Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-13
REDUCED REALTY
TAX URGED UNDER
MAPES GROUP PLAN
Collins Holds LevieS in Capt.
tai Should Be Less Than
in Comparable Cities.
ADHERES TO 100000
LUMP SUM FROM U. S.
Sees 100000 Leaving Federal
Treasury by Imposing
Estate Tax.

Representative Ross Collins of
Mississippi, Democratic member of the
Special Committee studying fiscal re-
lations and the tax system of the
Capital, today declared that any in
creased revenues brought to the Dis
trict from the imposition of new taxes
as proposed by the committee should
be applied to a reduction of eX-
listing taxes on real estate. The COM
mittee in statement issued Thursday
suggested inheritance, and automobile
weigh taxes and an increase i'll tax on
gasoline
Total taxes levied against the resi-
dents Of the Capital should be less than
the average for other comparable cities,
Mr.. Collins declared
Adheres to S9.000,G00 Lump Sum-
Mr.. Collins still adheres to the pres
ent lum-sum appropriation from the
Federal Treasury toward support of the
National Capital. He consistently has
expressed the opinion that 100000 is
fair contribution, holding it is a little
more than the tax bill the Federal Gov
ernmenG would pay if it were taxed.
He also figures that the imposition of
an estate tax would draw another
100000 out of the Federal Treasury to
the credit of the District. Mr.. Collins
will support the Mapes Committee find
ings.
Representative Collins hopes that
out of the Mapes Committees work
may come a. model tax system for the
National Capital that can be adopted
as a uniform taxation system for the
States. He believes in the total elm
ination of land taxes and points to
the record throughout the country
where in various States thousands of
pieces of property are abandoned TO the
State because the people cannot pay
the real estate taxes.
Tho taxing of real estate. he says, is
not the proper way to raise revenue,
and it is mistake to attempt to raiSe
additional revenue by increasing land
taxes.
Hits Tax on Intangibles.
There are certain forms of taxes in
the District which he believes should be
changed He argues that the personal
property tax on intangibles is nothing
but an assessment on mortgages and
deeds of trust on real estate. so that
the tax is in effect another tax an land.
If there is any justification for tax
on income, he said, there is infinitely
more justification for tax on in
heritance He pointed out that all es-
tate tax goes into the Federal Treas
ury. With a District inheritance tax,
he SAID, 80 per cent would so to the
CITY.
Going into the subject of taxing cor
porations on their ad valorem basis
rather than on gross income or gross
revenue, as recommended by the Mapes
committee. Mr. Collins pointed out that
the gas company pays 5 per cent, while
the telephone company is assessed only
4 per cent.
So there are Irregularities in those
taxes he insists. If they are continued
on the basis Of gross revenues they
-, = H. 1,ot 81 ! ho
same rate, Mr. Collins insists. Prac-
tically every community throughout the
country collects taxes on public serv-
ice corporations on an ad val9rem basis
he says. In the District Of Columbia
the basis for the ad valorem levy. he
emphasizes, should be on the present
valuation for rate-making purposes as
sworn to by the utilities.
Urges Fairer System.
Substitution Of an income tax for
the personal property tax on intanoiblcs
should raise an increase of about $780,,
900 more than is now being raised.
He considers this as negligible, as COM
pared with the Importance of getting
a fairer and juSter tax system.
Regarding the auto gGs tax increa7e
from 2 to 4 cents per gallon, recon-
mended by the Mapes Committee, Mr.
Collins points out that in Maryland
the tax is q cents end IN Virginia D
cents.
He also pointed out that all of the
States tax automobiles by weight.
George Lord employed rs tax expert
for the Mapes Committee, has estimated
that the increased gasoline tax and the
tax on automobiles by weight would
bring IN an additional $3,500,000 in
revenue. and that the estate tax would
yield something like another 100000.
Mr.. Collins believes that it will be i'm
possible to fix fairly just contribution
by the Federal Government toward sup
port of the National Capital as a cor
tinuing proposition. He thinks this
subject should be studied every four or
FIVE years and the Federal contribution
changed to meet changing conditions
A lump sum contribution of $4,000
900. which he considers So 100000 more
than the tax on Federal property owned
and used by the Federal Government.
would yield, he believes a proper con-
tribution for the next few years.