Evening star., 1931-12-17

new local estate tax bill Is found in the
exemptions and deductions allowable in
figuring the net estate Of District Of Co.
lumbia decedents as contracted to Fed
eral exemptions. 20
Whereas the Federal law allows
fat deduction Of 100000 in addition
to all properly chargeable deductions
such as debts claims against the estate
funeral expenses, etc. the new local bill
mas exemptions much lower. This
would tend TO bring the computation of
the local District of Columbia tax still
closer to the amount of tax assessed by
the Federal Government or perhaps
even exceed it.
AS contraSted to the deduction, of
sl0O 600 allowed by the Federal Gov
eminent on which no estate tax is laid.
the new District bill provides deduc-
uonS as follows: There shall be de-
Quoted from the gross estate property
having clear market value Of $4,000
transferred to the widow of the dece-
dent. property having a clear market
value OF $4,000 transferred to the hus-
oano OF the decedent. property having a
clear market value of $4,000 transferred
10 a brother or sister of the decedent,
property having clear market value of
SZ,o0O transferred to any lineal ancestor
OF the decedent legally adopted child,
stepchlld, any child to whom the dece-
dent for not less than 10 years prior
10 death stood in the mutually acknowl-
eoged relationship Of parent" There
are further provisions concerning the
establishment Of the childs relation
snip. Then further. the bill provides
that IN case no property passes to any
oehenclarles enumerated in this section.
or II the aggregate Of the value CT the
property passing to such beneficiaries is
less than 81 900, there shall be exempt
eo property having value of 81 ,0OO''
Mellon Asks Boost.
Meantime Congress has been asked
oy secretary of the Treasury Mellon to
increase the rates of the Federal estate
YAK, pnt as his proposal would leave the
state credit at the same status as it is
now, there would be no change in the
amount OF money flowing to the Dis
trlct Golfers out OF the Federal estate
TAX. The Secretary recommended, in
eIect, return to the estate tax of 1921
whose rates are somewhat higher than
tne present, but he explained that lin
oroer to avoid the undesirable result of
automatic increase in State levies on
estates in certain States in which such
taxes are based on the present Federal
rates. 1t Is proposed that the increase
be effected by means of a supertax to
De imposed in addition to present rates,
WIN no deduction from this supertaX
LOT state taxes paid. Under such an
arrangement" he explained, amounts
OF state taxes paid would continue to
De allowed as credits against the Fed
eral tax as provided under the present
Jaw, up to 30 per cent of the latter tax,
nut the entire proceeds Of the proposed
supertax would be retained by the Fed
eral Government"
The new local estate tax, it Is esti-
mated by the report of the Mapes Com
mlItee, should produce an annual reve-
nue. OF not less than $75O,o00. The
commissioners Of the District Of Co.
iunola are given authority to SUPERVISE
enforcement of the act and to have
the tax assessed within 80 days after
the completion of the inventory Of the
estate by the Probate Court. 1t is to
ne collected by the District tax COL
lector.
Filing Time Set.
The Federal Government requires
that return shall be filed on the Fed
eral estate tax within one year after !
death Of the decedent, and that final |
audit and disposition of the case shall |
be made within three years after the
hling Of the return, but 1t is Gus
tomary to try to complete the whole |
procedure within one year. Credit !
would be given in the Federal estate |
tax, only for actual cash payment to
the District collector of the new local |
estate tax
The new District estate tax is only |
one OF four new tax measures intro |
duced into Congress as result of the
work OF the Select Committee investi-
eating. fiscal relations between the !
United States and the District of Co.
lumbia. 1t is part of the fiscal program !
of the committee which would decrease
The annual Federal contribution to the |
District of Columbia from $500 900 to
s6,500,0 900. The other new taxes pro-
posed provide for doubling the gasoline
tax from 2 to I cents. an income tax to !
be substituted for the intangible per-
'onal property tax, and Q graduated
automobile weight tax.
A