Evening star., 1923-04-29
D. c. ABLE TO MEET
CUT IN REVENUE
Decision of Controller Gen.
eraI Reduces In
come 1864, 1000.

The District government will col
lect ample money this year to meet
its so per cent of appropriation s. de-
spite the decision of the controller
general Of the United States yester-
day, reducing the city's annual in
come approximately s364,ooo, District
officials believe.
The controller general ruled. un-
der new clause in the current ap-
preparation act. the District must
give Uncle Sam credit for 40 per
cent of ten classes OF revenue here
tofore deposited to the account of
the District.
Prepared for Decision.
1t is understood that when Daniel
j. Donovan, auditor, fixed s1.3o a slOo
Of assessed value as the tax rate
necessary to enable the city to meet
It's obligations he made allowance for
the adverse decision by the Treasury
yesterday.
10 what extent the decision will
increase the burden of the local tax
payer for the new year, beginning
July l, cannot be forecast until the
May collections of real estate taxes
are made
The brief but far-reaching clause
In the current law which cost the
District s3S4,0o0 yesterday, provides.
that after June 80, 1922
any revenue derived from any activity
or source whatever, including motor
Fehlcle licenses, not otherwise herein
disposed of, which activity or source
OF revenue is appropriated for both
the United States and the District Of
of Columbia shall be divided between
the two In the samesproportion that
each has contributed thereto.
Thirteen Sources Affected.
Mr.. Donovan found at the beginning
OF the fiscal year that there were
thirteen such items of revenue being
credited wholly to the District which
might be affected by the provision
OF Congress. They are: Miscellaneous
reimbursable taxes, Police Court
fines, Juvenile Court fines, elevator
operating permits, steam engineers
licenses. insurance licenses, motor
vehicle permits, plumbers licenses
market rents, motor vehicle tags
dog taxes, business licenses and in
surance taxes.
The controller general decided that
only three of the thirteen could be
retained wholly by the city, namely,
dog taxes, business licenses and in
surance taxes. All money collected
from the other ten must be divided
60-40.
The decision of Controller General
McCarl covered forty pages. and ex-
planned in detail his reasons for
holding that ten of the disputed items
OF revenue must be divided with the
federal government, 60-40.
AS to Police Court fines, the de-
cision said, in part:
whether at any time after the
act Of June II, 1873, and prior to the
act of 1922 1t was proper for the
District Of Columbia to receive credit
for the whole Of the revenues from
the Police Court is not a matter here
for determination, the matter for
consideration being the application
Of such revenues on and after July
/, 1922.
THE activity or source from which
these revenues are derived. namely,
the Police Court, is an activity or
source of revenue appropriated for
both by the United States and the
District of Columbia, and as sucn ap-
pears within the intent of the pro-
vision in question. 80
OF the ten classes of revenues
which the controller holds must be
credited 40 per cent to the federal
government, Police Court fines hit
the District hardest. These fines for
the last fiscal year;amounted to near
ly $500, ,ooo,' 40 per cent Of which
must now be given to Uncle Sam.
4 a