Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-11
BUREAUS FISCAL RELATIONS REPORT GIVEN TO HOUSE
D. c. TAX COMPARED
WITH OTHER CITIES
Large Exempt Area Here
Pointed Out in Survey
Made for Congress-,

Continued From First Page.
period that the Federal Government
had come to recognize that certain eX'
penditures on account of the operation
and maintenance of the District were
| national in character. From 1886 tc
1870 the Federal Government paid $12,'
98618.80 toward the support of tht
District of Columbia, while the resi-
dents paid $17,716573.38 during thai
period.
| No Plan Provided.
The act of June 90, 1874, created a
| temporary form of commission govern
| ment for the District, under which the
executive authority was vested in three
| Commissioners, appointed by the Pres
| ident of the United States. by and
with the advice and consent of the
Senate. and the legislative functions
were reserved by Congress to itself, AT
| the same time provision was made for
the appointment of joint select COM
| mittee to prepare a suitable form OF
government for the District of Column
bia and to report to Congress drafts of
| statutes to carry its recommendations
| into effect.
No definite plan of contribution by
the Federal Government toward the eX-
penses of the District of Columbia was
provided for. pending the determination
of the fixed form of government al
though the committee recommended a
division of the expenditures for the
District between the Federal Govern
ment and the citizens on the basis of
SO per cent each. During the period
1870-1878 the Federal Government con-
tributed $18385, 857.59 toward the cost
of the District government, while the
citizens paid $29,569, 598.48; the total
expenditures for the entire period 1900
1878 were, therefore: Federal Govern
ment. $32.413. 755.05: District of Co
lumbia, $51 ,407, 1892.
After consideration of various pro-
posals over period Of four years, Con-
greSs, by an act of June IL, 1878, made
eminent for the District of Columbia
This act still remains the organic law
of the District, although it has under
gone many alterations.
BY the act of 1878 the Federal Gov
eminent obligated itself to defray the
cost of operation and maintenance of
the District of Columbia. A review of
the records of that period indicates
that the determining factors in arriving
at the so per cent figure were % the
extraordinary expenditures that were
necessary in developing the District of
Columbia on a scale laid out for the
Capital of the Nation, and (2) the large
real property holdings of the Federal
Government, which we're variously esti-
mated from 40 to so per cent of the
total property of the District.
Continued Until 1921.
The $3.50 basis. as it came to be
known popularity, continued unchanged
until the fiscal year 1921, except for
occasional provisions that certain mis-
cellaneous revenues of the District of
Columbia be credited on so per cent
basis to the District and the Federal
Government. However, the plan was at
tackled in Congress from time to time,
particularly on the score that the citi-
zens of the District were undertaxed,
and upon several occasions, notably in
1896 and 1915, special studies of the
subject were made by congressional
committees, which brought about no
change. 1t is interesting to note that
statements presented to Congress by the
Assessor of the District of Columbia
in 1915 indicate the estimated value
of Federal real property holdings for
281 .474 covered parks and reservations
The assessed valuation of taxable real
property for that year was $390,098,-
$40. These figures are all on a two
thirds full value basis. The Federal
property holdings, including park prop
erty, therefore, constituted 1858 per cent
of the whole or 1872 per cent, when
park property is excluded.
Congress, in making appropriations
for the District of Columbia for the fis-
cal year 1921 provided that 40 per
cent of the sums necessary should be
appropriated out of any money in the
Federal treasury not otherwise appro-
priated, and go per cent out of the
revenues of the District of Columbia.
The same provision was contained in
the appropriation act for 1922, and in
1928 the 60-40 basis was provided for
that and subsequent years.
The appropriation act for the year
ending June 30. 1925, provided the
specific sum of 100000 as the
contribution of the Federal Govern
ment toward the expenses of the Dis
trict of Columbia, ignoring the 60-4O
ratio in force under the substantive
law. This lump-sum item of $9,000,-
600 as it has come to be known,
has been appropriated as the share of
the Federal Government each year
since, and it is included in the Dis
trict budget for the fiscal year 1880.
It compares with S25, 970,008 collected
from general property taxes, special
taxes and business and non-buSlneSS
licenses for the fiscal year 1928. The
remaining $3854,377 of the $38,824,-
385 budget for that year was met by
collections in trust and special funds,
including the water and gasoline tax
funds, and miscellaneous revenues.
Under the $3.50 and the 60-40 plans
the miscellaneous revenues were, with
few exceptions, divided between the
Federal Government and the District of
Columbia in the same proportions.
Table Is Given.
In order to show exactly how the
60-40 plan works out for given budget,
as far as the actual net amount pay
able by the Federal Government is
concerned, we give below an analysis
of the District of Columbia budget for
1890. assuming that the 60-40 appro-
priation basis is still in effect.
Total District of Columbia budget ~ ~. soo
Less trust and special funds;
gasoline tax items, water fund Sam
ltemS ..,............' '.'''''''' o'A1'"o'
Divisible items. 500, 1912
| 40 per cent of Invisible items pay
ment $13,515,117
| Less miscellaneous revenues cred
ment 60 40 1,015,00O
| Net amount of budget of $39.-
Governmerit $l2, 500, III
In other words. the net amount OF the
1880 budget that would be payable by
the Federal Government if the 60-4C
plan we're. still in operation, namely
! S12,500,117, would represent 3l.30 pei
cent of the total of $39 1886, 622.
| The estimated value of Federal prop
erty holdings for the year 1928 was
| S442, 827,203 Excluding property used
of which $122,076,188 covered parks