Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-27
Double Taxation.

NioSeS loiloWlHS the case or the
Washingtonian who because of a
temporary and occasional residence
IN Virginia is required to secure a
motor license in that State without
respect to the rule of reciprocity
which admits District motorists to
the Old Dominion on their local tags,
comes another instance of the tax
gathering enterprise of the State.
Twenty of the employees of a COM
pany established on the Virginia side
of the river, who are bona fide resi-
dents of Washington and as such
are subject to the personal property
tax in this jurisdiction, have been
cited to pay income taxes In the
State because that is the scene of
their labors. though not of their resi-
dence.
While the District has no income
tax law, residents of this jurisdic-
ton are subject to a personal tax
which Is based upon their income
yielding possessions in addition to
any real estate they may own. This
is equivalent to an income tax in
effect. The fact that the scene of
their labors may lie outside of the
District should not warrant any fur
Their imposition upon their personal
revenues. They are not residents of
Virginia or citizens of that State. If
for their greater convenience they
move into the jurisdiction of Vir-
gina they are, of course, subject to
a personal tax and an income tax
there, inasmuch as the State main
tains both forms of taxation. But
they are at the same time in that
case relieved Of the District per-
sonal tax. 1t Is only a step beyond
the present double taxation to which
these Westinghouse doing business
in Virginia are now subject to their
mulcting in triple taxation by the
imposition of an assessment upon
their personal property as well as
their incomes, although their per-
sonaI property may be held in this
jurisdiction.
This matter of taxation should be
settled by the question of residence,
not occupation. In the opinion rem
dered by the State tax commissioner
at Richmond it is pointed out that
under the State law nonresident
receiving income from labor per-
formed in that State Is taxable upon
that income, and that the term labor
performed" carries with it the idea
of physical presence in Virginia when
the labor is performed. There seems
to be a question of the amount Of
time spent within the State. which
puts a premium upon "split-second"
observation.
There may be no effective appeal
from this procedure, which imposes
a double tax upon Washingtonians
who chance to be located for business
purposes only in Virginia, but the
effect of this imposition is certain to
be unfavorable to the State in the
matter of the location of industries
within it's boundaries. Every COM
munity wants new business, new in
dustries. It should attract them by
making conditions favorable and not
by undue taxation. In point of fact
the Virginia tax laws present many
anomalies and should be revised in
the interest of greater equity for all
the taxpayers of the State, those who
do business and reside therein as
we'll as those who reside elsewhere
and do business within the boun-
daries. A great multiplicity of taxes
now rests upon the people of the Old
Dominion. There are numerous forms
of impost that are out of harmony
with the present general mode of
revenue raising in most common
wealths, and it would SEEM to be
desirable that this matter be taken
up seriously and thoroughly by the
State with a view of clearing away
these inequalities and inequities.
Meanwhile, the double taxing of
Washingtonians who are compelled
to go into Virginia daily in pursuit
of their business calls for particular
remedy without delay.