Evening star., 1923-07-05
Auditor Donoaan's Report
Reveals Balance RESPONSE
BILE for Reduction in Wash
ingtun Tax Rate to $1.2O.
URGES NEW CAMPAIGN
FOR OLD 4-MILLION FUND
Characterizes rs unjust Action
of Congress in Requiring Tax
payers to Raise $3,000,000.
Says $7,500,0oO Accumulated
Will Be in Excess of Needs.

After paying all of its expenses,
the District government closed the
fiscal year with surplus of $1,310.-
344.35, making it the most successful
year in the history OF the city. Dan
Iel I Donovan. auditor, told the
Commissioners today in his annual
report.
This balance will not be added to
the Districts old surplus of $4,45S,-
l54.92, which has been in the Treas
ury for number of years.
Factor in Reduction.
Under the flexible tax rate system
adopted few years ago, Maj. DON
ovan carries forward as a credit for
the new fiscal year any balance left
from the preceding twelve months.
This balance was one of the fac
tors which enabled the Commission
ers to order reduction in the tax
rate two days ago from $lD to $1.2O
per $l00 of assessed value.
The outstanding recommendation
in Maj. Donovan's report is that the
commissioners endeavor to obtain the
use Of the old surplus, the existence
or which was admitted by the Joint
Investigated the fiscal affairs of the
District last year.
Wanted for Working Basis.
The auditor recommends that the
city heads try to have this fund OF
more than four millions appropriated
for urgent municipal needs or that
they ask Congress to let the District
use it as a cash working fund and
thus relieve the city Of raising a
new surplus of s3,0O0,o00 by 1927 in
order to get on a cash basis.
The auditor characterizes as "un-
quiring Washington taxpayers to
raise $3.00o.0o0 between now and
1927 in order to pay its bills month
by month. when the city already has
more than sufficient to put the mu-
nicipality on cash basis.
Sees Surplus In Excess of Needs.
Mr.. Donovan points out that If the
city raises s3.ooo.oo0 by 1927 for a
cash working fund 1t will then have
a surplus in the Treasury Of $780,
0O0 a sum far in excess Of the cash
needs" Of Washington.
The report shows also that revenue
from practically every source in
tions. He believes that the large
collections on real estate and per-
sonal property taxes was brought
about by the new requirement that
I. IL
November and May-instead Of once
a year, as heretofore.
Calls Ground Rent Unjust.
The auditor also declares that the
new legislation recurring the District
to pay a ground rent of 8 per cent
of the value Of all property owned
by the United States and used by the
District works an injustice upon local
taxpayers. His report explains" in
detail his objections to this enact
ment.. The report follows:
THE fiscal year 1929 was remark
able for most significant changes In
municipal fiscal administration and
exceptionally large increases in cur
rent revenue collections. In proper
tion to the several levies more taxes
were paid within that year than in
any previous year. This, l believe,
was due principally to the legislative
requirement. for the payment of taxes
semi-annually, effective in 1923. for
the first time since 1900.
THE real estate tax levy for 1922
was SS.607.613, and the taxes remain
ing unpaid of that levy at the close of
while the levy for 1929 was ss.4O1.-
$50. nearly 100000 greater than 1922
with but s1.14S.628 unpaid at the close
OF the year.
Increase Of $sOO.OOO.
"The intangible personal tax levy
for 1922 was s1,oo7.24s. of which there
remained uncollected at the end of
the year $s1.679; while the levy for
1928 was s1.s25.3s5. an increase of
more than 100000 over 1922. yet the
unpaid balance at the close Of the
year amounted to only s101.952. not
withstanding the fact the rate was
raised by Congress. beginning with
that year, from three-tenths to Ave-
tenths of / per centum.
THE large surplus In 1923 was
due In large part also to the un-
usually large collections In practi-
cally all of the sixty-five items of
among these appear Police Court fines
with an increase of $125.094 over the
amount derived from this source In
1922; the proceeds from sales Of by
products of garbage and sales of mis-
Cellaneous trash produced S223,s sos
more than in 1922: and the tax on
motor vehicles. S84,501 more than in
1922
Urge Great Care.
THE tax rate Is fixed on or about
each July Cor the fiscal year then
beginning. The only definitely
known element at that time Is the
amount Of the regular District ap-
preparation act. The amounts that
may be required during the year for
deficiencies In appropriations and
under, permanent indefinite appropri-
ations are estimated. The assessed
value Of real and personal property,
the taxSg on gross receipts and earn
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