Evening star., 1933-06-11
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some surplus funds must be provided
to care for emergency needs, and fore
cast call for between $750,000 and ST.
000, 900 more for emergency unemploy-
ment relief than provided by Congress.
In releasing the report Of the auditor
and announcing the fixing of the new
rate, DR.. Reichelderfer pointed out that
the Commissioners have taken advan-
tage of their first opportunity to con-
slider the reduction of the tax rate.
Equalizations Being Made.
During the fiscal years between 1880
and 1893, inclusive, Congress has pre-
vented by legislation any reduction in
that in this period the surplus revenues
of the District have amounted at one
time to as much as $9,500,000.
THE savings of real estate owners in
the fiscal year 1884, as brought out in
the report of the auditor, amount to
$780, 900, equivalent to IT'S per cent
as compared with the 1888 real estate
levy. In addition to this there is a
further saving of $4,000 to owners of
tangible personal property arising from
the new rate of $1.50, equivalent to IL
per cent as compared with the Sl.70
rate.
THE above factor of IT'S per cent
cannot be applied to each case or hold.
ing since reaSsessments and equaliza-
tions are being made which change the
base. If the property is assessed at the
same value as formerly the difference
will be around IL per cent. If there is
reduction in the assessed value, then
the difference will be greater than IL
per cent"
Maj Donovan reported that the
present fiscal year would close with a
deficit of $514,894, but estimated this
would be eliminated by release of beer
taxes and license fees and by unex-
pended balances of 1888 appropriations
Auditors Analysis.
The auditors analysis of District
finances follows:
THE act of June 20, 1922, makes it
the duty of the Commissioners Of the
District of Columbia annually to ascer-
tain, determine and fix such rate of
taxation as may be necessary to raise,
with other revenues of the District Of
Columbia, SUFFICIENT revenue to pay the
Districts proportion of appropriations
annually made by Congress and other
charges arising under permanent and
indefinite appropriation items. This act
further provides that If, for any fiscal
year after June 80, 1927, the District
of Columbia should raise and deposit in
the Treasury to its credit more money
derived from taxation and privileges
than may be necessary for the above
purposes. such excess shall be available
the succeeding year in the discretion of
the Commissioners ait6ar fCr tho y,Y,r-
pose of meeting the expenses charge
able to the District of Columbia and /or
for the further purpose Of enabling the
Commissioners to fix lower rate Of
taxation for the year following the one
in which the excess accrued.
At the beginning Of the fiscal year
1880 the District of Columbia had in
the United States Treasury to its credit
surplus revenues Cncluding the cash
fund of 100000 raised under the act
of June 90, 1929 amounting to So
$780, 1854. Notwithstanding the fact that
the act Of June 20, 1922, vested the
Commissioners with discretion to use
excess revenues in reducing the tax
rate, Congress, to prevent any possibility
Of such action being taken by the Com
wrote into the District ap-
preparation act for the fiscal year 1890
a prohibition against any such action
being taken by the Commissioners by
"'And the tax rate in effect in the
fiscal year 1929 (S1.70 rate) on real es-
tate and tangible personal property sub
ject to taxation In the District of CO.
lumbia shall be continued for the fiscal
year $780,
Had s9,46s,143 Surplus.
"At the beginning of the fiscal year
1881, the District of Columbia had in
the United States Treasury surplus rev.
enues Qncluding the cash fund of So
100000 referred to) of $9,469,143 And
again in this year Congress prohibited
any exercise of discretion by the Com
missioners toward reducing the tax rate
by writing into the District appropria-
ton act for the fiscal year 1881 the fol-
lowing language:
"'And the tax rate In effect in the
fiscal year 1890 (3170 rate) on real es-
tate and tangible personal property sub
ject to taxation in the District of Co
lumbia shall not be decreased for the
fiscal year 1881
'At the beginning Of the fiscal year
1882, the District of Columbia had in
the Treasury surplus revenues (includ-
ing the $1,000 cash fund referred to- of
S4,271 ,522. The District appropriation
act for that year again prohibited any
reduction in the tax rate through the
of the following language:
And the tax rate in effect in the
fiscal year 1881 ($1.70 rate) on real es-
tate and tangible personal property sub
iect to taxation in the District Of CO.
lurnbia shall not be decreased for the
fiscal year 1882
"At the beginning of the fiscal year
the Districts surplus in the Treasury
had fallen to s542, 1923. and this in
cluded the exhaustion Of the $3,000,000
cash fund. Nevertheless, Congress, In
the District appropriation act for that
fiscal year continued its prohibition
against any consideration by the Com
nissioners Of reduction in the tax
rate by providing that the tax rate in
effect in the fiscal year 1882 ($1.70
rate) on real estate and tangible per-
'onal property subject to taxation In
The District of Columbia shall not be
decreased for the fiscal year 1889
THE fact should be noted that dur
ng these years, while the CommiS-
sioners were prohibited by law from de-
,reasing the tax rate, they fixed for
each Of those years the lowest tax rate
hey could legally approve, namely,
s170.
Other Items Increased.
'The District appropriation bill for