Evening star., 1937-09-19
COUNTY COMPARES
[EV|ES With D. c.
Arlington Claims Its Taxes
Are Less in Drive to Boost
Development.

heavy tax burden which Congress
has placed on the District, leaders
OF Arlington County are advertising
contrasts with taxation in Virginia
in a campaign to swell the develop
ment of Arlingtons business and resi-
Dental areas.
The story of the Districts fulI-mar-
ket-value assessment on real property
which explains away the relatively
low tax rate-is being told the prospec-
tive residents of the county and to
businesses invited to locate there.
Coupled with this is a. description
of other forms of taxation in vir-
ginia as contrasted with those in the
District, including the newly imposed
business privilege tax and others or
dered by Congress to balance this
years budget.
No Quarrel With District
Harry K. Green, commissioner of
revenue for Arlington County, one
of the Virginia leaders actively pro-
noting the county's campaign. has
given The Star this frank exposition
of case. I'VE have no disposition to
proselyte or to make false representa-
tions to invite people of business to
Arlington. But we have wares to sell,
and If our price is more attractive
1t Is only reasonable that we should
advertise the fact"
With that as premise, Green
has detailed the results of q study
of the comparative taxes levied here
y and in Virginia, giving special at
tention to the effect of the vast diff
ference in the realty assessment sys-
tens.
BY an ironical twist of fate, this is
the very basis of one of the major
arguments which has been advanced
for years by District residents in pleas
to Congress for fair treatment on de-
cisions on the amount of the Federal
payment towards National Capital
costs But where some members of
Congress have disregarded the effect
of the full value assessment of real
estate, Virginia boosters now have
seized upon this point to promote the
influx Of business and residents to
Arlington.
Valuation Is Low
while our tax rate In Arlington is
high, yet our valuation is low" Green
explained Our assessed valuation is
approximately 40 per cent of the
market value. Our rate is s270 on
the $100 of valuation. 1t can readily
be seen that If our real estate was
assessed at full value We could reduce
the rate to s1.10 per S100, and still
receive as much local revenue as we
do now"
Asking how the Arlington realty tax
alton compares with that in the Dis
trict, Green makes this answer: THE
rate in the District is SITS and the
District has full market value assess
ment. What does this mean? Take
this as a sample:
"A $4,000 home in the District,
with $l.75 rate would be taxed at
SITS. A $4,000 home in Arlington
County, assessed at $4,000, with a rate
of $2.70 would be taxed at $108. This
means saving of $67 TO the home
owner Of Arlington as compared with
the District home owner"
How these data are being used to
boost Virginia is seen in Green's state
ment: Considering our close prox-
unity to the city of Washington, the
fact that we can reach the heart of
the business section of the Capital
within Is minutes, our unexcelled
hoo Jxro
sewerage and all necessary conven-
fences, we have bargain to offer home
seekers equal to any section of the
metropolitan area"
Compares Merchant Tax
Green then compared the Virginia
merchant tax with the new business
privilege levy in the District. The Vir-
ginia tax is levied in lieu of inventory,
Intangible and capital taxes which are
assessed in some Jurisdictions. In Vir-
ginia, q merchant doing a s1,000,o00
business would pay a tax of $l,337 at
the rate of $50 on the first $4,000 and
13 cents per hundred on the excess.
The business privilege tax for the
District levies a rate of two-fifths of
/ per cent against the gross receipts
In excess Of $4,000, or 40 cents on the
500 OF receipts. Green figured that
a District wholesale merchant doing
a business of sl,oo0,0o0 would pay a
tax of s3,992, in addition to the in
tangible tax on securities, money on
deposit and the like. He would be per-
nlitted to deduct taxes paid on tangible
personal property holdings.
Applying the comparison to the con-
ditions of the retail merchant, Green
explained that the same gross receipts
tax would be levied in the District
whereas in Virginia the retailer would
pay levy of $50 on the first $4,000 of
sales and l3 cents on all sales in ex-
cess of $4,000, so that a retailer with
sales totaling $4,000 in a year would
be taxed s82.40. The Districts gross
receipts would be taxed Sl92, but this
would be cut down to the extent of
the tangible property tax payment.
Stock Tax Exempt
Giving further explanations of how
the Virginia tax system is designed to
Aid in its development, Green said:
We have a tax on bonds in Vir-
elnia, other than Federal and State
bonds which are exempt. Our tax is
so cents on the 500, the same as in
the District. In Virginia, however, we
levy no tax against stock held in for
eign or domestic corporations. I be-
lieve we are one of, if not the only,
State to exempt this classification of
taxable values, and as a consequence
many people of considerable wealth
have purchased large estates and
moved to Virginia in the past few
years.
In Virginia the tax rate for money