Evening star., 1926-04-11
TAX PAYMENT TIME
CHANGE ADVOCATED
District Committee to Take
Up Plan to Collect in Sep
tember and March.


semtannual payment of taxes from
November and May to September and
March will be considered soon by the
Senate District committee as one step
toward enabling the District govern.
ment to meet it's obligations from
month to month without having ia
build up too large a cash working
fund.
The amendment to be offered to the
District appropriation bill when it is
taken up in the Senate, making the
$9,0O0.000 lump sum from the Fed
eral Government available on the first
day of the fiscal year, is another move
toward permitting the city to meet its
bills month by month.
The taking of these steps is inn
portant to local taxpayers, because
If they are not adopted the Commits
sioners will have to raise by taxation
between now and July l, 1927, a sub
stantial surplus over and above cur
rent requirements, to comply with the
law of 1922, which said that within
five years the District should begin
operating on a cash basis.
Bill Not Yet Reported.
The District appropriation bill has
been approved by the Senate appro-
priation committee, but has not been
reported to the Senate yet. The date
on which it will be taken up for ac-
ton on the floor is somewhat uncer-
tain, hut it is expected to be consid
cred soon.
When Congress in 1922 passed the
law requiring the District to be pre-
pared by 1927 to operate on cash
basis the Commissioners and Auditor
Daniel J. Donovan estimated that
surplus fund of $4,000. 900 would be
sufficient to carry out the require
ment, and they proceeded on the
theory that by raising 100000 an
nually between 1922 and 1927, over
and above current, expenditures. they
would be able to meet municipal OBJ
legations monthly after that date.
Since 1922, however, the total of the
annual appropriation bill has been
steadily increasing with the growing
needs of the city, until now it has be-
come apparent to the municipal au-
thOritieS that unless taxes are paid
earlier in the fiscal year. the $1,000
900 surplus alone will not be sufficient
to comply with the mandate of Con
Gress after 1927.
Taxes Paid Too Late.
Under the present arrangement the
expenditures for the fiscal year begin
July l, but the first half of tax bills
do not come in until November, nearly
six months later. The final install
ment of taxes is not received until
May, when the year is nearly over.
In addition to making 1t cheaper
for the city to get on a cash basis in
1927, Maj. Donovan sees another ad-
vantage in the collection of taxes in
September and March, rather than in
November and May, namely, that 1t
will give the city more time in which
10 collect overdue taxes before the
fiscal year ends.
On the last day of May each year
there is a substantial sum still un-
paid on tax bills, and if these over
due bills are not paid in June that
part of the revenue goes over to the
next fiscal year. If taxes are paid
in March the city would have three
months before the end of the fiscal
year in which to round up overdue
bills, it was pointed out yesterday.
Other Changes Proposed.
The proposal to change the pay
ment of taxes to September and
March will be taken up by Senator
Cappers committee in connection
with pending bill to make certain
other changes in the law relating 10
assessments, including a change IN
The time for filing personal tax re-
turns. The date for filing these re-
turns will have to be moved up also
If a different time is fixed for pay
ment of taxes.
Senator Capper said last night this
legislation is being inquired into by
n subcommittee of which senator
Jones of Washington is chairman.
and action is expected to be taken
on il in the immediate future.
The municipal authorities nave
found since 1922 that it is going to
nrove a very difficult task TO the
neople of the District TO store up a
surplus cash working fund to enable
the city to pay as it goes unless the
steps outlined above are taken bN
congress. They have found that de
6ciencv appropriations which become
necessary near the close of fiscal
YEAR upset the calculations made at
the beginning of the year when the
lax rate is fixed. This factor has
hammered them since 1922 in at
tempting to build up the cash surplus
for 1927.
Cash Basis Believed Possible.
II is the belief of District off,
cials that if the tax-payment time
ia moved up and the Federal Gov
ernment's $9.000,000 is available at
the beginning of each fiscal year. the
S3,000,000 surplus fund now being
accumulated by local taxpayers. will
NIT the city on cash basis in 1921
The Senate appropriations COM
nittee in approving the District
hiH did not reduce the item for
new police station in the Tenley-
own section, as was published yes
terday. The reduction referred to
should have applied to an item for
salaries in the Fire Department of
from $1,000 to $3.50.