Evening star., 1937-07-03

previously eliminated DV lffe House,
which would allow the District to bor-
row F%deral funds from the Treasury
to meet operating expenses He point
ed out that the s5,OOO000 Federal
payment will last only month
The proposed new l per cent land
tax bill will result in great complica-
tions and delay in the preparation OF
new real estate tax bills. Hazen said.
The two major committee changes
luxury tax and land levy-were adopt
ed on combined motion and by a
vote of 6 to g. The three members
voting against these substitutions for
the House program were Chairman
King and Senators Capper of Kansas
and Overton of louisiana
Eliminated first by the House COM
mittee and rejected again yesterday
by the Senate committee. the income
tax plan appears to be definitely out
Of the picture. While King and
Capper both prefer the income tax,
information from the House side is
that it would not be accepted there
Capper indicated opposition efforts on
the Senate floor may be directed at
restoration of the business privilege
tax of three-f1fths of per cent on
gross receipts in place OF the luxury
sales tax The 2 per cent rate on
luxuries exempts food, clothing and
medicine.
With the income levy out, King
said his preference would be for q
modified business privilege tax with
graduated scale instead of a fiat
percentage rate on all business and
professional groups.
The per cent increase on land
values hits the pocketbooks of prop
erty owners much harder than the
House boost from $3.50 to $l.70 per
hundred in the general realty rate,
and Is likely to incur further opposi-
ton. The House change in the gen.
eral rate would have raised $780,
900 additional, while the land tax in
crease it replaces will require pay
ment of s4,8oo,ooo more by property
owners.
$3.50 Per Hundred on Land.
The Senate amendment means that
taxpayers here would bear q rate Of
$3.50 per hundred on the assessed
value Of the house or other improve
ment, and a rate OF $3.50 per hun
dred on the land. At present a uni
form rate of $3.50 applies to both
land and Improvements.
District officials demonstrated last
night it would mean IAN increase of
IL per cent in the bill of an individual
with house assessed at $4,000 on a
lot valued at $1,000. Such an owner
now pays SIS per thousand on the
combined valuation of $4,000, or 800
Adding l per cent on the value of the
land, would make the total bill $100
Taking the land separately, how
ever, the owner now pays SIS as his
annual tax on the $1,000 assessment.
The l per cent increase would make
the land portion of his tax $25, or a
662s per cent increase on the lot
On the present total tax levy Of
$l7,175,000 for land and improvements,
the $4,80O,000 additional to be levied
on land is equivalent to % per cent
increase in the combined levy.
The total tax levy of $l7,175, 900
is made up of $7,200,00O from land,
and $9,975,000 from improvements.
Considering the land tax alone, the
addition of $4,800000 to the present
$7,200,000, makes $12,000,000 from
land, or an increase Of 81 per cent.
Tax Bill Would Be $21,s75,ooo.
If the Senate amendment remains,
the total tax bill on land and improve
ments will go up from $17,175, 900 to
$21, ,975 900.
After the Senate has acted on the
bill 1t will go to conference with the
House, where the final verdict will be
reached as between the two widely
different revenue schedules favored
by each branch.
With each passing day that the bill
remains on Capitol Hill the fiscal
problem confronting the Commis-