Evening star., 1933-12-20
DISTRICT RUM TAX
/. PROPOSALS AWAIT
CONGRESS ACTION
Estimate of 100000 In.
come From Liquor Levy
Is Discarded.
ALLEN BEGINS RESTUDY
OF SUGGESTED D. C. LAW
Early Action Is Anticipated as
Rainey Agrees to Bring Up
Measure Second Day.
Early Action Is Anticipated as
p..,.r, Ar l. ~
The District Commissioners decided

The District Commissioners decided
today to delay their recommendations
on liquor taxes here until after Con-
gress has determined definitely what
is to be the Federal levy.
This throws into discard, for the
time being at least, rough estimates
by District officials that the consump-
ton OF legal liquor here might benefit
the District Golfers annually to the
extent Of $1,O00,OOO or more, both
from sales and license and revenues.
Meanwhile, Maj. Daniel ]. Dono-
van, District auditor. continued to
gather all available data of what would
be the expected consumption of liquor
here.
Commissioner George E. Allen today
began a careful restudy of each pro-
vision Of the proposed District liquor
law. in conferences with Corporation
Counsel William w. Bride and his prin-
cipal assistant, Vernon E. West.
Early Action Is Seen.
The proposed measure, in final form,
according to present plans, is to be sub
mitted to the Commissioners for their
action Friday. 1t is then to be sent to
the chairman Of Senate and House Dis
trict Committees.
Early action by Congress on the
measure is anticipated. since Speaker
Ratney has agreed to have the measure
brought before the House on the Sec
ond day Of the session.
Commissioner Allen has stated he be-
heves 1t will be possible to permit the
sale OF legal liquor in Washington in
O hnr fyrr4 ef@z
the bill by Congress. He said the Com
missioners were considering the use of
temporary licenses, if necessary, to per-
init an early start Of the flow of legal
liquor.
The Commissioner said this expedi-
ent, such as was invoked last March
after Congress passed the District beer
law, would not be adopted, however,
unless 1t was necessary. He prefers to
employ only permanent licenses and
believes requirement for bonding of
licensed dealers, as contained in a new
provision written into the Commission
ers' bill, will speed up the license work.
ThiS provision would require that all
applicants for license file with the Com
missioners bond from an esta ablished
surety company, acceptable to the
United States Treasury. Allen said he
had been informed the cost of 81 900
bond would be $40 a year.
Share Urged for States.
A dealer having a good record, Allen
believes, would be able to obtain a bond
quickly. This double-check against the
reputation of dealers, he said, likely
will speed issuance of licenses.
The suggestion has been advanced
that the Federal Government return to
the States portion of the Federal taxes
levied on the sale of liquor. The mat
ter will be determined by Congress
Members Of Congress have indicated
they would insist that the District sales
taxes be the same as those for Mary
land.
The Commissioners will suggest a
scale Of sales taxes on spirits, wines and
beer for Washington as soon as the Fed
eral system has been settled by Con-
gress. 1t was indicated the Commits
sioners also will defer definite decision
as to what are to be the license fees
until the tax matter has been settled.
A guess has been made by District
officials that the total District revenues
from liquor sales might run to s1000,-
000 Allen believes the total will be
possibly as much as $1,250000. There
WSS q rOugn estimate LlaL consumption
of spirits here would amount to $50 900
gallons year. Figuring the Districts
population at 100000, this would
amount to an average of about seven-
tenths of gallon year per person.
Consider Fee Scale.
The early estimates of $1,000, 900
revenue were based on assumption of a
tax of s110 a gallon on spirits, as was
adopted for Maryland.
The Commissioners have been con-
sidering the following scale for license
fees. decision on which now has been
deferred: Distil1ers, $4,000 annually;
wholesalers. $1,000; retailers. $500;
hotels, $1,000; private clubs, $500; drug
stores, selling on prescription, $25; and
railroad dining cars. SIS month. They
figured beer taxes at 81 barrel, as at
present
The license system would be operated
by a board Of three commissioners
whose salary would be $4,000 year,
under present plans. Allen estimated
that the board would need staff OF
between Is and 20 persons. 1t was esti-
mated that the administrative cost
would be about per cent of the total
revenues, Nor $4,000 if the revenue
totaled Sl,000,000 annually.