Evening star., 1937-04-01

for each child under l8 years OF age
and for each additional persons who
is actually supported and entirely de-
pendent upon the taxpayer.
Every nonresident whose income is
earned in the District would be re-
quired to file return, but those who
live in States where incomes already
are subject to State tax would be
given credit for the amount paid to
the State. Virginia has an income
tax law, but Federal employees are
exempt from payment Of the State
income tax. Maryland, on the other
hand, does not have State income
tax law.
Under the Collins bill, il resident
OF Virginia who earns his salary in
the District has TO pay a tax Of $25
under the Virginia law and would
have to pay a tax OF $50 under the
proposed District income tax, then he
would be required to pay only IS TO
the District, in keeping with the credit
plan. Federal employees not living in
the District would be exempt Since
MARYLAND has no income tax, all
Of its residents whose income is
derived in the District would be re-
ouired TO pay the full tax.
The credit allowance would not be
applicable, however. to persons from
States whose income Is derived from
the District, II those States do not
grant similar credits to District resi-
dents under their income tax laws.
The proposed tax on corporations
Is designed as a tax for the privilege
Of doing business. 1t would affect
every domestic and foreign corpora
tion doing business In the District.
In the case OF foreign corporation
the tax would be based on the portion
OF the stock represented by the prop
erty owned or used in the District.
If the capital stock increased. the cor
poration would pay in proportion TO
the amount OF the increase.
The bill stipulates that each share
OF stock having no par value shall be
considered to have value OF 81 or
such value as fixed by the corporation
for sale or the value dete- lined by
the tax assessor. There would be no
tax on capital and surplus stock rep
resented by property used exclusively
in interstate commerce. Corporations
failing to file report on the value OF
their capital and surplus stock would
be liable for fine Of 500 in addition
to IS for each day Of delinquency,
plus interest.
The bill relating to insurance COM
pAnies requires them to pay an annual
license fee of $25. and prescribes as q
penalty for failing to procure a license
a flne Of 500 for each day company
is engaged in business without a
license. The companies also are re-
ouired to file an annual statement
with the superintendent of insurance
Of their operations. A $40 filing fee
also Is required Revocation OF the
license would be the penalty for failing
to file the annual statement.
Divide ds Exempted.
The companies, in addition, would
be required to pay tax amounting 70
2 per cent of the policy and member =
ship fees and net premium receipts on
all insurance contracts on risks. Ex-
empted from this tax would oe
premiums returned on policies can
celled or not taken. premiums paid
for reinsurance where the same are
paid to companies licensed to do busl-
ness in the District, and DIVIDENDS
paid in cash or used by policyholders
in payment of renewal premiums.
Registration fees for private motor
vehicles would be IS cents for each
100 pounds. The schedule for COM
mercial vehicles would be As follows
Not over $500 pounds, IS cents .
hundred pounds.
Over 1900, but not over 2,oO(
pounds, 81 per hundred pounds.
Over 2,000, but not over 1000
pounds, $1.25 hundrc' pounds.
Over 1000 pounds, but not ovel
5000 pounds. $3.50 = hundred pounds
Over 5000, but not over 5000
pounds, 3l.75 per hundred pounds.
Over 5000, but not over 10000, :.
q hundred pounds.
Over 10000, but not over 10000
&2.25 . hundred pounds.
Over $4,000 pounds, $2.50 . hundred
pounds.
Motorcycles would pay IS . yea
fee and bicycles 81 4 year.
Solid tired motor vehicles would pa,
10 per cent above the regular scale.
Vshicles used exclusively for hAns