Evening star., 1931-12-15

than $750,000 annually and, as has al
ready been said, the tax will be much
more equitably distributed among ths
people.
An income tax would reach many
people well able to pay some tax TO-
ward the support OF government who
now pay no taxes, and 1t would reach
the income derived from intangibles
which intangibles are now concealed
from the taxing authorities Of tn,
District.
The committee. therefore, recon-
nends the enactment Of a law pro-
viding for . reasonable tax on income,
as q substitute for the present millag'
tax on intangible property. and is re-
porting q bill to put this recommends
tion into effect.
Taxation Of Public Utilities
All the public utilities In the Distric'
are subject to specific taxation or fran
chise taxes. The tax Is based on gros.
varies according to the class Of cor.
poration.
The rate on the gross earnings o.
gas companies is 5 per cent Electric
street-railway companies are taxed al
the rate Of per cent on gross receipts
Electric light companies are taxed at
per cent on gross earnings. Telephon,
companies are taxed at 4 per cent on
gross earnings
1t will be noted that these rates o.
taxation are unequal and therefore
violate the basic principle Of equality
in taxation. II the present system oi
taxing these utilities is to be continued
and the committee doubts its wisdom
the law should be amended so as tc
provide uniformity in the rate OF taxa.
ton.
According to figures furnished the
committee by the ONCE Of the District
assessor. If these various utilities were
taxed on an ad valorem basis of valua
tion the District would gain consider.
able revenue. These companies paid
last year in taxes a total Of S1,61l 900
1t is estimated by the District assessor,
ONCE that II they had been taxed al
the same rate Of taxation as imposed
on other classes Of tangible and in.
tangible property they would have paic
s2,50o,000, or approximately 5000 ,0ot
more than they paid under the present
system. The present specific tax or
lieu Of any ad valorem tax on tangible
personal property and the millage tar
on Intangible personal property.
In addition to these public utilitie,
there are two others operating in the
District now-the Western Union Tele.
graph Co. and the Postal Telegraph.
Cable Co. The Western Union Tele.
graph Co. last year paid in taxes only
s5,47l, and the Postal Telegraph Gable
Co. paid in taxes only S1,424 These
companies practically tax themselves
In that II has been the practice tc
accept without question a statement
from each of the companies as to the
value OF its property in the District fol
purposes Of taxation There never has
been any appraisal made Of its personal
property by the assessing officer Of tbs
District. The committee believes and
recommends that an appraisal Of the
property Of these companies In the
District should be made by competent
enginee s.
Ta-stion Of Steam Railroads.
There Is contained in the law govern
ing the taxation OF steam railroad prop
ertv in the District unique provision
as follows
TT being the true intent and mean
ing hereof that the lines Of railroads
and terminals hereby authorized shall
be assessed and valued f.r the purpose
Of taxation and taxei on the same basis
as If the same were not construed and
maintained by means OF such bridges
tunnels viaducts. retaining walls anc
other structures
The construction placed upon this
provision of the law by the assessing
cfncers OF the District is that the tun-
Nr hrtG
water communications in the District
the retaining walls around Union sta
tion and along Maryland. Delaware and
Virginia avenues and the iron viaduc,
located 1t the south end OF the tunnel
near New Jersey avenue and c street
southeast. are not subject to assessnlen,
for taxes
1t is estimated BY the District asses
sor. Mr Richards. that the value Of this
property. which is not now assessed for
taxes. IS anywhere from 10000 900 tc
sl5,Oo0,o00. II it was placed upon the
TAX rolls, the revenue derived therefron
would approximate 100000 annually
which Is nearly double the tax now i'm
posed upon railroad property in tbs
District. The total revenue the Dis
trict will receive from the taxation O,
railroad property this year amounts tc
SZ33,UIS.
The committee knows of no good rea
son why this property should be longer
exempt from taxation, and if it can be
legally placed upon the assessment roll
by an amendment to the law. the com-
mlttee recommends that the law b<
amended accordingly.
IL Is only fair and equitable that ali
prlvateiy owned property. especially that
useo for commercial purposes and profit
oe p!dced upon the assessment roll 70,
taxes. There should be no such thing
as iaVorhlsm in the levy OF taxes upon
such classes of property. All should he
treated with relative EQUALITY in tbe
levy of taxes.
Here follows a digest of the fedora,
aid to capital cities extended bv coI,n. :.
trles IN South America and Eurone
Inc Star will present the comnittee's
Iholngs In this respect later.)
Conclusions.
No one likes TO pay taxes The n.o-
pie OF the District of Columbia are M
exception to the general rule In this
respect. Nor is 1t a pleasant duty to
vote to impose tax burden upon any
one. II cannot be stated too emphati-
cally that no one, especially no member
OF this committee, wants to overtax the
people Of the District. At the same
tlire 1t is probably fair to say that the
people OF the District, being human, do
not want to pay any more taxes than
they are obliged to pay, and very natu-
rally resist any effort to increase the
existing taxes or to impose any addi-
tlohal ones, realizing, no doubt. that
whatever they pay, whether much or
little, the Federal Government will
MAKE up the balance necessary to run
the District government. On the other
hand, there are those who think that
the people Of the District are in a
privileged class as far as. taxation is
concerned; that they are not paying as
much toward meeting the expenses of
the District government as they should,
or as much as the people who live in
other, cities in the United States of
comparable size and advantages are re-
qulred to pay.
Should the people of the District be
required to pay the same as people who
llve IN other cities of comparable size
ana advantages, or should some consid-
Grafton or c0nenscior ho ui,ep thor, bo