Evening star., 1922-06-29
DONOVAN TAX RATE
FIGURING JUSTIFIED
Payments for Year Total
Virtually Exact Sum of
D. c. Expenses.

The closing of the financial year
1922 is bearing testimony to the ac-
curacy with which Maj. D. J. Dono-
piled his figures for the tax rate of
s1.s2 per 800 valuation of taxable
items during the last year.
That tax rate raised a total of $14.-
217.559.5S up to, but excluding. June
80 The amount needed for the Dis
trict funds was $14,30s,sS1, and the
returns for the last two days, it is
expected from statistics in the hands
of the collector of taxes. will just hit
the sum dollar for dollar, with a
small amount left over.
Last year the tax rate of $1.95 per
from tax collection of $515.416. which
was applied to the account of the
District for the current year.
Accurate Figuring Needed.
When it is realized that a cent per
500 in the tax rate makes a difference
of $4,000 it can be seen that accurate
figuring was necessary to bring the total
return up 10 point which is almost
figure for figure of the amount needed.
Next year the District, under the new
appropria tion bill will lose s500,000 by
the provision which cuts into the COL
lections of miscellaneous items for 40
per cent. Heretofore these items. in
cluding the police court fines and the
insurance taxes. fees and licenses. have
been turned over to the District wholly
But the new law stipulates that the
money the District raises under this
classification during the coming fiscal
year must be credited 40 per cent to
the federal government and so per, cent
to the District. The Police Court fines
alone brought in about $360,000 last year.
while insurance taxes netted figure in
the neighborhood of 100000. All told
the miscellaneous items, which include a
number of similar taxes, totaled about
$1,200.00 Forty cent Of this amount
means $4S0.000 which the District will
not get the benefit of during the COM
ing fiscal year. although it is money paid
in the form Of taxes, licenses and fees.
Rate for Next Year.
Maj. Donovan is now working on
the figures for the tax rate Of next
year. A number of changes compli-
cate this work. Instead of basing the
rate on the two-thirds assessed val
uation, the rate will be figured on
total value of property. which for real
estate may mean a lower figure per
s100. but which will make up for that
lower figure in the total tax paid.
An interesting quirk in the new
working order comes in the personal
tangible tax line. Heretofore the
tax on this type of property has been
the same amount per 500 as on the
real estate. But the personal tan
gibles. instead of being figured on a
two-thirds value for assessment, has
always been figured on full value.
When the drop per 800 comes in
the realty tax, then, which means no
real intrinsic drop in this tax, there
will be drop in the personal tangi-
Bile, for the reason that it has always
been figured at full valuation, and
the raise, which affects the assess
ment value of real estate. will have
no effect on the personal tangible
tx; az ,ns..no.. . ,,o ooo
worth of property in real estate, here
tofore has been assessed on about a
$500 basis. A man who has $1,000
worth of personal tangible property
has always been assessed on a $1,000
basis. Now, If the tax, say, was 81
per 800 previously, the realty tax
would be 81 for the real estate own
er and SO for the personal tangible
taxpayer. But, under the new ruling,
when the realty will be 100 per cent
assessed value, II the tax rate should
drop per 800 to, say, IS cents. the
real estate owner on his $1,000 as
sessment would pay $3.50. and the
personal tangible property owner
would see his SO tar dwindle also to
$3.50.