Evening star., 1924-04-23
SIGNS
BILL MAKING AUTO
RECIPROCITY FINAL
Act Providing Gasoline Tax
Approved Despite Protest
of Civic Bodies.
COMMISSIONERS PLAN
TO ASK SOME CHANGES
Clarifying of Law So q. S. Will
Pay Fair Share of Street
Costs Desired.

COStS UeSlreQ.
Automobile reciprocity between the
District of Columbia and the state of
Maryland was made permanent today
when President Coolidge signed the
so-called gasoline tax bill.
With the signing of the bill it was
learned that the District Commis-
sioners will make every effort to have
Congress clarity the language of it
so that the federal government will
not be relieved of paying it's fair pro-
portion of the cost of street work in
Washington.
Automobile owners in the District
of Columbia now will be required to
pay a tax of 2 cents on each gallon
of gasoline used and An annual fee
of 81 for license tag. These taxes
are in lieu of the present fee re-
quired for license tag in the Dis
trict, which is SO, IS or $40, accord
ing to the horsepower of the auto
mobile, and an additional license fee
to travel within the borders of the
state of Maryland.
Property Tax Retained.
The present personal property tax
assessed in the District on automo-
biles at the rate of s1.20 per 500
on the valuation of the car will be
continued under the provisions of the
law.
According to the language of the
law. the gasoline tax will become
effective thirty days from today.
while the permit fee will not be put
into effect until January ], next.
Although reciprocity is not speci-
fed in the law, this is guaranteed
by an agreement between the Dis
trict and the Maryland authorities.
1t has been estimated by District
officials that the cent tax on each
gallon of gasoline used will net at
least 100000 the next year, which
sum, according to the language of the
law, must be placed in a separate fund
in the Treasury and used only tor the
Improvement OF streets and roadways
in the District.
Expect 100000 in Fees
The 81 permit fee is expected TO
realize 100000 next year, which
revenue will go into the regular
District fund in the Treasury and will
be used under the present 6040 fiscal
agreement between the District and
federal governments.
Although this Legislation was op-
posed by the leading trade and civic
bodies of the District, who made a
formal protest week ago to the
President against its becoming a law,
the action of the latter in approving
it was not unexpected. He was known
II h hl.r, Il
by the large vote in Congress favor
ing this legislation.
To reaSSure himself as to the posi-
BILE benefits of the bill to the people
of the District, he asked the Commits
sionerS of the District for an express
sion of views. 1t is understood that
the Commissioners in their reply to
the President day before yesterday
neither approved nor disapproved it,
They explained the features of the
Legislation and called attention to the
opposition to it, and pointed out the
fiscal aspects, but made no specific
recommendation.
Secs Fiscal Policy Hit.
The Presidents attention was di-
:ected in the petition left with him
by the trade and civic bodies opposing
the Legislation to the fact that by
directing the revenues from the gas
tax to be used in u separate fund
for street improvements. the present
fiscal relations between the Distric.
ously endangered.
Upon learning that the President
had signed the Dill, Commissioner Ru-
doIph instructed Daniel f. Garges,
secretary to the board of Comnis-
ovan and Corporation Counsel Ste
phens in careful study of the word
ing of those sections relating to tho
use of the 100000 of gasoline tax
money.
District authorities said today that if
Congress would proceed to make the
regular annual street appropriations on
a 60-40 basis and at the same time al
low the Commissioners to spend the
100000 OF gas tax money on additional
street work the law would be an advan-
tage by enabling the city TO put it's high
ways in good repair.
Different Effect Possible.
They are convinced, however. that as
the phraseology now stands the real eff
feet will be that the $500, 600 paid as gas
tax by the motorists will be applied to
the normal street appropriations, leav-
ih6 Ohis q " pe dpprC-
priated by Congress on the 6o-40 basis
It was definitely learned at the Dis
trict building today that the money
raised from now on by the gasoline tax
will not be available for expenditure un-
til the fiscal year beginning July /, 1925.
so that the new law will have no effect
whatever on street work during the
next twelve months.
But, assuming that the gas tax had
been in effect during the past twelve
months and that 100000 was now
in the Treasury for use on the
streets, analysis shows that If Con-
gress only authorized for street
work the amounts allowed by the
House subcommittee on appropria-
tions, the federal government would
make practically no contribution
for highways in the coming fiscal
year.
Cut In United States Aid Seen.
The new appropriation bill as re-
ported to the House yesterday car
ried a total of $1,352.75o for all
phases Of street Improvement If,
as District officials believe, Congress
intends to require the District to
apply the 100000 of gas tax money
to that appropriation. there would
remain only $452,75O to be appro-
priated on the 60-40 basis.
The fedepal governments 40 per
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