The Washington times., 1922-06-29
S1.25 RATE
IS F | n A |
ESTIMATE.
Figure Made on Full Assess.
ment, and Will Go to Con-
gress Saturday.

There will be no material in
crease in the rate of taxation in
the District Of Columbia for the
next fiscal year, it was indicated
today.
The new tax rate is expected to
be between $1.20 and S1.35
hundred. The best approximation
would place the new rate at $1.25
. hundred.
On Two Thirds Value.
On tho face 1t appears that the
tax rate IL being materially reduced.
last years rate being $1.s2. How
ever, last year the tax was made on
two-thirds assessment while this
year the tax Is on full assessment.
Therefore, It il pointed out while
the established rate is lower, the tax
payer, when the time comes to pay
his bill. will actually pay more than
he did last year by reason OF the
new assessment plan.
Major Daniel ]. Donovan, District
Auditor, will present to the District
Commissioners on Saturday a rec
ommendation for a new tax rate.
Major Donovan today began to figue
on what the rate would be.
Effective Five Years.
The amendment in the District
appropriation bill. requiring the Dis-
trict to be put on a cash basis by
1927, will have little effect on the
taxpayers pocketbook. This is ac-
counted for by the fact that taxes
will be paid twice year instead OF
once a year, thereby leaving many
millions in the Treasury to the
credit of the District.
When the new rate Is set Satur-
day It will be effective for five years.
However, II Congress decides that
the District shall get the benefit OF
its $5,o0O.0 900 surplus in the Treas.
ury a reduction in the tax rate will
likely follow, and the District tax
payers will be paying about the
same amount Of money they have
been paying in the past five years.
BY reason Of the new tax plan the
District will raise approximately $l,-
SOC, 90 more next year than in prevt
Gus years. OF this amount about
100000 will go toward creating a
surplus fund for the District In
Treasury vaults. The other amount
will have to be raised because car
tain changes in the laws will result
In the District losing about this much
annually.
The rate for personal taxes will
be automatically increased on July
], from three.tenths to five-tenths.
This 10 provided for by law. Consid-
cradle additional revenue will be OBJ
tained in this way.
Major Donovan faces difficult
lob in figuring the tax rate for the
fiscal year beginning July and end
ing June 80 of next year. He ex-
pects to finish his work Saturday
and submit his findings to the Com
missioners. Ire Commissioners are
expected to approve Donovan's rec
concentrations and order the new
rate effective.
Estimate Works Out.
Last year Major Donovan told
the District Commissioners that the
tax rate should be $1.S2 a hundred
in order for the District to raise
Sl4,308, 1881, which was needed for
the fiscal year.
Figures made public today show
that Major Donovan was correct
almost to a dollar in his estimates.
on June % yesterday the tax
office had collected $14,217,5 ,559.58.
Just $s1,321 short Of the required
amount. Today and tomorrow 1t
Is expected this $s1.S21 will be
collected.
The tax made effective for the
fiscal year beginning July / last
ends tomorrow.
1t was said today that II the
full assessment plan had been In
effect last year the tax rate would
have been $1.27 a hundred instead
Of $1.82.