Evening star., 1932-04-24

Of Representative to study the fiscal
relations between the District and
United StateS-which said
The committee feels that the changes
recommended in the laws relating to
the taxation of certain public utilities
and of the property of the steam rail-
loads should be considered and perfected
by the regular standing legislative COM
mittee on the District of Columbia; that
to perfect such legislation would re-
quire more time and consideration, in
cludmg the hearing of those interested
end affected by the proposed changes,
than this committee is justified or war
ranted IN taking for that purpose.
Cannot Be Defended.
1.-The steam railroads operating in
the District have for the last 80 years
escaped assessment for bridges, tunnels
and other structures because Of a pro-
vision of law which certainly cannot be
defended on the grounds of fairness
The assessors Office has estimated
that the taxation of these railroad
structures would bring in about 5000 900
a year. The exemption from taxation
OF these valuable properties is rank
favoritism and should have been cor
lected long before this time.
1t is pointed out also in the Mapes
Committee report that heretofore the
telegraph and cable companies operat-
ing in the District have paid taxes on
the basis of statements made by them
to the assessor. The properties of these
companies have never been appraised
oy the assessor for taxation. Such ap-
pralsal certainly should be made.
The basis in law for the methods
and rates of District taxation of prop-
erty Is found largely in a rider on the
District appropriation bill for the fiscal
year 1908. 1t is high time that some
OF the arbitrary rates set up in the
law should be studied with a view to
equalization and proper distribution OF
the tax burden.
The rates in the law range from 1la
per cent for bonding and title insur-
arce companies to 4 and per cent for
public utility corporations and per
cent for national banks and all other
incorporated banks and trust compa-
nies These are all taxes on either gross
earnings or gross receipts.
Will Introduce Bill
II am unable to discover the reason
for the vide disparity in these tax
rates, and 1 see no reason who so many
of these corporations, which have bene-
flied for so many years under an ex-
eremely lentent tax system, should not
now be called upon to carry their share
Of the load.
ITO accomplish this purpose. I in
tend to introduce in the Senate to-
morrow bill providing that hereafter
all incorporated banks and trust COM
panies shall pay tax of s per cent.
in lieu Of personal property tax, on
all their earnings except earnings from
taX-free securities; that bonding COM
panies, title insurance companies. and
public utilities companies generally
shall be assessed and taxed on their
real estate and tangible personal prop
erty in the District as other such
property is assessed, and that they
shall pay in addition a franchise tax
of per cent on their gross earnings.
Steam railroads. interurban trolley
and bus lines, telegraph companies,
cable companies and steamboat COM
panies will. under the terms of the bill,
pay a like tax on their real and tangible
personal property and the intangible tax
for the current year upon the amount
of business transacted in the District
during the preceding year.
"All structures erected by public
utility companies on public space, either
above or below the ground, are to be
taxed as private property to such utility.
but are not to be enhanced in value be-
cause so erected.
Would Double Tax.
"The total tax that would be paid
under the proposed law by the local
utility companies. it is estimated. will
amount to $2,815,683, as against the
taxes paid by these companies under
existing laws, amounting to 81 ,366,240.
The proposed change in the law would
therefore increase the taxes to be paid
by the companies by S1,449, ,443. making
a total tax more than twice the amount
the utilities are now paying
This estimate does not include the
revenues which the bill would
bring IN from steam railroads and vari-
Gus kinds of enterprises which are now
paying only fraction Of the tax that
should be assessed against them"
The law which the proposed bill
would revise includes the tax provisions
on banks and trust companies, but the
senator's bill makes no change IN the
present rate applicable to those insti-
tutionS.
Wants Dlh otuuICus
In concluding his statement, Senator
Capper said:
In view of the fact that the Senate
District Committee is now considering
bills to provide new sources Of revenue
Tor the District, and in common jus-
tlce to the real estate owner who for
many years has been bearing the
greatest part Of the Districts expenses.
l think that we should not overlook
this opportunity to correct an ineuuity
Of long standing and tap a neglected
source Of revenue.
L think that the Bureau Of Eff
cheney should be asked to study and
report upon this BILL as it has per-
formed useful and valuable service in
the effects of the other bills
sponsored by the Mapes committee.
The District Commissioners and the
Public Utilities Commission will also
be. interested in, this proposal, in my
opinion.
After assembling from all authorita-
tive sources available all information
that may be useful to the committee
in considering this proposal, the public
will be given ample opportunity to ex-
press its views at hearings before the
committee"
NrUIFH n-h-r~ HosH