Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-19
Efficiency Bureau Preparing
Statement After Study Of
Fiscal Relations.
PURCHASES IN TRIANGLE
RAISE FEDERAL HOLDINGS
Theoretical Tax Yield From Gov.
eminent Would Be Increased
by 100000.

A report on fiscal relations between
the Federal and District Governments,
now under preparation by the Bureau
Of Efficiency, Is expected to show the
justification for . larger contribution
by the United States toward the ex-
penses Of the municipality than the
ss,5OooOo appropriation for the cur
rent fiscal year.
The bureau Is basing the report on
the result Of an exhaustive study Of the
financial relationship between the
United States and the District, and
comparison of Washington's tax sched-
ule with those Of IA other leading
cities of the country. The data COM
tanned in it will be similar. to that as
ssembled by the bureau for the House
subcommittee on appropriations In
January, 1929, only 1t viii be brought
up to date, using the 1880 census hg-
ures instead of those previously used,
and taking cognizance of changed con-
ditions in washington, due to the 81
gantic Federal building program.
Anticipating House Probe.
The report Is being prepared in an
ticipation Of 8 call for aid from the
the closing hours Of the last session
Of Congress to study the question Of
fiscal relations. Although the COM
mittee has not asked the buerau for
any information, the resolution pro-
viding for its creation authorized Il
to seek the assistance of the efficiency
experts If 1t 50 desired, and also author
lied the reimbursement Of the bureau
for the expenses incurred in its work.
The bureaus report Of 1929 contained
no recommendation, but in an accoras
panying summary pointed out that e
was the opinion Of the investigators
that the solution of the fiscal relations
problem may lie in determining the
Governments liability toward the cost
Of operation and maintenance Of the
National Capital along two lines-its
tax liability as municipal taxpayer 81
Washington in connection with the or
nicipality; and It's liability On account
Of the extraordinary expenditures cc-
casioned by the fact that Washington
Is the Nations Capital.
Solely on Its tax liability as Q munich
pal taxpayer the bureau ct that time
computed the Federal Governments
taxes in the 1928 fiscal year ct &7,440,-
csc. No attempt was made, however,
to compute the liability on account Of
casioned by the fact that washington
Is the Nations Capital. Neither did
the bureau place valuation on the real
property used for park purposes ex-
clusively by the District.
Tax Calculations.
The tax On real property owned by
the Federal Government at the then and
still current tax levy Of $1.To, the
bureau calculated would have amounted
to $5,452,767 on valuation OF $500
ISL, O15. The Governments tangible
personal property tax was given as ST.
536,315, on valuation Of $9O,371 $50.
The intangible personal property tax
was placed at $451 ,857, using the same
valuation as to tangibles of 500, ST. .46O,
because the bureau said it found that,
on the average, the intangibles Of the
principal business houses Of the District,
practically equaled the tangibles IN
value.
In arriving at the tax liability on real
property, the bureau did not include
in its estimate the value of the land In
the Pennsylvania Avenue-Mall triangle,
which is being acquired for the Federal
building program. The total assess
ment on this area, according to the
figures Of Tax Assessor William p.
Richards amounts to approximately
ST., 000,0 although he said 1t would
cost the Government approximately
25,000,0 900.
Even on the basis of $17,000,000
assessment, it was pointed out, the tax
liability on the land alone would be
increased $685. 900, while the improve
ments, estimated at $50,00O,000, would
add $850,000 more, bringing the total
well over 81 ,000, 900 on the real prop
erty item. Thus, the total tax liability
of the Federal Government as q nili-
nicipal taxpayer alone would be raised
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