Evening star., 1935-10-22
McCarl Turns Down Ickes
Plea for Fund to Pay
Levies.
P. w. A. HEAD HOLDS
SUMS SHOULD BE MET
Police and Fire Protection and
School Facilities Are Services
Withheld by Towns.
BY ]. A. FOX.

Many municipalities in which the
Government Is setting up low-cost
housing projects are refusing to fur
nish fire and police protection and
educational facilities to the residents
Of such areas because no realty tax
may be levied to compensate the
cities for those services.
This became known today when
Controller General McCarl turned
down request from Public Works
Administrator Ickes to pay approx
mately $500 annually to the city OF
Atlanta, despite Ickes' contention a
serious situation will otherwise be
created.
Ickes said he felt the attitude Of
municipal officials is not unreason-
able" McCarl took the stand it is
unreasonable and such payments
would be illegal
One Of the most serious difficulties
which will be encountered in the op-
Grafton of the low-cost housing and
slum clearance projects constructed
by me-" Ickes told the controller,
arises from the fact that property
owned by the Federal Government
is not subject to taxes by States and
| municipalities.
Unless the tenants of these projects
receive police and fire protection and
the use Of schools and other NUM-
.cipal facilities furnished by cities In
which such projects are located, few
people will care to reside therein.
Taxes Pay Costs.
Normally, these municipal serv-
| ices are furnished to the inhabitants
Of city without a charge therefor,
but the cost is met by the city
through taxation.
Many cities have informed us that
in view Of the fact that they will not
receive any taxes from these projects,
they will not be able to furnish such
services to our project. 1t must be
acknowledged that the position taken
by such cities is not unreasonable.
| The cost to the Government OF
supplying these services directly would
be prohibitive, and for the operation
Of the projects some arrangement must
be made which will be satisfactory to
the cities in which these projects are
located"
The P. w. A. head then outlined the
Atlanta situation, where the author
tiles have fatty said that no service
will be furnished for which they are
not paid. There are two projects in
Atlanta. One is treated in detail
| fleetwood. In this, the Government
has taken over land on which the city
formerly derived about $4,000 in an
nual taxes.
The tax rate for the city Of Atlanta
is SIS per thousand, and the basis Of
assessment is approximately 10 per
cent Of the properties actual value" /"
Ickes wrote. If the project we're
privately owned, the city tax which
would have to be paid on the property
would be approximately s3l ,99950. the
estimated value of the project when
completed being s2,875,00o.
THE project when completed will
house 604 families or practically three
times the number of people who for
merly lived in this area, and using the
family unit as basis and measuring
the amount to be paid to the city, the
city would be entitled to $9.192 .88.
In discussion with the city OF At
lants, the city officials have indicated
they will accept per cent of the
rentals Of this property.
The estimated rentals will amount
to s192 900 a year This per cent is
| "a he
viously, collected by the city. but Is
muchA than the taxes an individual
would have to pay based on the value
OF the property as improved, and is
practically identical with the rate per
family which the city received before
the taking over of the land by the Gov
eminent.
Il consider a S per cent payment 70
the city fair and reasonable COM
pensation for the services and facili-
ties which it will supply, and feel that
it would be for the best interests OF
the Government to enter into an agree
ment with the city of Atlanta to OBJ
tain such services"
City Held Benefitting.
In turning down the request, NC
Carl said that while the houses now
are being rented, it seems possible
that eventually they will pass to pri-
vste ownership and will then become
liable for municipal taxation. At
that time, he felt, the lag in taxes
would be made up.
Further, McCarl held. the new
building has benefited the commu-
nifty and he took the attitude that
the city itself should recognize this.
aside from the foregoing" he con-
cluded, "the rule is well established
that the Federal Government or its
| activities may not be taxed"