Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-26
D. c. MAN ATTACKS
VIRGINIA TAX RULES
"Hot Dog Justice Case" Is
Recalled as Citizen Pro-
tests Income Levy.

With her famous hot dog justice
case" still pending on an appeal, Vir-
ginia. by virtue Of her State income
tax law. again finds herself at issue
with residents of the District of Co
lumbia who daily enter her borders,
it developed today.
Under the Virginia State income tax
law. residents of the District Of Co
lumbia who earn their salaries or.
through the conduct of business in
that State receive monetary liveli.
hood there, are obliged to pay a tax
to the State of Virginia on those in
comes, despite the fact that they may
not vote in Virginia and that they pay
the personal property tax levied by
the District government.
An issue has been made Of the case
by r. B. Swope, president of an oxy-
gen manufacturing company, whose
plant and offices are located at South
Washington, Arlington County, Va.
Mr.. Swope's company pays the Nir-
ginia State corporation tax and he
himself. being resident of the Dis
trict of Columbia, pays the District
personal property tax and the Dis
trict of Columbia automobile tax,
sends his children to District schools,
and is a bona fide resident of the
Capital.
Receives Tax Blank.
Last year he received a Virginia
State income tax blank similar to thu
Federal income tax QUESTIONABLE. Up
on the informal advice of Arlington
County revenue authorities, who, he
declares, told him the State income
tax law would certainly be altered In
Its relation to non-residents, Mr..
Swope ignored the tax blank. Recent
ly. however, he was notified by the
Arlington County commissioner of
revenue that the State income tax
would have to be paid
Mr.. Swope wrote letter, July I, to
c. II. Morrissett, Virginia State tax
commissioner, in which he formally
registered his objection to the payment
of such tax and in which he request
ed Mr.. Morrissett to advise your in
structions regarding the payment of
this tax. giving it to me in such form
that / may present 1t to the (District)
Commissioners for their information.
In response Mr.. Morrissett wrote
under date Of July that under the
Virginia income tax law a non-resi-
dent receiving income from labor per-
formed in this State Is taxable upon
that income. The Term labor per.
formed carries with it the idea of
physical presence in Virginia when
the labor is performed. If you spend
an inconsequential part Of your time
in Virginia you are not subject to
taxation on your income derived from
the Southern Oxygen Co.. Inc. On
the other hand, If you spend an ap.
preciable amount Of your time in Vir.
GINA In performance Of your duties
nc A( 1n
1t may be said that your salary Is
earned by the sweat of your face in
Virginia, then you are taxable upon
such income so earned in Virginia"
collector ON Principle"
1t so happens that by availing him.
self Of all the exemptions allowed by
the law Mr.. Swope complied with the
legal requirements by merely filing
the QUESTIONABLE and without the &C.
tual payment of the tax. But he has
expressed himself as an collector on
principle" on behalf of the 20 members
of his company's roll of Is, who are
bona fide residents of the District of
Columbia.
Harry Green, revenue commissioner
OF Arlington County, said this morn.
ing that the rate of taxation under the
Virginia income tax law is the same
in its application to residents of
Virginia who work in that State, to
residents of Virginia who work outside
the State and to non-residents of
Virginia, who work within the State.
Only employees of the Federal Govern.
ment are exempt from taxation under
the State law as this exemption is
guaranteed them by a Federal law.
Hundreds Of objections have been filed
against the payment of income taxes
under the State law by non-residents
of Virginia. Mr.. Green said, and it is
likely that some action will be pro-