Evening star., 1937-12-22
S1.75 REALTY RATE
To Be RETAINED,
NICHOLS PREDICTS
District Fiscal Affairs Sub
committee Head Sees
Reduction as Remote.
OPPOSES TAX ADVISERS
IT,. S. PAYMENT INCREASE
Holds to Jacobs Formula-Plans
to Study Revenue Problems
Over Holidays.
By JAMES E. CHINN.

The emergency" 25-cent increase
In real estate taxes this year will
remain in effect for at least another
year, it was predicted today by Chair
man Nichols of the fiscal affairs SUBJ
committee of the House District
Committee-the group that will write
program of taxation to keep the
municipal government out Of the red
In the coming fiscal year
Irrespective of the forms of taxation
the Commissioners recommend to
balance the 1889 budget, Representa-
tive Nichols said the present S1.75
levy probably would be retained
''As far as I'm concerned, the Com
missioners will have to put up a
strong argument to get the tax rate
reduced" the Oklahoma Representa-
tive declared. In view of the
financial condition of the District, I
do not believe either the House or
Senate would agree to return to the
$3.50 rate"
Enacted for One Year.
The 25-cent increase was originally
intended to be in effect for one year.
1t was destined to die along with
the widely condemned business priv
ilege tax at the close of the current
) fiscal year, June 80, 1898.
But since the District is facing a
deficit of nearly S4,000,000 in the
coming fiscal year. Mr.. Nichols said
the S175 rate should be retained,
because it will yield at least one-half
of the needed revenue.
Mr.. Nichols also indicated he is
not in sympathy with the proposal
of the Citizens Advisory Committee
on Taxation that the Federal pay
ment toward District expenses be
increased above the present s5,00o0o0
to help meet the anticipated budget
deficit. He pointed out the discarded
Jacobs fiscal relations report con-
tained formula for determining the
Federal obligation toward the District
based on the cost of service of the
municipal government to the Federal
Government under which the munich
pal government at present would re-
ceive about 100000 a year from
the United States.
That was the most sensible method
of determining the Federal obligation
I've read" he declared No one has
yet shown me what's wrong with that
formula. If the amount the District
would get from the Federal Govern
ment under the Jacobs plan is even
reasonably correct, the District better
be satisfied with the $5,O00,0Oo it is
now receiving"
Studies Problem Over Holidays.
Instead of going home for the holi-
days, Mr.. Nichols said he would re-
main in Washington to make a COM
prehcnsive study the Districts
financial problems in preparation for
intends to start the first week in
January.
First of ALL" he declared, IT intend
to call on District officials for a report
on the amount of revenue the addi-
tional taxes Cong ess imposed this
year are expected to yield in the light
of recent developments"
Mr.. Nichols pointed out, however,
he is not alarmed" over recent re-
ports from the District Building that
the business privilege tax will not
produce more than $2,O00,00O of its
estimated s3,OOO,O0O yield. The ST.
100000 figure, he declared, is based
on six months of guessing
Il don't know how District officials
figure the business privilege tax will
yield far less than the originally esti-
mated $3,000,000," he declared Wash
ington now is in the midst of the
biggest buying season of the year.
1t seems to me that in figuring the
return from the tax the officials are
doing lot of guessing"