the federal
government and by the District.
The committee amended the pro-
vision of the bill relating to the in.
terest and the sinking fund for these
bonds so that they should be pay
able one-half out Of the revenues oi
the District and one-half out Of the
federal Treasury. -
In substituting the. so-called Jone:
bill, dealing with the fiscal relations
of the District. for the House 60-40
|. plan of appropriating. the committee
makes provisions for the use of the
surplus revenues of the District
which have accrued in past years
and which amount to more than
| $4,000.000. The committee proposes
that these surplus revenues. which
represent the excess revenues OF the
District over the amount called fol
to meet appropriations, shall be ex-
pended for the benefit Of the District
in addition to current revenues OF the
District