Evening star., 1934-10-21
FEDERATION VOTES
PLAN OF REVISING
DISTRICT TAXATION
so Per Cent of Sale Value
Assessment Instead Of
100 Proposed.
LARGER FEDERAL
PAYMENT INCLUDED
Increasing Levy on Utilities and
Estate Tax Among Six Pro-
posals of Civic Group.

The Federation of Citizens Asso-
Citations last night adopted set Of
resolutions, for the most part unani-
mously, looking toward radical over
hauling of the tax system of the
District.
Briefly, the federation wants:
l. Increased taxation of public util-
tiles;
2. An estate tax in the District;
8. Assessments on property at so
per cent of its sale value, instead OF
the present 100 per cent;
4. A curb on relief expenditures;
S. A larger Federal payment, and
6. No exemptions for the properties
of national or other associations, unless
strictly religious, educational or chart-
table organizations.
The delegates had before them q
series of reports on the various sub
jects prepared by a special committee
on the tax problem headed by L. A.
Carruthers. A committee, headed by
President James G. Yaden, will wait
on the Commissioners this week to
present and urge adoption of the fed
eration's program.
Tax Rate Important.
The most comprehensive report
adopted was the one recommending
making assessments for tax purposes
on the basis of SO per cent of the sale
value. If this were done, and the tax
rate increased from $3.50 to SO, Mr..
Carruthers pointed out, each taxpayer
would pay the same amount of taxes
on his property. But District spokes-
men would be better fortified in their
pleas to Congress for an increase in
the Federal payment. He said many
members of Congress will not listen to
these appeals because their consider
alton of the problem stops with the
tax rate.
Your people here pay $3.50 and
my people back home pay So, is a typi-
cal comment" he said. ITO make the
rate So here by decreasing the as
sessment basis would rob congress
men of this argument"
The federation, however, is opposed
to any increase in the tax rate, and
the resolution was carefully worded
to meet this seeming conflict.
1T is fully realized" 1t said, that
any reduction In assessed valuation
would result in q corresponding in
crease in tax rate In order to produce
(but without increasingly . given
amount of levy"
Influence on Congress.
"It is the belief of your committee"
the report said, that Congress is
governed largely in determining the
amount of the Federal Governments
obligation by a comparison of tax
rates in the District of Columbia with
their own local rates. The first de-
parture from the substantive law
providing a 60-40 ratio of District
and Federal payments) came with
the change from an assessment on
two-thirds value basis to true value
basis with corresponding reduction
in rate, and it is noted that with each
reduction in rate or the continuance
of a higher rate, which created q sur
plus, that the Federal appropriation
is decreased"
AS to public utilities, another report
pointed out that these corporations
now pay various forms of gross or net
receipt taxes in lieu of a personal
property tax. But the report said
they should pay the receipts tax for
the privilege of using the streets and
for the monopoly, and should pay
their personal property taxes just the
same as other private corporations.
A uniform tax on gross operating
receipts was suggested.
The estate tax suggested would not
place any news burden on the tax
payers. 1t would simply mean that
of the estate taxes now paid to the
Federal Government, 80 per cent would
be given to the District, as is the case
in most States.
Tax-exempt Property.
On the subject of tax-exempt prop
erty, another report said the fedora
ton "abhors the continued withdrawal
by various institutions of taxable real
estate not to be actually used for
religious, educational or charitable
purposes and the allowance of the said
real estate to be free of District real
estate taxes and other assessments
chargeable against and paid by other
real estate" 1t recommended that the
corporation counsel and other ap-
propriate District officers investigate
to see whether there is any property
tax exempt that should be on the tax
rolls.
The resolution on relief was brief
and suggested that applicants for relief
should be made to prove a two-year
residence in the District before being
cared for out of Federal funds, while
transients should be cared for out of
Federal funds. In connection with this
resolution, Mrs. Elizabeth Sullivan
offered a second, calling for the ap-
pointment of a special committee to
investigate the entire relief situation
This committee will be appointed by
President Yaden later.
Other members of the committee
who win call on the Commissioners
this week are Thomas e. Lodge, Mrs
Sullivan, William NICK. Clayton and
Mr.. Carruthsrs.