Evening star., 1936-07-26
ECONOMY ORDERED
IN '3S ESTIMATES
by DEPARTMENTS
Public Hearings Planned in
September to Sound Out
Reaction to Budget.
HEAVY GAIN IS EXPECTED
I'm LEVY ON INTANGIBLES
Property Owners Warned of Pen.
alties if They Fail to Report
by End of Week.

In order to be prepared for any
Developments that might call for an
increase in the amount of revenue
supplied by local taxes. the Commits
sioners' Tax Revenue Committee has
been revived and will begin its studies
at meeting some time this week. In
the meantime. the Commissioners and
Auditor Donovan have instructed de-
partment heads to exercise strict econ.
omy in the preparation of their esti-
mates for next years budget.
While the question of the amount
| OF District revenues to be available
depends largely on the outcome of the
forthcoming determination Of the
Federal obligation by the President,
the Commissioners wish to be prepared
to answer any questions as to existing
and proposed sources of new local
revenue, which explains revival Of the
Tax Revenue Committee.
Public Hearings Planned.
At the same time Commissioner
Hazen gave assurance that the public
would get an opportunity to pass on
the estimates of the department: ex-
ecutives before the Commissioners send
them to the Budget Bureau. Public
hearings. similar to those conducted
in the past two years, probably will
be held early in September The Com
missioners are instructed to forward
estimates to the bureau by Septem-
Der Is.
The Tax Committee was created
last August. A partial report. sub
mitted to the Commissioners last
November, indicated the belief Of the
officials that some s7,O00,000 addi-
tlonal revenue would be needed if
maintenance and operation costs con-
tinued to rise while the District con-
tinued its program of Improvements.
The committee, headed by z. Bar
rett Prettyman, then corporation
counsel, made no recommendation
! for new or increased taxes, however.
but asked for instructions as to future
| necessities for maintenance, operation
and improvements.
Study Dropped in January,
The whole study was abandoned last
January when the Budget Bureau
slashed the 1887 budget. The bureau
estimates would have required no ad-
ditional taxes, even though the bureau
had rejected the plea of the Com
| missioners for an increase in the Fed
eral payment from $500, 900 to
S8,3l7 500.
AS the bill came from Congress,
however, additional items were in
serted and the Federal payment was
reduced by S700,000 Maj Donovan
now estimates that the present fiscal
year will end with a net deficit Of
$960,000 Total expenditures allowed
for this year, he finds, will exceed
general fund tax revenues within the
year by nearly S4O0OO00.
The Tax Committee was instructed
to study the whole tax problem and TO
consider inheritance and income taxes,
a weight tax for motor vehicles and
increased taxes on public utilities.
Also the committee was instructed
theaters, chain stores, public enter
tainments and other activities.
Six on Committee.
Present members of the committee,
in addition to Maj, Donovan, are Act
ing Corporation Counsel Vernon E.
West. Assessor Fred Allen. Peoples
Counsel William A. Roberts, Rich
mond B. Keech, vice chairman Of the
Public Utilities Commission. and Capt.
H. C. Whitehurst, director of high
ways.
Meanwhile, Deputy Assessor Charles
A. Russell, who has charge of per-
sonal property taxes, voiced hope for
levy on intangibleS.
He bases his hope on reports indi-
eating that the value of stocks and
bonds has increased about 80 Per
cent. At the same time he again
warned holders of Intangible, as well
as tangible personal property. they Will
face heavy penalties if they fail to
make returns before the end of thi1
week. He estimates that nearly 10000
persons have failed to make reports,
which are due during July.
Intangible Levy Higher.
The intangible tax levy during th2
1886 fiscal year, just ended, amounted
to S2,104, ,767, or SCI ,242 higher than
in 1885. The lowest point in the past
six years was reached in 1888, when
the levy dropped to 1898 ,202.
A similar picture is seen in the
tangible taxes. The 1886 total of ST.
021,8O1 was $47,9o6 higher than in
1895. but $374,811 below the total of
S1,396,612 reached in 1881. The low
was in 1884, with $94l,545.
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