Evening star., 1934-09-17
First Public Hearing on
Budget Requests Opens.
Sales Levy Urged.
ASSOCIATION OFFICER
GRlLLED AT HEARING
Apartment House Situation Re-
vealed as Best in Years-Pet.
worth Group Asks Library.

A debate over whether taxes should
be increased In the coming fiscal year
to meet requested public improve
ments marked the opening today Of
the first public hearing ever con-
Quoted by the District Commissioners
on departmental budget requests.
The first witness, David A. Baer,
vice president Of the Building Owners
and Managers Association of the Dis
trict, was met with barrage of ques-
tions from the Commissioners after
he had vigorously opposed any in
crease in the present $3.50 tax rate or
the imposition of any new taxes.
Commissioner Hazen pointed out
the 1886 budget requests of the de-
partment heads, exceeding $51 ,000,-
600, are about $13,00o,0o0 more than
can be raised on the existing $3.50
levy.
What are you going to do about
these Departmental" asked Hazen. "If
you cut them, they are going to be
crippled, especially the schools and
welfare"
Suggests Sales Tax.
Baer finally admitted that II it
we're found necessary to raise addi-
tional revenues to meet urgent needs,
he personally would favor q local
sales tax rather than an increase in
the $50 levy on real and personal
property.
Examination of Batr by Commits
sioner Allen revealed that the apart
ment house situation in Washington Is
better than it has been since 1929 and
that vacancies are about per cent,
compared with IL per. cent a year ago.
Rentals, Baer said, are between IL and
is per cent lower than in 1929.
"You are in great s1ape-there Is no
doubt about that" remarked Allen.
I'VE are Just at the beginning Of an
opportunity to recoup II conditions
continue to improve" Baer answered.
Commissioner Allen also brought
out that there is no N. r. A. code for
apartment houses and then asked
Baer what his association had done
to aid the administrations recovery
program.
Holds Question Unfair.
He replied nothing" but said:
You will have to give us little more
time. Our improvement has come in
the last go days. I don't think 1t is
fair to ask that question"
Baer said his association represent
ed about Is per cent Of the apart
ment house and Office building owners
in Washington and in answer to q
question by Allen predicted there
would be no change in rentals In the
coming year.
Baer pointed out that a survey Of
apartment rents in November, 1882,
showed that 81 out Of every So paid
in rent went for District taxes. This
figure, he said, is probably less today.
In the case of Office buildings, the
proportionate tax to gross income or
rent, he declared, is considerably
higher. Fifteen per cent, he explained,
would be conservative figure. This
means, he said, that a tenant who
pays $2.50 a square foot actually pays
a tax Of at least 3715 cents and often
as much as so cents foot year for
each foot of space he rents.
1T follows" Baer declared, "that
any increase in taxes will be borne for
the most part by home owners and
those who pay rent. Three out of
four families live in rented houses.
IF all the requests were adopted.
real property taxes would increase
almost 10 per cent. This would, in
the case Of most rental properties,
amount to confscation. 1t is doubtful
that any investment property in
Washington could stand any such
tax increase since few earn more
than 3 or 4 per cent and hundreds
are in the red
THE additional amount requested
for relief alone-about $4,000, ,000-
may mean a 26-cent rise in the tax
rate.
when thousands Of home owners
Of every kind of property have been
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